BUTTER PRICES

Evening Post, Volume CXIII, Issue 11, 14 January 1932, Page 14

BUTTER PRICES

A BIG DIFFERENCE

DANISH AND NEW ZEALAND

Several million pounds sterling-are being lost to New Zealand dairy farmers and the country as a whole this season, owing to. the unaccountable' fact that for the past three months Danishibutter has been selling in London at 30s to 40s per-cwt more than ■ the best- butter New Zealand can export (states a message from.MorriusviHe to the "Auckland Star.") Farmers .hit hard by the low advances made by their dairy companies are asking why there should be such a difference. ,

.British housewives are now paying 3d per pound more for Danish. butter than for New Zealand finest butter, which has been graded 93 points or 9i points at the Auckland grading stores this season,. and has been described in glowing termsby the Tooley .'Street merchants in their, reports to ' New Zealand i factories. Farmers throughout the Waikato want very much to know why Danish butter has been sell : ing at Is 4(1 in the English grocers' shops Since 31st October, while ,in the same period New. Zealand finest butter has drop^ ped from Is 2d to Is Id.. : "Is our advertising and salesmanship in all its branches at Home at fault?'? is the question asked in a report presented today, at a', meeting of directors of the Morrinsvilie Go-op. Dairy Company, which, is making over 2000 tons of butter this season. '/It -would pay the New. "Zealand dairying, industry to- spend almost un-. limited funds on salesmanship and advertising in Britain if such a. campaign would make' up. the leeway in the price of New Zealand butter as compared with Danish.". -The ~ report j frankly, is . unable to account for the big difference in prices. It is a mystery. ' ■ '■■

; The, comparatively, high -wholesale price paid for Danish i butter—it -was 136s per cwt on 2nd: January, .when New Zealand was quoted at 98s 6d—seems to deny the popular assertion that present low prices for New Zealand produce are caused by the financial troubles of the Home market. If that-market is impoverished, how is it that it can afford to -pay 30 per cent, more for Danish than for New Zealand? The reason must be that Danish quality completely overshadows New Zealand quality, -or ,that our salesmanship at Home is at fault.' .

The report goes on to prove that there is nothing "wrong with the quality of our butter,, and extracts are given from reports received by the company from A. C. Rowson, ,of Tooley Street: "Ex s.s. Kangitane, flavour extremely, good. Has a most attractive , buttery aroma. Texture very good,, finish good, colour uniformly correct shade.". "Ex s'.s. Tainui: Flavour very fine indeed. Has a pleasing creamy finish, texture good, colour uniform, finish attractive." .

In the face of constant reports from the merchants that. New Zealand butter is arriving in . splendid condition, says the report, how can anyone account for the fact that the market will only take our butter at a discount of 30 per cent? Ten shilling's should be'the normal difference in price between Danish and New Zealand butter^ which leaves an unaccountable difference of about 30s per cwt. , If the price of New Zealand butter was 128s, as it should be, our suppliers would be receiving Is '2%d per '.pound, of b'utterfat instead of 10*4 d, as was the case last month. ■■'■■-■■■■■