LONDON BUTTER MARKET

Matamata Record, Volume XX, Issue 1855, 2 August 1937, Page 8

LONDON BUTTER MARKET

MR. LEESON’S REVIEW Why Price Was Higher This Year A falling off. in exports of box butter from other, countries had a favourable effect on the price of New Zealand butter during the past season, said Mr, J. E, Leeson, chairman of directors, in his address to shareholders ati the. annual meeting of the Morrinsville Co-operative Dairy Company on, Tuesday.. . “ We have heard the statement that our butter is now more equal in price to Danish butter tha;n it ever been;” said Mr. Lee Son. This' increase in’ the value Of New Zealand butter

for the season’ was' not in 'any way due to a marketing scheme but was due to the law of. siipply-and demand. There are two different markets for butter in England: : the box' market arid the cask market 1 . Australia/New Zealand’s principal competitor in the box’market, had experienced ‘ a : Or y seasbn, * arid 1 consequently her ; exports had fallen” off, l aS the following figures of import's into''Britain’ sho^:

1936. 1937. Tons. ‘ Tons. New Zealand . • 134,000 141,000 Australia .. .. 89,000 70,500 Other .Countries .. 249,000 269,000

In the 1934-1935 season Australia exported 117,000 tons of butter, buS production had since dropped because of droughts. Should Australian farmers have a good season and be able to increase exports there would be a reduction in prices - in the future, while any further decrease in. Australian production would enhance the value of New Zealand butter. Mr. Leeson continued: “ These figures indicate that we got a better price because of the shortage of Australian butter; but at the same time the output from foreign countries has increased considerably—by 20,000 tons. I think it is quite reasonable to attribute the increase in imports of foreign butter to the fact that the Primary Products Marketing Board decided to do without the services of seven or eight merchants in Britain who had been giving good service in the? distribution of New Zealand butter and to concentrate on other firms. But what did these firms do when they were deprived of New Zealand butter? They filled up their requirements with foreign butter. Do not you think it only reasonable that these firms would not go out of the business of selling butter but would obtain supplies of foreign butter and push the sale of it?”