OUTLOOK FOR BUTTER.

New Zealand Herald, Volume LX, Issue 18567, 27 November 1923, Page 8

OUTLOOK FOR BUTTER.

ENCOURAGING PROSPECTS.

GOOD RETURNS ANTICIPATED

INQUIRY FROM AMERICA. Good prices for butter, including the i peak output of the season, appear to be assured. This opinion was expressed yesterday by an expert after comparing the present conditions with those of last season. The volume of butter that would reach the London market by Christmas, he said, was substantially less than the amount . shipped from the Dominion lam. year. Including the quantity carried by the Rotorua, which was now due at London, the shipments that would reach the ! market by the end of December totalled 253,851 'boxes, compared with over 300,000 boxes for approximately the same period of last year. A review of the market position last year he said, showed that the first shipment from New Zealand reached London about a month later than the first shipment this season and the market dropped to 1735. per cwt. Notwithstanding further heavy arrivals the market recovered and stood at 187s per cwt, by the end of the vear. This season several shipments had already' been marketed at prices ranging from 190s per cwt. to 208s per cwt., so that this season's returns to date should be considerably better than those of last season for the similar period. With the definite assurance of a substantial decline in the Australian output, continued the speaker, producers in the Dominion had every reason to look forward to good return's at least up to tho end of January. There appeared to be no likelihood of any substantial drop in price even after "the period mentioned. The large additional population that would be attracted to Britain by the opening of the Empire Exhibition would mean a greatly increased butter consumption, which should prevent any material drop in prices even when the production of the Northern Hemisphere became available. A factor that had to be considered, he added, was the purchasing power of the British public. Experience had shown that when the retail price of butter in Britain exceeded 2s per lb. consumption greatly diminished and prices had to bo lowered to stimulate demand. Butter had now reached tho 2s standard in Britain, and if the wholesale price went much beyond the current quotation of 210s per cwt. a rise in the retail figure would have to be made. Safety for the producer appeared to be in refraining .from any endeavour to force the market beyond * the present very satisfactory price. Another feature that encouraged the hop© that good returns would be made this season, added tht speaker, was that firm inquiry had been made locally by American buyers lor butter during January, Februasj* and March.