BUTTER MARKET RECOVERS LOCAL BUTTER PRICE

Evening Post, Volume CXVIII, Issue 24, 28 July 1934, Page 16

BUTTER MARKET RECOVERS

LOCAL BUTTER PRICE

An advance in the wholesale price of Ntfnr Zealand ibutter amounting to 5s per ewt took place in London this week, and at the close of business for the week the market was steady at the advance,, according to the report received today by cable by the Dairy Produce Board. Quotations are: —New Zealand, salted 78s to 79s per ewt (which equals approximately 9.06 d per Ib, f.0.b.), compared with 73s to 74s last week, unsalted 82s to 84s; Australian, salted, 72s to 735; Danish, spot, 100s (an increase of' Ms). .Retail prices are unchanged, with New Zealand butter selling at 10; l per 1b and Danish at lid. The cheese market is steady, wkh New Zealand cheese still selling retail at 7d per lb. Wholesale rates are:—New Zealand, white J9» Od per ewt (which equals approximately 5.34 d per lb, f.0.b.), compared with 4Ss to 4Ss 6d last week, coloured 46s 6d; Canadian, white 58s to 60s, coloured 54s to o&s; finest English farmers', 89s to 06s. •" . ■

• The board has also received the following advice "from its agents in Canada:— Butter: New York, 23 cents; Montreal, 1!)% .cents.

Samuel Pase-uud Son report from Lon-. don under,yesterday's date:— Butter: Market firm. Danish, D6s to 98s per ewt (last week, 82s to 80s); New Zealand finest salted, 77s to 70s (72s to 745;; Australian, finest unsalted 74s to 76s (70s to.74iS'), salted 71s to 73s (65s to 68s); G.A.Q., 68s to 70s (63s to 645). Cheese: Market firm. New Zealand, white 49s 6d per .ewt (last week, 48s), coloured 46a Gel (455); spot price for Canadian, white 50s to 52s (54s to 58s), coloured 50s to 52s (52s to 58s). (Canadian quotations are for new season.)

A. J. Mills and Co. have received cabled advice from London, July 26,.. giving the following market prices as ruling at the close of business on Thursday:—

Butter: The market is firm. New Zealand, finest 78s to 795, firsts 76s to 775, unsalted 82s to 84s; Danish, spot 90s, f.o.b. 80s; Australian, choicest 725, first grade 71s; Siberian, 64s to 655; Baltic States, 64s to 665; Irish, 705.t0 725. Cheese: The market is steady. New Zealand, white 49s to 49s 6d, coloured 46s 6d.to 475; Canadian, c.i.f., white aud coloured, 48s to 50s. AUSTRALIAN PRICES. * The Dairy Board has been;advised by the Australian Board that the minimum prices at which Australian butter may be sold for- forward shipment to the United •Kingdom during the coming week have b.een ; fixed ;at B%d and; B%d lb. These prices are the New Zealand equivalent of the Australian . c.i.f.e. , mininium price fixed. . '. V;■ '■. .•,,''. ' .'

WHAT STABILISATION MEANS

It appears to be a matter -of indifference to -the---Australian butter producer how the, London market for butter .goes; .. lie '■■■is "assured of a stabilised price in ■ Australia. Moi-e----over, other things being equals he. can-and does sell his butter in. the English market at some shillings under that ruling for New Zealand. For instance, cablegrams received by the New Zealand :Dairy Board for the past few weeks show the following differences:— T Mew Zealand. Australia. Ju'y- Per ewt. Per cut. "20 73s to 71s (J7s to CSs *» • • 73s to 71s ÜBs to 6»s r<> 73s to 71s (iSs to (i!)s '■ June. 'j' J 75s to 70s 71s to 72s -.■••■; • • . TJs.-to-7Ss" 73s to-74s la. .......... 79s to SO*. 743t0.755. ■ • Compensation for this variation :iii overseas,price \Vitli New Zealand; butter is obtained by the; -Australian .producer ;by "stabilisation" of the domestic price at 140s per ewt, or, on the present British price., of 67s Gd per cwt, less overseas freight and other charges; plus 20 per cent, exchange. , KlVorts have been made for some time past to get Government approval to "stabilisation" in New Zealand, but the Minister of Agriculture (the Et. Hon. C. K. JMacmillan), while promising that "dairy companies would have an oppor: tunity of putting'a1 stabilisation scheme into operation, but that it was understood the scheme would, not involve au increase in price, in the meantime at least." .. ... But.the "New Zealand Dairyman" wants to know "Why should it not involve an increase in price? Why should butter he retailing at say, lid a lb in New Zealand just because it is being retailed hi Great Britain at lid a lb—a country into which the whole world is dumping its butter surpluses? Why, for instance, should it not be sold at Is 5d and Is 6d a lb, the same as in Australia? What earthly use is a stabilisation scheme if it is only to eliminate 'the present high freight charges.' ''What the producers want is an extra 2d or 3d a lb on all locally-consumed butter in order to help themjover the present crisis. Why n&t be;,frank and open about it and take the consumers into our confidence. The dairy farmer has a perfect right to a reasonable-reward for his labour, the same as every, manufacturer, tradesman, or professional man. The same right even as the ■-Canterbury wheat grower.' ..'■..;'

"What is wanted, is a stabilisation plan and a stabilisation committee, and this committee must be: given full power to determine what quantities of butter are to be placed on the local market and fixthe price at which this butter is to be sold. The margin between the local price. and London' parity would go into' a stabilisation fund for the benefit of all producers. There would be no more unfair and unscrupulous Qompetition and no unnecessary freight charges for the simple reason that Bueh would benefit no one."'