DAIRY PRODUCE MARKET

Hawera Star, Volume LI, 20 February 1932, Page 4

DAIRY PRODUCE MARKET

BUTTER AND CHEESE REVIEW WEEK OF ACTIVITY PRICES EXPECTED TO KEEP UP. Butter Quotations. This week: 110 s to 112 s. Market quiet at the advance. Last week: 102 s to 104 s. Firm, with good demand. Last year: 122 s to 1245. Cheese Quotations. This week: White 635, coloured 645. Market quiet. Last week : White 625, coloured 635. Firm. Last year: 57s to 595. BUTTER..

During the week the market has been exceptionally active and the latest quotations report a quieter tone at the advance. Indications are that the advance will be maintained and that the market will improve during the next two months. As is usual with an active market, the buyers have been keenly interested. Offers have been mostly for Feb-ruary-March make. The first bids were at lOfd per lb and the highest indications to date are per lb, but even at the latter figure Taranaki butter factories are not responding to the agents’ bids. The question of any rise in the exchange rate has been overcome by the buyers; in some cases the offers include the provision that all rise in exchange shall be -to the factory’s account and others have offered to divide equally with the factories any future rise.

In view of the activity it may seem that- the pay-outs to cTeam suppliers, which will he about 9d per lb, may be a conservative one, but it must be remembered that the rise has only taken place this week and little produce has been sold at the figures quoted to-day. During January there has been a sharp decrease in the quantity of butter shipned as compared with January, 1931. The figures are: January. 1932, 9085 tons January. 1931. 13,436 tons, a decrease of 4351 tons. For the season. however, there is still an increase ■of 2492 tons. The total imports ’of butter to the United Kingdom from all sources during the month of January are in comparison with the last two years: January ... 1932. 1931. 1930. Tons. Tons. Tons. 35.559 33,770 32,151 Th is shows an increase of nearly 2000 tons as compared with last year.

CHEESE.

The cheese market is quiet and, while not having the firm active tone of earlier in tiie week, reports state that the prospects appear favourable. To-day prices are Is ahead of last Saturday, but earlier in the week quotations were reported at up to 65s to 665. F. 0.8. buyers have been active, but few factories are prepared to do business. The bids started at 6d per lb and one sale lias been reported at f.0.b., with rise in exchange shared between factory and buyer. Bids at this figure are not common, and the decision as to whether to sell at this price or await further developments is a very difficult one for _ factories to decide. It has been estimated that with the cheese already sold, and a sale of the afloats and balance of the season’s make at 6Jd (which is equal to a market of approximately 64s landed terms), a pay-out of about Is Id would be returned to the supplier. The statistical position is sound and this, together with the prospect of a lower export from New Zealand for the season, a reported shortage of English cheese, and a decline in Canadian exports, apparently places the cheese manufacturer in a sound position as regards his market supplies. The January figures just to hand show the total shipments from New Zealand in January. 1932. to he 10,302 tons, as compared with 12,520 tons for the same period 12 months ago, a decrease of 2218 tons for the month. The position as to the season’s shipments to date show a decrease of 2860 tons. Of January shipments 96 per cent was consigned and 4 per cent v sold as against 100 per cent consigned last Tear.

The total imports of cheese into the United Kingdom for January this year in comparison with previous seasons are: January ... 1932. 1931. . 1930. Tons. Tons. Tons. 12.14 S 11.667 16.891 The position of stocks, giving the total cheese in sight (including New Zealand and Australian stocks in the United Kingdom, stocks in New Zealand and stocks afloat) is as follows:

To-day’s pay-outs to suppliers of cheese factories range from lOd to 101 d per lb butter-fat. HIGHER PRICES FOR. DANISH * EXPLANATION TO BOARD.

(Bv Telegraph—Press Association). WELLINGTON, Feb. 19

Since Britain announced the imposition of a tariff of 10 per cent, against foreign dairy produce, to lie effective from March 1, New Zealand dairy producers have been especially interested in the course of the market. When the anouncement was made the market level for New Zealand butter was 965, with Danish at approximately 130 s. Marked activity has been shown since, and New Zealand producers welcomed the rise to 112 s for butter, with a corresponding increase in the price of cheese. They have, however, been puzzled to find an equal or even greater rise recorded in the price of the Danish article.

A cable received by the dairy board explains the position. The cablegram states that Denmark has apparently established a demand, in Britain for a .minimum quantity of 2060 tons of butter per week. The premium represented by to-day’s price of 150 s for Danish is due in the first instance to a greater number of bids from the Continent enabling Danish exporters to ask for higher prices from British buyers, and . in the second place to a probable increased demand from British buyers themselves, in anticipation of the 10 per cent, tariff becoming operative on March 1. The restrictions imposed by Germany and France against the importation of butter from other countries have been temporarily lifted, thins creatnicr increased Continental competition for Danish supplies.

1932 1931. 1930. Tons. Tons. Tons. 44.10-5 4S.052 39.557