BUTTER PROSPECTS

Evening Post, Volume XCIX, Issue 124, 26 May 1920, Page 8

BUTTER PROSPECTS

THE COMING SEASON

Disposal of next season's outputs of butter and cheese, in. default of the extension of Imperial purchase, is still unsettled. At the time of writing nothing further had been received by the Imperial Government beyond c. request to know producers' views en the subject. These may be crj-stelioec 1 in two words: free markets. Private importation into tho United Kingdom is prohibited, and the price of Government importations is still controlled. Hationing will cease on 20th Kay next.. If any change is made in price it is expected that it will be in a downward direction. The present maximum retail price is Ss, but it has been reported that this may be dropped to 2e 6d per pound. So far at next season's Xew Zealand output is concerned proposals for its distribution in. England through the Wholesale Co-oper-ative Association are now under discussion by dairy factory directors, and the matter is expected to be brought forward at the I'almerston Korth Dairy Conference next month.

At*the same time it is reported that other offers are being made to producers for butter in the event of its purchase by the British Government not being continued. Should this be the case, and producers are forced to market their butter where and how best they can, there will remain the solution of the important problem oi shijJping space and freight rales « " It has been calculated that the control price of 3s per pound for butter is equivalent to '2s 3d per pound for expovfc for New Zealand butter. Assuming that the control price is reduced to 2s 6d per pound, that would still make the export value equal to Is 9d per pound. If that price should stand, then the local retail price would be at least 2s per pound.

Australia is short' of butter, except in 'Queensland, which is called upon to assist in meeting the scarcity in other States. Were exports from New ZeaJand permissible there would be a large .■md remunerative market for any sur-plus;-and that close at hand. For the week ended 15th May there were but 746 boxes of butter held in Melbourne on Imperial Government account.

Queensland butter factors met competition for supplier in. the Melbourne market, and at the same time overcame the'fixed price by making substantial increases in commissions and on the costs of boxes. The butter-controlling authorities have become alive to the fact that, as the product n under supervision at a fixed maximum price, the usual channels of distribution should be entitled to their respective portions of the quantity bought. To meet the situation, the Commonwealth Dairy Produce Pool Committee notified distributing agents that Hl future all butter from Queensland would be definitely controlled by them, so that an equita.ble allotment may be' made. Wholesale Melbourne quotations are: First grade, Is lid per 1b ; seconds, Is 9d; thirds. Is B|d; prime separators, Is 7d to Is 8d; dairy. Is s£d to Is 6d; and inferior, lov.-ei.