BUTTER AND CHEESE.

New Zealand Herald, Volume LIX, Issue 18170, 16 August 1922, Page 7

BUTTER AND CHEESE.

LONDON MARKET CONDITIONS

CAUSE OF FLUCTUATIONS.

POSITION REVIEWED BY EXPERT. The position of the butter market in Britain at the period when prices were at + he highest point reached during the aeascn in reviewed in a letter dated June 26, received from Mr. R. Ellison, the representative in London of the National Dairy Association. The writer states that' the remarkable change in market conditions has been more or less of a surprise. To-day it is difficult to state the value of New Zealand butter, ho says. Ten days ago the price was 184 a. It rose rapidly from this figure to 2365. During this time, all available stocks passed out of the hands of importers. Large quantities were purchased by multiple shop owners and. the large stores, also the blenders, who must, to protect themselves, be prepared to carry resisting stocks. So keen haß the demand been for -butter that the market is now bare of stocks. If even moderate quantities are required they can only be got from wholesale houses or large retailers who may be prepared to sell in limited quantities and take a profit on their purchases. "T

Causes of Rise in Values,. "The contributing causes to the present healthy butter position are to be found first of all in the clearing of the market of the Government accumulation of New Zealand and Australian butters. The fact that these stocks passed into the possession of several large importers had a steadying effect upon the market, even more so than if the stocks had passed from one Government to another Government. From this point, the butter market begun to mend and has continued to advance more or less ever since. The price at which this butter was bought allowed of a low retail price, and the publio once more got accustomed to use butter and neglected margarine. Another factor in bringing about the present condition is the loss of the Siberian and Russian supplies, which in the pre-war period were a factor in the trade. It will be some years before these countries can again be in a position to export any quantity of butter to the United Kingdom.

'"The spring generally was late in the Northern Hemisphere, and when the fine weather came it; set in dry and the country has been severely handicapped doe to restricted rainfall. The disturbed state ef Ireland has restricted the export from that country. For several months in the beginning of the year, the Continental countries were heavy buyers of butter from the United Kingdom, largely New Zealand and Australian.

Indications of Butter Shortage. "A combination of circumstances has therefore contributed to the creation of the position to*day. From present indications there is bound to b& a, shortage of butter until the shipments from Australia and New Zealand are resumed. We may have, at an early date, made reference to the changed conditions which are developing in regard to the butter supplies for this country. The increase in the make from Australia, New Zealand, South Africa and the . Argentine, would indicate the possibility of a condition arising in which butter would be cheaper during the winter months than during the summer in the United Kingdom. The Board of Trade figures show that from January 1 to May 31 this year 823,000 boxes of butter were, exported from the United Kingdom, and the sam« period last year only 13,000 boxes wen exported.

Eecovfery ot Cheese Market. 'The cheese market, after declining to 70s, suddenly recovered, due in some small extent to America buying on this market. The dry weather in the United Kingdom has also affected the itosition, and it must not be forgotten that the export of cheese from Canada to the United Kingdom was during the first four months of this year 94,248cwt., against 156.000cwfc. in the same neriod of 1921 and 198,000cwt. in 1920. 'It now looks- as if the balance of the New Zealand cheese for the present season will meet a fairly high market. The immediate future for both butter and chtsese is satisfactory." Since the letter was written there has been a gradual decline in butter prices in London. Last week the official quotations for New Zealand butter wen* 190s to 196s per cwt. A cablegram received from the National Dairy Association's representative stated that the market was dead owing to'prices having leen forced'too high. Other authorities attributed, the fall to the fact that krge supplies had been placed on the market by Denmark and other Continental conn; tries.