MARKET FOR BUTTER

Manawatu Standard, Volume L, Issue 222, 15 August 1930, Page 7

MARKET FOR BUTTER

;!l| REVIEW 0F SEASONISOME RAPID CHANGES. UNUSUAL CIRCUMSTANCES. “The 1929-30 season will go down in 3 history of the dairying industry as unusual and remarkable one. Unaal, because of its low prices coupled fch increased production, and remarkle for the rapid changes which took ice in waxing and standardisation.” Thus states advice received in Palmiton North from a leading export Sfflweoncern regarding conditions for the IpSHßiarketing of New Zealand produce at ipfelfionie. i®fsll/‘‘This season has seen a world despline in nearly all primary products, #;p|and of these possibly butter has sufJjffifered the most,” adds the report. HRKMost sections of the dairy industry fMjrere prepared for gradual recession to fflwk lower scale of values, but few pre'j’ll'X;(dieted such a rapid slide as that which Ujvioccurred this season. Be that as it Kmpay, it is apparent that lower values ;will be the rule rather than the exand if we had to accept them sooner than we anticipated there at least some consolation in Shakeii|®peare when he says: ‘I wish the worst i;''j.i'jmy friend, for things at worst begin Uv:io mend.’ |||l THE BEST CUSTOMER. “One hears much these days of Imperial preference, but it is being rapidly vborne before us that our best cus- •• tomer is the Mother Country. Other Mimrofitable markets such as _ Australia ®[llmd latterly Canada are being slowly but surely closed to us, and it we are to. rely on the Homeland, then £l||yfchey too must rely on us to purchase IPSlsKeir goods to help them pay for ours. IptiEyery market has a saturation point, {f.'Rand whilst we do not admit that the

market has reached this point M insofar as our produce is concerned we Mranust admit that even the recent low . | 'retail prices failed to increase consump|e?Mpion, simply because the economic in England at the present If’Sj'time precludes the public ironi payfe'ying even these low prices. _ |iPi.“Th° butter market during the last weeks has remained steady, and ft®!;is quite in contrast to the almost daily fluctuations which have been a feature the market so long this season. ;'ij;A;i'liatest market advices quote the marKflfcket as a little easier; although we do S4ii§not anticipate any _ perceptible move- , ment either way in the meantime. ®PilJltimate stabilisation of the market Ifffißhould make itself apparent around ||#tbout 140s-142s per cwt. lit POSITION IN CANADA. 'V “The following from our Montreal j|§;; agents will no doubt be of interest: — the duty on New Zealand butter will be raised after October s|Sl2th unless there is some change made ;; r ;.;l:at tlie Empire Economic Conference pm'in London, Canada, as suggested in SjS many of our previous letters, will be Mfforced to purchase butter from New Iflef-vZealand during the coming winter, as •‘,l local production will not be sufficient to > take care of our consumptive requiretiV ments during the winter monthsi. Tor p&Hhis reason, we are looking forward j§Ss;to an active business during the winill;'ter months, although we are expecting |ffif; to have to overcome the fear that buySvers will have in making forward purtSchases on account of the unsatisfactory f«inarkets that have been experienced |§ji|sSuring the past year. At the present PKme it looks as if our production this I'lwlpgrear will be heavier than in 1929, al::ifi|ftsiough, on account of the peculiar &ffi®kather we have been having, anything likely to happen. We had an early and unusually warm weather in feljspifH.y brought on growth very rapidly, |it£§f|nrfc this early warm weather was fol;u';lbwed by a cool spell, which brought 'Wm'. sudden halt to the rapid growth, and then early in June the weather turned E#wery hot, without sufficient moisture in BMbetween times to properly look after I /‘growth. Western Canada is also com,‘plaining regarding lack of moisture, so /that unless we receive goodly rains in the near future, our production may not be as heavy as early indications suggested. Our butter market, apparently like the rest of the world, is in anything but a healthy condition. Prices are around eight to nine cents below last year, and while consumption is extremely good, the amount of butter still in storage and on the water from New Zealand discourages buyers from making any purchasers ahead.’ BUTTER FROM LATVIA. “Reports dealing with Latvia state : ‘ln view of the unfavourable outlook for the sale of Latvia butter in Germany because of the imminent enforcement of the increased duty on butter in that country, active propaganada is being conducted at present in Latvian agricultural circles for an increase in the production of cheese. It is pointed out that the raising of the duty on butter in Germany will considerably festrict Latvian butter exports to that country, the principal foreign market for Latvian butter, and that measures that will eliminate over-pro-duction of butter in Latvia must be | started in due time. There is an active „„ , Stand constant demand for cheese both ffia|in Germany and in England and cheese Sis less subject to price fluctuations than ® butter. In addition, the transition •; from butter to cheese production can be effected without large expenditures ' and it is believed that such a step would be profitable to the Latvian dairy industry.’ “Offers are conspicuous by their absence: nobody seems inclined to start the ball rolling, and we do not anticipate forward business of any magnitude taking place. Practically all buyU ers were badly hit with their early pur;,V chases at the beginning of last season, if and do not seem inclined to risk an--1 other dose. Possibly the 1930-31 seaK son will be largely a consigning seafeon.” TIAKITAHUNA COMPANY. ANNUAL MEETING TO-DAY. The eleventh annual meeting of the • Tiakitalruna Co-operative Dairy Com- ( pany. Ltd., was held this afternoon, Air M. Richardson (chairman of directors) presiding. The annual report was submitted as follows:—“The supply and output for the year was: Idiik received for cheesemaking, 117,2041b5; butterfat received for cheesemaking, 4,741.821b5; cheese manufactured, green weights, 4 tons, 0 cwt, 2qrs, 221bs; cheese manufactured, grader’s weights, 3 tons, 18 cwt, 0 qrs, 4 lbs; average yield of cheese to 1 pound of butterfat, green weights, 2.71; average yield of cheese to 1 pound of butterfat, grader’s weights, 2.69; average test, 4.30; average price paid for butterfat, Is 3.68 d ; butterfat supplied to Cheltenham Dairy Coy., 123,5381b5; casein curd supplied to N.Z. Casein Coy., Ltd., 174,2821b5; casein manufactured from curd, 11,100.741b5. The following directors retire: Messrs M. Richardson, H. J. Parker and E. P. Nielson. All the

directors are eligible, and are again offering their services. The auditor, Mr P. L. Sim, also retires, but offers himself for re-appointment.” The chairman made the following report: “The subscribed capital has increased by £6O and the paid up capital by £4l 11s 7d. The manufacture of casein has not proved at all successful owing to the cost of manufacture far exceeding that which we were led to believe. There are two matters which will claim your attention, one being the resolution, held over from the last annual meeting, of paying interest on share capital and the other supporting the New Zealand Pig Breeders’ Association. It was most regrettable that Mr Ross, soon after commencing with us, suffered a serious illness, as a result of being poisoned whilst in the employ of the company. He was away some months and this to a large extent disorganised the management of the factory, just after we had commenced the manufacture of casein. However we are glad to report Mr Ross lias thoroughly recovered. The outlook for the coming season is not bright, but I think the prospects for the manufacture of cheese arc decidedly better than those of butter. I anticipate that the supply of butterfat for tlie coming season will exceed that of the past. I ask for the co-operation and assistance of all suppliers, during the coming year, as it is only by mutual trust and confidence, that we are <roi n o- to tide over what lam afraid is going to be a trying year for all business men as well as farmers. I wish to thank the directors for their hearty support and co-operation during the past year.”