King Country Chronicle. Saturday, December 17, 1927. THE DAIRY PRODUCE MARKETS.

King Country Chronicle, Volume XXII, Issue 2515, 17 December 1927, Page 4

King Country Chronicle. Saturday, December 17, 1927. THE DAIRY PRODUCE MARKETS.

When the London dairy produce markets dropped to zero last year, the anti-eontrollists were loud in their denunciations of the methods of the Dairy Control Board, and stated that the traders and the consumers in Britain had boycotted New Zealand produce on account of the Board attempting to replulato prices. No doubt there wen© a number of small traders or speculators—to use the correct term—who tried to demoralise the market for New Zealand butter and cheese, but the larger and more reputable firms did not take exception to the methods of the Board,''which, had it been left alone, might have stabilised the prices, not for last year alone, but for this and succeeding seasons.

By the present condition of the market, it seems that the speculators in London have again secured control of the situation. The statistical position in every way warrants a better price than is now being obtained in London. It has been estimated that at the end of the year there would be only about a week’s supply of butter in London. It is now the eve of the Christmas trade when there is generally a large increase of sales, and there appears to be no real economic reason for the sudden drop in prices for New Zealand butter and cheese. It is not likely that these will remain at their present lew level—the speculators will be responsible for the rise, which will only come when it suits themselves. If there had been a commensurate drop in Danish butter, there might bo some undiscovered reason for the slump in the New Zealand article, hut the Danish product is from 2os to 30s a cwt higher. It is only those who are exploiting tli©. dairy farmers ol this country who can explain this. There is one consoling factor in the present situation of the dairy produce of the Dominion—there is. a substantial increase in tli© volume of output. The prices for the first halt of tho season have been good, and the returns to' the dairy farmer more than satisfactory. The slump that has occurred. however, on the London matket is not due to economic conditions, which are in every way favourable to the producer. The Dairy Control Board lias now an opportunity to justify its existence by making a thorough investigation into the cause ot the slump. ff it can prove that the market is being “rigged ’ it can also justify its policy oi price fixation, which in the opinion of anti-control-lists had such disastrous effects on the dairy-export trade of the Dominion last year. i