RISE PREDICTED

Evening Post, Issue 28, 1 August 1936, Page 13

RISE PREDICTED

PRICE OF BUTTER

THE ENGLISH MARKET

(By Telegraph.—Press Association.)

NEW PLYMOUTH, July 31.

Basing his estimate on information available from his principals and various overseas sources, the New Plymouth- representative of a large English dairy produce .firm expressed the opinion that while the average price of butter for; the season just closing is about 2Jd' a lb' f.o.b. better than for the previous season, the coming season will record a further rise of at least 2d a lb". In other words, butter for the coming season will net f.o.b. New Zealand not less than Is 2d a lb. •

Of many factors which he considers will make for higher prices he mentions that the general prosperity in most trades and industries in Britain and the greater expenditure on armaments mean bigger spending power of the masses. Secondly, stocks of all butters in Britain are considerably less than they were a year ago, and a big consumption of butter is being'maintained notwithstanding the increase in prices.;

America provides a new element which cannot yet be estimated. Not only are stocks of butter in the United States 10,000 tons less than in July, 1935, but America has this year experienced floods and drought throughout most of the dairying area which have been unequalled for fifty years. It is expected that America must draw supplies from-both the Northern and Southern Hemispheres. The effect of this upon the London market cannot yet be foretold.