RISING BUTTER MARKET

Evening Post, Volume CXX, Issue 86, 8 October 1935, Page 8

RISING BUTTER MARKET

A year ago New, Zealand butter was commanding no more than 70s per cwt in London; today the price is 122s^ per cwt. The.market has | been rising with astonishing rapidity since the beginning .of September^ when it opened at 100s, having ruled i steadily at between 94s and 96s | during August. The reason generally given for this extraordinary increase :of over 20s per cwt in a month is shortage of supplies. The Imperial Economic Committee's estimated stocks of all butter in store in the United Kingdom at October 1 was the equivalent of 831,116 boxes, or 715,977 less than as at October 1, 1 1934. On September 1 last these estimated stocks were 1,064,915 boxes, a deficiency on returns for September 1,1934, of 722,531 boxes. But it was not until after publication of those. September returns that the price for New Zealand, Australian, and, in fact, all butters imported into the United Kingdom began to move upwards. Of course, the retail price in the British market moved in sympathy and herein lies the danger of rising prices for necessary commodities, especially butter: the return and use of substitutes are facilitated. However, in the meantime New Zealand dairy farmers able to take advantage of the present high market should benefit, for not only butter but cheese also is increasing in value. Production in New Zealand this season is in reduced volume, due to adverse weather conditions. Even so, if prices for dairy produce remain at present levels or do,not fall much below them,., what may be short in production will be fully compensated for in much-increased returns.