BUTTER OUTPUT

Nelson Evening Mail, Volume LVI, 30 December 1924, Page 4

BUTTER OUTPUT

LOWER, PRICES EXPECTED

A warning to butter producers to expect lower prices in future was given at Hamilton by Mr. Goodfellovv, managing director of the New Zealand Co-op. Dairy Co., in commenting upon the reduction of Id per,.lb in the local .price, and describing, as unjustified, forward offers to purchase February shipments at l/6§ per lb. In response to an enquiry tiie London manager of the company repudiated tiie faiicy price of 1/63- and said London merchants’ ideas of February value were 1/4,-. The accuracy of tiie alleged offer, therefore, was seriously questioned. The world’s statistical position supported a conservative view of the butter position. The United States had 26,000 tons more butter in store at present, than at this time lastyear. Australia was enjoying a wonderfully productive season, and would export at least double last year’s total. The allotments of space from New Zealand showed that provision had been made for landing 884,606 boxes of New Zealand butter on the London market throughout January, February and March. This compared with an average of approximately 84,000 boxes in the same period throughout the last three seasons, and would' constitute about 45 per cent, of Great. Britain’s total imports for that period. Producers, therefore, would seo that -unless some unexpected improvement in (he statistical or general position was effected, reduced prices in the near future would bo certain. It. was unfortunate that in New Zealand’s period of heaviest supply prices were always lowest simply because no attempt was made to spread delivery or regulate the weight of supply upon the market. Tiie only favourable factors in the situation were that the Argentine was experiencing a dry spell, and Germany was now buying butter. If the Continental demand continued, lie anticipated that. New Zealand butted made in November and December would realise about 1/4 on marketing, or about 2d higher than was secured in the same months of production last season.