BUTTER FOR AUSTRALIA

Evening Post, Volume CV, Issue 111, 11 May 1923, Page 3

BUTTER FOR AUSTRALIA

A VIEW OF THE MARKET.

(II mBORATH. —SPECIAL TO IHB POST.)

AUCKLAND, This Day.

The position of the butter market in New South Wales is of special interest to New Zealand just now, in view of depression in the London market. An Auckland business man interested in the dairy industry, who recently returned from Sydney, stated that New South Wales had not more than 26 per cent, of the quantity of butter that would be necessary to provide supplies for the winter months. As local .production from now onwards would fall away to practioally nothing, supplies would have to be obtained from New Zealand. A certain quantity of butter had already been obtained from the .Dominion, the price paid b.einsr about Is 6d f.0.b.. This represents about Is Bj>d to Is 9d landed in Australia with duty paid. Sydney merchants were selling first grade butter at 224s per cwt. wholesale, and on those figures New Zealand should be Retting 3 s 8d to Is 9d per ]b f.o.b. The speaker expressed the opinion that if New Zealand producers formed a pool in a somewhat similar manner to the New South Wales butter merchants, higher prices would be obtained for Dominion produce. It was anticipated that by the end of June, the price of butter would reach 252 a per cwt wholesale. This would Rive the Dominion producers the opportunity to realise a good profit if they were prepared to organise. The slump in' the London market appeared to be operating in favour of Australia. That country was not buying largely from New Zealand yet, evidently anticipating that Dominion, suppliers would ultimately, accept still lower prices. As to the'possibility of Australia drawing on the London market, the speaker said New bouth Wales merchants had been offered Australian butter from London, but h» was sure there was no chance of business being done. Any butter that came back would require to ba submitted for regrading. and merchants wouJd not take such a risk. There was a surplue^f butter in Queensland, added the speaker, but supplies from that State were not popular in Sydney, and were purchased only by biscuit and cako manufacturer*.

The opinion ws« also expressed that f.o.b. prices for New Zealand cheese for Australia were too low. New Zealand was setting 9d per Ib f.o.b. at present, and the wholesale price in Sydney was from Is 4d to U 6d. ■"