OUTLOOK FOR PRODUCE.

New Zealand Herald, Volume LXIII, Issue 19508, 11 December 1926, Page 12

OUTLOOK FOR PRODUCE.

BUTTER AND CHEESE OUTPUT. ; PURCHASES BY AUSTRALIA. EFFECT OF THE DRY WEATHER. When interviewed regarding the recent rises in the price of butter and cheese on the London market, Mr. W. Goodfellow, managing director of the New Zealand Co-operative Dairy Company, Ltd., stated the improved position was undoubtedly largely due to the increase in the consumptive demand in Great Britain, due to the fact that the coalmiriers were now back at work.

As far as butter was concerned the statistical position was sound and if the 'Australian drought continued a really good price for New Zealand butter for the season was assured. Sydney merchants had already purchased a fair quantity of -butter for delivery during December to March and in the case of the New Zealand Co-operative Dairy Company up to Is 5d per lb, f.0.b., had been obtained.

It was regrettable that sales of butter had been made by a number of dairy companies in New Zealand at as low as Is 2j,d to Is 3id per lb., f.0.b., for finest quality, and Australia was still able to 'buy from some factories at Is 4jd. If the drought continued still higher prices ■would undoubtedly bo paid. On the other hand, if really heavy rait! s fell between now and Cluistmas ... Australia would produce sufficient butter for her autumn requirements, but would have little or nothing for export to London. It was therefore fllinost certain that the total exports of Australinn butter this season would bo a long way less than was anticipated a few

months ago. There was every probability that the cash distributed this year by the dairy companies of the Auckland Province would exceed that, of last season.

As regards .the local market there had never boon such -keen competition. Many factories had unfortunately adopted the policy of appointing local agents without retaining the right to fix the price, with the result that a great deal of price-cut-ting had been going on at the expense of the selling factory. Probably the Australian demand would, to a certain extent, rectify this unfortunate position and if so the local price would be raised in the near future.