DAIRY EXPORT TRADE

Evening Post, Volume cxxiv, Issue 148, 20 December 1937, Page 14

DAIRY EXPORT TRADE

THE BUTTER MARKET

"SLASH" IN PRICES

(By Telegraph—Press Assn.—Copyright) '' LONDON, December 19.

Butter is experiencing a difficult market. Stocks are., considerably down oh those of the previous fortnight. This has encouraged the hope for,a useful appreciation, but the advance is purely nominal and business has been entirely distributive. . There has been no speculation, indicating that; despite the improved statistical position, there is little optimism. There is plenty of butter in sight, ■ and lower prices are expected in January; , , Retail butter prices have been slashed drastically, Empire average prices being from 13d to 14d per lb; but consumption, though improving, has still not recovered the loss during the period of high, prices. . No interest is displayed in cheese. Though arrivals have been comparatively light \he demand has been barely sufficient to clear them.

London merchants handing New Zealand-butter are told that there will shortly be a check in the recent fall in prices although with the arrival of heavy overseas shipments in December there is.likely to be-a further downward movement, states _ xne Post's" London correspondent, Novembeif has been suggested in some quarters that .the fall in prices has simply been due to the arrival, of rather heavier butter supplies after a Penodof comparative scarcity. .The general view\ however, is that increased supplies have not been nearly sufficient to cause the sharp drop that has occurred, and that it is. due mainly to a contraction in retail demand due to prices have risen steadily from lOd to Is 6d per lb, and although there has now been a reduction to is 4d 1 do not think the trade will be regained until prices come down to Is 2d." said one merchant. SWING TO MAKGAKINE. - "It is generally believed that a large proportion of families earning between £2 10s and £3 a week 'are now using half butter and half margarine. Fortunately from the point of view ot Australia and New Zealand, the quantities now available and to arrive are not exceedingly heavy. For the general interests of the trade, if prices have to- recede .if is better, that they - should do so;, now than during the period of heavy supplies. ..Unless something., unforeseen happens,.... 1...d0 not think 'prices/this.'year.will;.go as low '.as' the 84s 'per -cwt reached-last • February.- It is possible" that they might not even fall much; below the • guaranteed P>r""e6ple have not liked ,the ■ change back -to margarine, as during the periodvof low prices,they :became used to ■■'-Another.merchant said that although rather heavier supplies were becoming available,-he.thought'prices had- fallen lower than, the statistical position warranted. The market would certainly not be over-supplied. for some time to come. ' Foot-ahd-mquth disease on the Continent should be a "bull" factor on the market. The-spread of the disease was cutting Holland's exports and increasing; German imports.* Both ten-dencies-should improve matters for Pomirubn,~'-butte'r,. tit remained to be seeri'.whether the present reduction; in retaiiWprices would be.sufficient to win .back.the trade. \ CONSUMER'S POINT OF VIEW. "The-Times" drew attention to the sensitiveness of consumption to changes in prices of .foodstuffs as had occurred in: the butter market. The' consumer was not without:means.'of: protecting himself -against- high prices.' The price of New "'■ Zealand finest salted butter •went to 152s and Danish to 160s per cwt. .This was followed by a severe contraction in' consumption. Retailers reported a serious falling, off in the demand, and wholesalers in the middle of last week refused'tofdo further business at, the high rates then ruling. Later, prices were further reduced, and a moderate business was transacted