THE BUTTER SLUMP

Evening Post, Volume CXIII, Issue 136, 13 June 1927, Page 11

THE BUTTER SLUMP

Kcviewmg the export trade of 1920-27, llio National Dairy Association, in its annual report, states that during the general strike in England in May last year, butter prices were iixed by the Government at tlie ruling wholesale rates for two weeks. When the market slumped in October, '-this position was created bj- the holding policy of some New Zealand factories who were alleged to have been responsible for an accumulation of from 000,000 to SOO.OOO boxes of a total accumulation alleged to have been 1,000,000 boxes. Karly in November the Dairy Board took thai-go of the marketing of new season's butter, and adopted a jirice-naming policy, the first level bejrig fixed at from 148s to 1;i0s, at a time when old season's slump stocks had been i-eliing just previously at Kills to M4s. .. Tlie market rose fairly vapidly thereafter;- and touched 176s in December, and continued at 170s. throughout January, but in February, owing to increasing supplies, the market came back ! to 100s.. at which point early in March ', the pnce-namiiig policy was. altered, the market being.made free, with restrictions upon tlii! quantities to be sold. Under this release the market slumped to 144s and 1-lOs, but promptly recovered (o lo4s, within a fortnight, and has since remained fairly ntablc at Horn I,'iOs to 1565, the prospccls being for speedy improvement .(which have .since bueii realised). It.is reported by the Dairy Board thnt the price average for the first pool is Hils od. The prospects arc that probably higher figures will be realised for the second pool for the balance of the season. "The cheese market for new season's produce opened at 95s to 9Cs, which figure ruled till early in the new. year, when an casiti;; tendency took it down to 84s to Sos. When the'market was released in March] the price slumped to 73s to 7Cs, but after approximately two_ months at that level lias recovered to 90s to 02s. The course' of the market has not been particularly satisfactory ,and.cheese producers are likely to be at a disadvantage in comparison with butter suppliers. The low prices ruling in Britain for meat, together with the general economic position, are unquestionably factors in the situation."