“AFRAID OF A BREAK.”

Hawera Star, Volume XLV, 30 May 1925, Page 9

“AFRAID OF A BREAK.”

STATE OF THE BUTTER, MARKET,

Advices received frqnr the New Zealand. Cooperative .Marketing Association—-a fa.rmers;’ concern — indicated a “very weak” condition, of the butter market at Home, also a Press discussion, with “violent nerwispaper articles calling upon the Food ■Conimiissipn to take, steps to protect the public.” This information, wa,« supplemented to some extent by the Il,igh Cbnnnissioher, who, described the butter market as “very slow owing, to poor demand and, very .large stocks accumulating.” The head of the Dairy Produce Department of a large firm engaged in the export trade, Was seen and: questioned by a representative of The Wellington on the situation disclosed in the above* dispatches. He said that latest informatioh*, received from the London office of. his: firm showed' that the London, butter market was decidedly weak. Prices were 164 s to 166 s per cwt, and some New. Zealand bra,nds were 160 s to, 162 s per cwt. The market, had fallen 2s per cwt oil the week. -The indications were that prices will recede still, further. Indeed, he had been, informed by cablegram, that it was tire opinion of leading men in the provision trade that there, will be a had break, probably a complete collapse, early next month. This opinion was based oh the . fact, that, surplus stocks: would by then amount to , 20,000.. or 21,000 tons. Butter is held, up from sale in London and in New Zealand,, and the curious thing about the business was that so far from, hardening. t)fe price, as withholding supplies . would hq jexpectp'd. th[ do, the reverse was the caise, for the' more the butter is held up from sale the weaker the market is becoming, The policy of holding back New Zealand supplies at this time he was, not prepared to discuss:. At 166 s per cwt in, London the butter was worth but Is 33d free> on, board New Zealand, and it would return about Is, for butterfat to the fanner. The prices! (for unsalted) ranged between: 160 s to* 162 s ordinary, and ,166s’ to 170 s for the choicest. It would not a,t these prices be sold at a, lo®s| to the farmer, but it undoubtedly left them, n, very small margin to work upon, and they could not face any further substantial drop with equanimity.