DAIRY PRODUCE.

Manawatu Standard, Volume LV, Issue 257, 27 September 1935, Page 5

DAIRY PRODUCE.

BUTTER MARKET FIRM. The Now Zealand Loan and Mercantile Agency Co., Ltd., have received the following advice from their London house, dated September 25:—Dairy produce (last rveek’s quotations in parentheses) :—Butter, New Zealand choicest salted, 114 sto 115 s per cwt. (107 sto lC8s). Market firm. Cheese: White and coloured, 57s to 57s 6d per cwt. (54s to 555. Market steady. LARGE SAVING. MARINE INSURANCE OF DAIRY PRODUCE. BOARD’S NEW CONTRACT. A substantial saving of approximately £IB,OOO a year on the marine insurance of butter and cheese exported, from New Zealand will be made under the terms which are to operate for the next three years. The London office of the Dairy Board (says a statement it has issued) has renewed the marine insurance contract for a further three years from September 1, 1935, on the following very favourable rates of premium : Rates under previous ReducNcw rates, contract, tion.

The above rates are to apply to shipments to the United Kingdom only. Tho contract protects the produce against “any risks whatsoever” from the time of receipt at tho factory, during manufacture, while in factory, during transit to grading store by road, rail or water, and continues tho protection until 30 days after the date of final discharge in the United Kingdom. Milk and/or cream is, however, protected from receipt at factory against fire risk only. Earthquake risks are covered, but should damage be caused by a further earthquake, underwriters ; reserve the right to charge an additional premium for earthquake risk thereafter All butter and cheese intended for export is covered under the contract, but produce made expressly for local sale is not covered.' Butter or cheese intended for export, which is 'subsequently diverted to local use, is covered until it is withdrawn from stores. Tho present premium for this risk is Is 3d per cent, for the first 30 days, plus 6d per cent, additional for each 30 days or part thereafter. All premiums arc payable in London, and are charged to tho London agent or consignee of the factory upon tho arrival of the stoamer carrying the produce. Produce is valued for insurance purposes as follows: —Consignments, at market price at time of arrival of carrying steamer at destination, plus 5 per cent.; f.o.b. sales, at costs to the buyer, plus 10 per cent. In tlie event of a loss prior to shipment, consignment produce is valued at actual value at time and place of loss, plus 5 per cent.; f.o.b. sales at cost plus 10 per cent. In the case of f.0.,b. sales the buyer is entitled to debit the selling factory with a portion of the premium representing the risk from in factory to f.o.b. This premium is chargeable at the same rate as that for export butter diverted to local use, namely, Is 3d per cent, for the first *3O days, plu6 fid per cent, additional for each 30 days or part thereafter.

WAR RISK PREMIUMS. _ The Daily Board reports that notification has been received from its underwriters that in accordance with the terms of the insurance agreement. ' protection against war risk cannot in the meantime continue without extra premium. The folowing arrangements have been made: All butter graded prior to September 30, and all cheese graded prior to October 21, .will be covered against war risk without any additional premium whenever shipped. Gradings of' butter and cheese on and after the specified .dates will.be subject to additional' premium as follows:—If shipped per s.s. Pt. Bowen or s.s. Mataroa, Is per cent. If shipped per s.s. Tongariro or s.s. Fordsdale, Is 3d per cent. Tho premium for war risk for departures after the Fordsdale will be mutually agreed upon by the board’s London office and the underwriters at tho date of departure from the Dominion of each vessel carrying dairy produce. AUSTRALIAN DAIRYING. BUTTER SHIPMENTS FALL. CONTROL OF THE INDUSTRY. One of the chief reasons for the rise in the price of butter on the London market was the decline in shipments from Australia during tho winter and early spring months. Tho total export of butter from Australia during July and August was only 4551 tons, compared with 5331 tons in the same two months last j-ear. Actually, shipments from Victoria and South Australia were higher, but this increase was more than offset by substantial reductions in tho New South Wales and Queensland totals.

A report from Australia states that some sections of the local industry are perturbed by the Commonwealth Government’s proposals for varying- the existing organisation of production and marketing controls. The present bodies, the Dairy Council and the Dairy Produce Export Board, control separate activities. The former attends to the production side and the second to marketing. It is said that these are entirely separate functions, and that the proposal to link them has little to commend it. More particularly, it is asserted that the proposals involve an increase in Governmental control of llie industry. A report issued recently by the chairman, of the Australian Dairy Board stated: “A question of importance that we on this side of the world do not fully visualise is the effect created on the other side of the world by tho talk of reconstituting our various boards. Full consideration should be given to this aspect, as it can be fully realised that such alterations may alter policies, causing supicion and hampering operations that have been in existence for many years, and destroying a goodwill that is essential for the benofit of a very important industry.” • :

CHICAGO WHEAT FUTURES. NEW YORK, Sopt. 25. Chicago forward wheat prices:—September. . 98J cents a bushel; December, 98J cents; May, 98j cents New York, cash, i 1 dollar 33i cents.

s d 6 cl p.o. Butter 4 6 6 4 29 Cheese 4 11 7 0 29.7