DAIRY PRODUCE

Dominion, Volume 32, Issue 72, 17 December 1938, Page 4 (Supplement)

DAIRY PRODUCE

An Improving Market When reviewing the dairy produce market late last month, the -suggestion was made that bedrock had been, or should early be reached. At that time butter had touched 106/-. The next week it receded to 103/- 104/-. but lias since recovered to lOS/- as at last week-end. At this the price cloisely approximates that of a year earlier, when 100/6 ruled. At this-point it is of interest to refer back still earlier. For November. 1930109/- ruled as the month's average. A comparison for the first four months of this season, with those of last sea-

From this table it may be seen that the price average of these past four months is really an average of that of the past two seasons, same period, being mid-way retween 1936 and 1937 averages. It would appear quite probable that □ utter will remain fairly low. perhaps around 110/- for ' December-February. I'lieu in March, the normaljipward movement should be seen. . A pleasing feature of the latest Dairy Board report is the lowering of butter Stocks. These stand at 732.000 boxes, compared with more than 1,000,000 three weeks ago. and with a spring peak of around 1,400.000 boxes). A less happy feature of the, report is the big Danish premium at Novembers end 41/- a cwt., and now reduced but still high at 36/-. These figures are as great as thev ever have been. While we have been discussing lower production in the Dominion, Australia is very pleased with her splendid increase. The severe drought there has not been affecting seriously the dairying areas, these having had splendid rains. For the three months to September 30, butter shipments there totalled 16,500 tons, an increase of 11,000 tons on last season. It is quite possible that New Zealand shipments may be down by 10,000. or possibly 15,000 tons, this season. The two southern lands may thus strike a balance. BUTTER. New Zealand finest salted — Past fortnight’s average .... 106/6 November’s average ........ 908/3 A year ago • • • • • • 112/® 10G/6 equals 1/1 3-Bd. lb. butterfat payout. CHEESE. New Zealand white— Paet fortnight’s average ...... 68/6 November’s average <l/6 A year ago 6</<J 68/6 equals l/4.40d. lb. butterfat payout. Final Returns Now Due. The final returns for last season’s operations under the guaranteed price are now due. Sales of the end of July production and all stocks should have been completed about five weeks. ago. The public are now entitled to know just what surplus was actually realized on the whole season’s operations. Cheese is making a much better showing .than butter, from all angles of view, giving a much better return and maintaining its price level by comparison with past months and the whole past season. On a free market basis, it would be earning 3d. lb. butterfat premium. At 69/6 through November, cheese was 2/- cwt., or 3 per cent, below the level of November, 1937. Butter was down by 22/6 cwt., or 18 per cent. And for the past fortnight cheese has actually ruled at 1/3 cwt. above a year earlier, while butter was 6/- lower. . An unpleasant feature of the Dairy Board report is to see New Zealand butter held to a retail price of 1/2, when it has been down to 102/--103/-. At this and even to 106/-, it could have well sold at 1/1. A Id. lb. was sheer surplus profit to Home retailers. Another feature that hurts our pride is to see Danish butter retailing at 2d. lb. more than New Zealand. The great strength of Danish is a most notable feature of the current market. Another is the excellent rate of consumption of butter in Britain, The market appears reasonably well-assured for both butter and cheese.

Bull, shows: — 1038. 1937. 1936. August . 121/115/6 118/September ... . 119/9 119/3 106/6 (Jetuber ...... . 114/0 136/6 99/6 November .... . 108/3 130/9 109/Average ... .' 116/125/6 108/3