IS IT DANGEROUS.

Hawera Star, Volume XLVIII, 8 October 1924, Page 7

IS IT DANGEROUS.

BUTTER MARKET REVIEWED. PHENOMENAL RISE IN PRICES. Is the current value of butter in the London market- at a dangerous level Hie question obtrudes itself- for the retail price, it is believed, must be perilously near the point where consumption is checked, and that point is when the price exceeds 2s per pound retad Taking “finest” New Zealand and Danish averaged prices for the week ended September 27,, compared )' 1 th top prices ruling two weeks before, it will be found that the upward movement has been as follows: 13th 20th 27tli Sept. Sept. Sept, cwt. cwt. cwt. New Zealand 210 s 210 s 220 s Banish 212 s 224 s 233 s In the' case of New Zealand there was a “jump” in the week of 10s per cwt, and of Danish of 14s per cad. . ■ These are the prices as cabled by the High Commissioner, but private cabled information from London gives higher quotations. German buyers have been taking Danish butter, with the result that the price went to 240 s in London, and the higher quality New -Zealand butters advanced in sympathy. Danish production is. fairly regular at 2000 to 2500 tons a week all the year round. Of that 80 per cent, goes to .the United Kingdom, and notwithstanding what is said of German buying, the United Kingdom is still receiving at least 70 per cent, of the Danish make. Fresh make of New Zealand butter has yet to reach Home, and this, together with Australians quota, should reach fully 8000 tons, to arrive before Christmas. Moreover, Australian and New Zealand production is heavy. There is no New Zealand butter in sight so far as Loudon is concerned before December. What will lie the price then?' That is the .question that is giving cause for thought here to-day. The Post is informed that the highest price that Home buyers fire prepared to pay to-day for New Zealand butter for immediate shipment- is 200 s per cwt., covering cost, insurance, freight, exchange and other charges incidental to its landing in London. That is 20s per cwt under the spot market price of to,-day. ' Is New Zealand butter being used for blending? Danish, it is said by those in the trade, is not used for that purpose, for there is always a sale for it, cost what it will. However, the average of the prices current- in London on Saturday for butters other than Danish was slightly under 2045, and'if this is all blended it would give a butter that'would cost Is lOd. Considering how fine margins are cut to meet the retail market at Home, it would then he possible to incorporate a. New Zealand butter costing 220 s in a blended butter to retail at 2s per lb, taking into account the lower prices for lower grades of butters. Incidentally, a private cablegram received gives New Zealand finest at 222 s to 2245. But while Danish could command 2s 4d per pound retail, other butter exceeding 2s sets going the margarine uendulum, and the consumption of that subtsit-ute immediately rises! It is believed that American competition will make itself felt. Stimulated. by -a protective duty of 4d per pound, production in the States is said to have left a large surplus available for export, and with present fancy prices in .London, it is to that market that supplies may go. There was, a fall c.f Id per pound all round in the New \ork butter market last Monday. Autumn or “fall” make, as it is called, was expected to he 20 per cent, higher ibis year than last. " The rise in the price 'of butter is quite unexpected. It may he attributable to a g.reatly-increased floating population of tourists and others, but some of those who watch statistics profess to he unable to otherwise account for it. and they think' the pric-e of butter is perilously near the danger point.