THE BUTTER MARKET.

New Zealand Herald, Volume LIX, Issue 18120, 19 June 1922, Page 6

THE BUTTER MARKET.

An explanation given for the recent sharp rise in the price of butter on the London market was ! that dry weather has been restricti ing the British, Irish and Coni tinental output and that fears of a j drought have caused panic buying. I Further increases have taken place, I however, although rain has fallen J and Danish production has been I well maintained. It is possible that ' the activity may indicate more or j less permanent conditions which may j increase the difficulties of New Zeal land shippers in gauging the market j so that they may obtain the best prices. It would almost appear that New Zealand butter, promptly shipped for the British winter demand, may nave to meet keener competition than if it were sold a few months later. The reason is that the butter output of the three great dairying countries of the southern hemisphere—New Zealand, Australia and the Argentine—is rapidly increasing, while the exportation to ! Britain from the butter-producing 1 countries of the northern hemisphere ; is far below the pre-war quantity. | Statistics for the year ending June | 30 last show \ that Denmark sent to Britain 47,580 tons of butter, against 89,000 tons in 1914. The exportation from Siberia which, in 1914 had) I reached 41,000 tons, was the prac- ; tically negligible quantity of 5001 ; tons. Sweden, which before the war {

sent from 16,000 to 18,000 tons annually, -was not represented at all, while France, which had reached the total of 11,000 tons in 19M, sent only 265 tons. Siberia is out of tho, market for an indefinite number of years and the other European countries are finding a better market for their butter on the Continent. Canadian supplies never were a serious factor in the London market, but even they fell last year to less than 1000.tons. A reverse movement has taken place, however, in the trade from the southern hemisphere. Australia last year shipped to England 38,214 tons, which is more than double the quantity of the previous year and [substantially greater than pre-war Sgures. New Zealand exported 28,085 tons, against 12,586 the previous year, and 16,609 in 1914, and up to March 31 of this year no less than 42,254 tons were graded at the various ports. The Argentine which, before the war, never sent to Britain more than 4400 tons, last year had a total of 19,423 tons, which was considerably higher than tho records of 1918 and 1919. Notwithstanding these increases, Britain's total importations for the year referred to were 60,000 tons short of the average pre-war total of about 200,000 tons, and it may be inferred that if British consumption is to return to normal, New Zealand and Australia will be called on for greater supplies. An increased consumption would not necessarily mean better returns for the farmers, however. If it is a fact that better prices are to be expected generally on the English summer market than on the winter market there would be a possibility of London merchants buying the butter during the rush from the south and holding it for the period of shortage. Such action would not be relished by New Zealand producers. Their remedy would be to hold themselves—a process which would involve extensive financing. |