BOOM ON LONDON DAIRY MARKET

Manawatu Times, Volume XLXI, Issue 3480, 14 December 1926, Page 11

BOOM ON LONDON DAIRY MARKET

Rapid Rise in Butter and Cheese Prices

TOO LARGE QUANTITIES IN DOMINION COOL STORES

An improved demand in Great Britain, as the result OX the settlement of the coal strike, and a threatened shortage in the Australian supply on account of a severe drought, may be regarded as the main reasons for the rapid advances of butter and cheese on the London market. It is all the more regrettable, therefore, to learn that the New Zealand Dairy Board has allowed an accumulation of 280,000 boxes of butter and 100,000 boxes of cheese to take place in New Zealand cool stores so early in ,the season, as most of this produce should have been shipped to reach Great Britain before, or shortly after, the Christmas season.

The “Times” prediction that New Zealand butter would reach 190 s by Christmas is gradually being realised. In fact there Is reason to believe that it may exceed this figure. The severe drought and bush fires in New South Wales and Queensland will have the effect of curtailing production in these States considerably. Australia may not only be prevented from exporting butter, but may have to import considerable quantities from New Zealand for domestic requirements. In fact a number of sales of Now Zealand butter have already been reported, although it is doubtful as to whether large parcels have actually changed hands. Within less than two weeks Danish butter has advanced from 170 sto 1925. at which price it is being quoted to-day. New Zealand prices have advanced rapidly to 1765, and with the disquieting cables from Australia there is every prospect of a further advance. -Factories should keep this fact in mind when contemplating offers from Sydney and Melbourne, as it behoves dairy companies, as well as the Dairy Produce Board, to get the best out of a rising market. Accumulation in New Zealand. For this reason it is to bo greatly regretted that the board allowed 7000 tons of butter and 7000 tons of choose to remain in New Zealand cool stores by November 30. This means that one-third of the total season’s output of butter and cheese was still in the Dominion by the end of hist month. The fact has been stressed repeatedly, and the members of the Dairy Produce Board must bo fully awaro of its importance, that it is absolutely essential that every available pound of butter should be shipped so as to reach London in time for the Christmas trade. Yet, in spite of all past experience, and in spite of the many costly lessons, the board has again failed to make adequate shipping arrangements for the most Important period of the season, resulting in the accumulation of 250,000 boxes of butter and 100,000 cratos of cheese, the major portion of widely should by now be well on its way to Groat Britain. If prices recede in January, > which is more than likely, the loss to producers may run into hundred thousands of pounds. Messrs A. H. Turnbull and Co. have received a cablegram from their principals, Messrs W. Weddel and Co., Ltd., dated London, December 10, as follows (last week’s quotations in parentheses):—Danish butter, 190 sto 192 s (182 s); New Zealand salted, 16Ss to 176 s (160sto Ififis); market firm. New Zealand cheese, white and coloured, 95s to 96s (93s to 945); market steady. Canadian, white and coloured,'9ss to 98s (92s to 9fis). The demand for Now Zealand butter was less active towards the end of the week. Messrs Dalgcty and Co., Ltd., have received the following cablegram from their London house, under dale December 10: —“Butter; Demand appears to be checked by increased prices asked. Very little business doing for new season’s for the moment.”