DAIRY PRODUCE MARKET

New Zealand Herald, Volume LXI, Issue 18891, 13 December 1924, Page 13

DAIRY PRODUCE MARKET

REVIEW OF THE POSITION.

GERMANY'S LARGE PURCHASES.

DIRECT SHIPMENT TO EUROPE. [BY TELEGRAPH. r-OWN CORRESPONDENT.] HAMILTON. Friday. A review of the market for dairy produce, based on reports received from tho company's London manager, Mr. .7. B. Wright, was given by Mr. A. J. Sinclair, manager of the New Zealand Co-operative Dairy Company, Ltd., at Te Aroha yesterday. '

Dealing with the butter position, Mr. Sinclair stated that the Danish market had "gone wild - ' at certain periods during the last two months, having reached as high as 240s f.cxb. This was due to Germany taking about 600 tons a week. He said that the Danish price was very unstable, and sometimes "slumped" 20s at a time, so that it was not always safe for New Zealand butter to follow the Danish lead. Reports indicated that the general position of butter was sound until about Christmas, but there was considerable uncertainty concerning developments during tho first three months of the New Year. The price received for New Zealand butter in these months would be governed largely by the exports from Australia and Argentine. The quantities shipped from the Commonwealth this season were eclipsing all previous records, but the Argentine had not experienced quite so good a season. He considered that owing to the improved financial position of Germany, following the successful flotation of the £40,000,000 loan, there was every prospect of Germany continuing to buy 500 to 6CO tons of butter weekly, and this would have a very beneficial influence on the price received for the New Zealand product.

Prospect of French Demand. There was a prospect of a considerable demand arising in France early in the New Year, even although there were 9000 tons of French butter in cold store in October, and the French Government had prohibited the export of butter. These stocks would soon be exhausted, and the company was arranging for direct consignments to Dunkirk early in the New Year, as this port was a good centre for distribution to France, Switzerland and Southern Germany. Mr. Sinclair referred to the quantities of butter arriving in London from Siberia, and also' from Esthonin, Latvia and other Baltic States, but said that the shipments were comparatively small and the quality of the butter from these countries was such that it had no effect on the price received for the New Zealand product. He mentioned that when New Zealand butter was realising 220s to 2245. Siberian butter was selling at 160s to 1765. New Zealand dairy farmers would get some idea of the complexity of the marketing problem from the fact that developments in 14 dairying countries and States, spread over the two hemispheres, had a direct bearing on the price, of New Zealand produce. There was at present a surplus of American and Canadian butter, but the quality was inferior, and the large importing firms of the United Kingdom were unwilling to take the risk of buying from these countries. Liverpool, Manchester and the Midlands, however, had recently been taking a certain quantity of Canadian butter to make up for the failing-off in imports from Ireland, and he considered that the superiority of the New Zealand product should be systematically advertised in these centres. There was an over-supply of secondary butters in the United Kingdom, and Mr. Wright had expressed very strongly the opinion that New Zealand should export only superfine and first-grade butters, as these would tend to improve the general goodwill of the New Zealand product. Reports from London indicated that second-grade butter was sold to the consumer as New Zealand produce, and detrimentally affected the sale of the higher grades. Demand for Dominion Cheese.

Some interesting figures were submitted by Mr. Sinclair in regard to the cheese position. He said that in October the stocks of Canadian cheese held in Montreal amounted to 275,000 boxes, but the position had improved materially on the receipt of reports from reliable sources indicating that only 60 per cent, of this quantity would be available for export. In October there were 200,000 boxes of Canadian cheese held in London by importers, but the general cheese position had improved. Mr. Sinclair stated there was a much keener demand among merchants for the New Zealand product on account of its superior quality. A statement was made by Mr. Sinclair relating to a further supplementary payment to both butter and cheese suppliers of the company on last season's butter-fat. He said that the payment to the butter suppliers amounted to about £70,000, and would bo made on January 31. He pointed out that a considerable portion of this sum had accrued as a result of the policy of the company's London manager in regulating sales, and maintained that it was a striking proof of the benefits that would bo derived by the dairy farmers of New Zealand if the distribution of the whole of their dairy produce were regulated by a marketing committee in London, such as the New Zealand Dairy Produce Control Board proposed to set up.