COMMERCIAL.

Hawke's Bay Tribune, Volume XII, Issue 242, 26 September 1922, Page 7

COMMERCIAL.

BUTTER AND CHEESE. Wellington, Sepfr. 26. The National Dairy Association have received the following cable from their London, office, dated September,23rd: “Butter: Market quiet. New Zealand salted 2165, New Zealand un salted 22-1 s, Australian salted 2065. Argentine salted 208 s Irish, .salted 2(X)s, Danish salted 2205. Cheese: Good demand. New Zealand white 06s, coloured 925.” SYDNEY WOOL SALES. NEW SEASON OPENS. Sydney, Sept. 25. The new season’s wool sales have commenced. There was a large attendance of buyers, with competition keen, but the clips were not up to the standard of the previous year’s shearing. The trade generally is optimistic, anticipating a good selling season now that the brokers are free from B.A.W.R.A. control. BUTTER AND CHEESE. NEXT SEASON’S PROSPECTS. A WORD OF WARNING. Hamilton, Sept. 23. Something in the nature of a warning was issued by Mr A. J. Sinclair, assistant manager of the N.Z. Co-opera-tive Dairy Co, in an address to the Orini cheese suppliers last night. Dealing with prospects for butter he said it jvas a matter for gratification that the present position was so firm. This might continue for a little time. There was a possibility .however, of a very sharp decline in the Old Country after Christmas. Shipping at this end was not very satisfactory, and it looked as though butter made in New Zealand in October would not reach England until after Christmas. If this eventuated London firms handling produce on consignment would certainly become co> servativc in their advances to New Zea land factories, and this would react on the monthly advance payments fur butter fat. Referring to the cheese position, the speaker said that J. B. Wright Co’s London manager believed cheese would be a good proposition at Home in January, February and March, but he emphasised great difficulty of accurately forecatsting markets. At the present time it looked, however, as though reasonable prices could be anticipated by cheese suppliers. Some of the company’s factories ara already manufacturing cheese. MEAT PRICES IN 1921-22. A DEPARTMENTAL REPORT. “The Department has investigated the prices charged during the year tor meat sold in various centres throughout the Dominion,” says the annual report of the Department of industries and Commerce. “A Noticeable decline took place in the wholesale prices for beef and mutton, and in response to various complaints a comprehensive inquiry was made to ascertain whether reasonable correlation existed between the whelesale and retail prices. “Except for an almost unavoidable lag in the retail price movements, butchers generally have not been making unreasonable! profits. In a number of towns the retail prices did not conform to the fall in wholesale rates, and in several cases, by negotiation with the butchers concerned, the Des partment effected reductions in prices ranging from Id to 3d per lb., chiefly in regard to beef. The decline in the value of by-products—hides, skins, tallow, etc.—has considerably reduced the gross return, anil this has been largely responsible for the keeping of retail prices higher than would have been the case had the return from byproducts been somewhere* near the level .of previous years. “Experience has shown that it would be not only exceedingly difficult but also inequitable to attempt any system of price fixation, since so much depends on the efficiency of the buying and selling organisation of those engaged in the trade. It was found in some instances where the prices had been approved by the prices investigation tribunals that the butchers still rigidly adhered to these prices, notwithstanding that subsequent conditions warranted a modification. As elasticity in the matter of responsiveness of retail price® of any movement in the wholesale price during a falling market is in the interest of the consumer. it has been found more satisfactory not to fix prices, but instead to take all possible steps to ensure that the facilities for free competition exist, and so to allow the law of supply and demand to effectively maintain prices at their proper level. “A fresh element of competition has been introduced by the establishment of meat-auction marts in the main towns, and in some of the country districts by farmers having undertaken the vending of meat direct to the consumer. Although this method of trading increases competition and tends to restrict the profit margin taken by orthodox butchery concerns, the net advantages of this now development. from the point of view of the consumer, are limited by reason of the difficulty in selecting small quantities or cuts of the particular quality desired.”