ABOVE GUARANTEE

Evening Post, Volume CXXV, Issue 82, 7 April 1938, Page 12

ABOVE GUARANTEE

DAIRY PRODUCE PRICES

BUTTER*AND CHEESE MARKETS

"Evening Post," April 7. London markets for both butter and • cheese—so far as the current season has gone—have kept well above the prices guaranteed by the Government to producers. The scheme is generally well known, but for the benefit of those who do not know it it may be explained that all butter and cheese for export to the United Kingdom becomes the property of the Government as soon as it is put aboard the vessel in New Zealand. It is sold for what price the London market determines; any profit made on the business goes to the dairy industry; any loss sustained is borne by the Government; in other words, the community. A loss was | made by the State on last season's transactions of roughly £350,000; but] . unless something unforeseen at the present time deals the London dairy produce market a terrific blow, the business for this season should return • a profit, at least sufficient to wipe out ' -the loss on last season's guarantee. This view is supported by the graphs following these remarks and showing how the markets have moved since August 1,- 1937, when the increased Guaranteed prices became operative, he guaranteed price level prior to - August 1, 1937, is not shown, in the graphs, as it might cause some confusion, but the respective prices are as follows: — 1936-37. 1937-38. Butter, per cwt .. 106/- 112/Cheese, per cwt .. 61/3 67/These prices are in sterling cur--1 rency. They mean much more to the New Zealand producer, or vender, in as much as 112s per cwt for butter in London is, equal to 124s lOd New Zealand currency and 67s for cheese means 71s lOd in New Zealand currency. These guaranteed prices are , for "finest" quality produced; less is returned for lower than "finest" grades. »»i'h 11111111 * < 137 _T .'«____: Itllll—X_ 135 _____L__Jj J , 134 _ ; Ll . 133 T.L 132 f- + - 131 '. ;_L_L, is", .__- L 4 : 129. I U ._ . \ n»^_. I v 127 I 1 ;■ 125 . I—l 123 ~ : J L i 122 J J i. ', 121 _L 1 120 I __L 119 __ T _1 ,11* r JZ d—L • ■■« . 4 I J-1 . in f I I ' I-, UK I H2 \~ _J Gusranteed Prie» L»v»l. i 4.IrKJIIIII IffifF MOVEMENTS IN THE BUTTER MARKET. 1 The price'of butter feil to a point below 85s per cwt in- February, 1937 (when the former guaranteed price of 106s was payable), but it rose to 152s in October which accounts for the sharp peak shown in the graph. But for the purposes of showing the movements of the butter and cheese markets in the diagrams relating to them, the highest London prices quoted by the Marketing Department week by week have been taken and an average of these made for the month. , . New Zealand salt butter: 75 '_ j"*^ r^ 74 ~ ;." .^ »_j wf i \\jy 67 _ T _____ Gu«r«n»«d Priea Level, : «_I. . I I ivf I I , i5 ._ t - : _. M_[ •■ ■: «l__t___ __ - «I_lL___. •■ 61 _ .___ .__!.__ '■'. tol |I|III IMI I I MOVEMENTS IN THE CHEESE MARKET. ' For the purpose of showing the ups ' and downs of the market prices of New • Zealand white cheese have been taken. ; The lowest point touched by white cheese in 1937 was 51s in February of , that year.