WHY, PRICES ARE LOW

Evening Post, Volume CXV, Issue 12, 16 January 1933, Page 10

WHY, PRICES ARE LOW

"Evening Post," 16th January. Prices for New Zealand butter in London continue at round about 82s per cwt, and New Zealand white cheese is down to about 48s per cwt. Coloured New Zealand cheese, however, which is in temporarily short supply is quoted at 565.

Cable reports of the markets generally describe- the butter market as quiet or steady, and the cheese market is similarly described. To-day's cablegrams show the butter market still at a very low level Joseph Nathan and Co. being advised this morning: New Zealand butter, 81s per cwt, market quiet." Similar advice has been received by the New Zealand Producers' Co-op. Marketing Association. •I. J.Lonsdale and Co. informed A S £aterson by cablegram yesterday that the cheese market is cleared and prices are

Weddel and Co., London, advised A. H. ■ Turnbull and Co., Wellington, that heavy arrivals of butter during November and December proved too much for the Christmas trade, and as stocks accumulated, so prices weakened until on 16th December, 81s to 82s per cwt was quoted. This was the lowest price recorded for many years. NtX ter l , c5 nsnmption on a retail price of lid per lb for New Zealand, then improved matters slightly, and the market has remained quietly steady at 82s to 84s. Danish, m the meantime, fell, from 121s 6d on 2nd December to 112s on 7th December, thus bringing the margin of difference below 30s. .Latest, cablegrams indicated the London Evening ifu^ Cl°Sing last PRICE DISPARITY. In explaining^the margin between the prices for, New Zealand and Danish butter lurnbull.and Company state that it is a. matter of 'supply and demand." Arrivals of butter in the United Kingdom for November show this as follows*— ' Nov., 1932. Nov., 1931. -vr" n' , , Tons- Tons, i ■■■srewt_Zealand5 rew t _Zealand ... 11,290 6,561 ! Australian 8,460 5,752 ■. Danish .......... 10,090.. 9475 . Increases are New Zealand, 4729 tons iius, together with an increased producafS ?, Ye "S. 011*3 of 20 per cent, has undoubtedly affected prices for the New Zealand and Australian article. While we m New Zealand deplore the low markets, recorded for our produce, we are somewhat fortunate in being able tTmar! n q p S^^astill butt^L^i 6 I 8!* friday-^ November the exW fh f A ad T eakened t0 su<* an yere sold at 84s, an undreamt of low level reW° C+Tf d *he quickest Ind relapse that we C an remember. By the following Monday, owing to improve! fd Ma r s firr?^ llOlderS m r Pepo Vrt /^feftd^rwa^eSTisr much response from buyers, who are regretting -the purchases they made during the short-hyed excitement above refei> red to. The trade generally is still apprehensive of- large quantities afloat and neither the increased, tariff on foreign butter ,of 15s per cwt,. nor the news that 20 per cent: of the exportable surplus from Australia and New Zealand is> to be kept back pro tern, has had the. Blightest">' steadying effect. Australia appears to. take.a gloomy view of the future, for down to 80s c.i.f. has been accepted for 'Kangaroo' grade for shipment." CHEESE PRESSED FOR SALE. Sellers of cheese pressed sales during December because of heavy shipments afloat. Turnbull and Co. report the market falling, and the market fell from 64s 6d on 2nd December to 48s 6d white and 56s 6d coloured on 6th January. "There has been a tendency this season to avoid coloured cheese,, owing to complaints of discoloration and the preponderance of white cheese has manifested itself; latest advices show coloured at a premium of 8s per cwt. No doubt this will rapidly disappear as the proportion of white and coloured is rectified." The market for New Zealand cheese weakened somewhat in November, report Samuel Page and Son, but this was fol-, lowed by a rapid advance on the part of both descriptions to 645-655. "We are inclined to attribute the improvement to the efforts of short sellers to cover commitments: We previously reported sales' for forward delivery, November and December, at 60s; and with some delay in arrivals last month (November), there was an active inquiry for the small available supplies." . : . Arrivals-of New Zealand ■ dairy produce in the United Kingdom during the next three months, compared .with corresponding periods of 1931 and 1932, are as follows:— ■ ■ • , 1933. 1932. 1931. N.Z. Tons. Tons. Tons. Butter ......... 34,732 36,084 -31,177 Cheese , ..• 32,950 ,32,066 • "33,300 HEAVY BRITISH IMPORTS. The Dairy Board has received by. cablegram British Board of Trade ..imports of butter, and cheese for the full twelve monthtf of 1932. These compare as follows:— ....-, 1932. 1931. 1930. Imports. Tons. Tons. Tons. Butter ......... 422,454 403,558 341,422 Cheese ......... 150,330 . 144,237 155,620 Imports, of butter from various countries for 1932 against those of 1931 show decreases from Russia; Finland, Estonia, Sweden,'-Netherlands,- and Irish Free State, and increases from New Zealand (12,767 tons), Australia (13,531 tons), and Denmark (5882 tons). , New Zealand cheese imports alsto in- . creased in 1932, and were 92,637 tons, com- ' pared with 86,582 tons for 1931. New Zealand headed the list, Canada being second, furnishing 37,364 tons in 1932, compared with 35,337 tons for 1931. , It willbe seen from the above returns that British imports of dairy produce continue to increase, and this is especially the case with butter from Australia and New Zealand, and ~the former's cheese contributions have risen to 3677 tons in 1932 from 2393 in 1930. Butter dispatched from New Zealand for the period Ist. August to 31st December, 1932, amounted to 51,925 tons, or 9415 tons more than/ for the corresponding period of 1931. All butter exports for 1932-33 season are; for'the United Kingdom, excepting 259 tons for Canada, 86 to Honolulu, 220 to Panama, and 198 for other countries.

All the cheese exported, amounting to 33,726 tons, was for the United Kingdom, excepting 47 for other countries.

Prices for butter apparently rule low because the Bri'ish market's' imports are beyond actual requirements at the moment. The figures* above quoted point in that direction.