"AFRAID OF A BREAK"

Evening Post, Volume CIX, Issue 121, 26 May 1925, Page 7

"AFRAID OF A BREAK"

STATE OF THE BUTTER MARKET.

Advices received by the ' New Zealand Producers' Co-operative Marketing -Association—a farmers' concern—published in "The. Post" yesterday, indicated a- "very weak" condition of the butter market at Home, also a Press, discussion with "violent newspaper articles calling upon the Food Commission to take steps to protect the public." This information was supplemented to somo extent by the- High Commissioner, who described the butter market as "very slow owing to poor demand and very Targe stocks accumulating." The head "of the.Dairy Produce Department of a large firm engaged in the export trade was seen and questioned by a representative oE "The Post" to-day on the situation disclosed in tho above dispatches. ll e said that latest information received from the London office of his firm showed thnt the London butter market was decidedly weak. Prices were 164s to 166 a per cwt, and some New Zealand brands were 160s to 162s per cwt. The market had fallen 2s per cwt on the week. The indications were that prices will recede still further. Indeed, he had been informed by cablegram that it was the opinion of leading men in the provision trade that,there will be a bad break, mostly probably a complete collapse, early next month. This opinion was based on the fact that surplus stocks would by then amount to 20 000 or 21,000 tons. Butter is held up from sale in London and in New Zealand, and the curious thing about the business was that so far from hardening the price, as withholding supplies would lie expected to do, the reverse was the case, for tho more the butter is held up from sale the weaker tho market is becoming. The policy of holding back Acw Zealand supplies at this time lie was not prepared to discuss. At 166s per cwt in London the butter was worth but Is 3Jd free on board New Zealand, and it would return about Is 3d for butter-fat to the farmer. The prices (for unsalted) ranged between 160s' to 162s ordinary, and 166s to 170s for Mie choicest. It would not at these prices be sold at a loss to the fiiriiier, but it undoubtedly left them a very small margin to work upon, and they cu uld not face any further Bubgtunliai dvuu with equanimity.