DAIRY PRODUCE

Evening Post, Volume CII, Issue 48, 25 August 1921, Page 8

DAIRY PRODUCE

WHERE IS THE MARKET?

LOCAL tiUTTER SUPPLY.

Prophets of the future prices of New Zealand butter and cheese ior export v/ero hard to seek in Wellington to-day. Tho London market, in face of various cablegrams received, is exceedingly hard to understand. Yesterday, a Wellington exporting house, which haa both bought and consigned outputs, was advised from London as follows: "Butter and cheese: We quote very depressed; buyers disinclined to operate." To-day the New Zealand Loan ' and Mercantile Agency Company, Limited, advises receipt of tho following cablegram from its London house undor date 24th instant:—"New Zealand Butter: No change in "market (last quotation £13 2s per cwt),. 17th August, 1921, Cheese, £6 12s per cwt." Certain firms who had buyers out in the country for whole,or part outputs of cheese, and outputs of butter for September, October, and part of November, withdrew their limits, which were in the. vicinity of Hid per pound cheese, and up to 2s Id per' pound butter. This was some days ago. Instructions to resume those offers. or any offers at all, it is reported, have not yet been received. Their business was future; but the spot position is still obscure. The High Commissioners' progressive prices for; New Zealand : butter and cheese in London, during August, with their dates as cabled, are as follow:— < ■

Butter?-6th August, 259s to 262s per cwt..; 13th August. 259s to 2625; 20th August, 264s to 2665.

Cheese—6th. August "(highest white and coloured), 132s to 140s; il3th August, 136s to 1389; 20th August, IS<US to 1365; exceptional, 138s.

The Loan Company's quotation for August for New Zealand butter is 2325, a marked difference when compared with tho High Commissioner's quotation, but identical with tho Government ex store price for New Zealand for the period, 19th to'2sth August. as quoted by the Loan ■ Company, is unspecified, white or coloured, but it is 2s to 4s per cwt. below the High Commissioner's price for white, and about the same as that officially given for coloured, viz.; 150s to 1345. .

Mr. T.F. - Gibson, of A. H, Turnbull and Co., < Christchureh, informed tho Sun that early this month prices cabled out to New Zealand from London were lid per ib for cheesS, subsequently increased by competition until up ito 11-|d was offered. Business was oventua-ly doijo at lljd. Suddenly, as The Post announced, all offers and limits were withdrawn.

Mr. Gibson is reported to have said that it was more probablo that the big factor ,in the situation was the financial stringency. Buyers are mot making firm offers, their idea of values ranging from 10d- to lid. Very few factories took advantage of the offers previously made—he knew of only. two in the South Island. Another reason operating against forward buying was the difficulties connected with shipping. It is apparently anticipated by London operators that there will be delays, mainly in English ports, owing to the likelihood of vessels having to wait for cargoes. When firm, offers for cheese wore made, it was generally stipulated that shipment must be made not later than April next. The freight on cheese, which naa just been fixed, is on a par with that ruling last season. ' In the case of butter, however, it. has been increased from 5a 4d a box, plus 5 per cent, to 6s net. The shipping companies have promised to reconsider matters in January. If there is any reduction in running charges, rates for produce will be reduced. The' position relating to ( forward purchases of cheese applied' equally to butter. Whereas there, were offers at 2s Id f.0.b., no sales orj buyers at this figure nave recently been reported. Buyers' ideas of values were slightly under 2s. Mr. Gibson concluded with the opinion that the dairy industry had no reason to : be discouraged. Cabled advices,/ pointed, ho said, to a prosperous season for both butter and cheese.

So far as the local butter market is concerned, the Government subsidy of 2d per pound on butter will cease "at, 31st of this month., The price is expected to BO up after that date, by at least <2d per pound. Its future will depend upon its export value. What that will be is extremely uncertain at the moment. As the export prico fluctuates week by week, some difficulty may be experienced in adjusting the local, prico; but probably a basis will be arrived at that will secure an even price until at least the winter months are over.