DANISH BUTTER PRICES.

New Zealand Herald, Volume LXIV, Issue 19626, 3 May 1927, Page 10

DANISH BUTTER PRICES.

FURTHER DECLINE OF 2s. RECENT FALLING TENDENCY. FAVOURABLE NORTHERN SPRING. A further fall in the price of Danish butter on the London market is announced in a cablegram, dated April 30, which has been received by the New Zealand Co-operative Dairy Company, Limited, from its London office. The message states: —"Anchor, 1545. The market is fairly steady, but Danish has slumped to 151s f.0.b." This price is equivalent to approximately 158s in London, a decline of 2s on tho last previous quotation. Cables received during April show there has been a steady decline in the price of Danish produce. From April 6, when it was quoted at 186s, there has been a regular downward tendency, and a cablegram, dated April 27 showed its price at 168s. A further message dated April 28 placed Danish at 160s and New Zealand at 150s to 1525. Speaking of the position, Mr. W. A. E. Leonard, sibretary of the Auckland Butter Committee, said that all indications pointed to heavy spring producI tions in the northern hemisphere, with a consequent loading on the London market. An early spring had favoured production in Russia and Siberia, which to a certain extent supplied London. "Tho most depressing factor," continued Mr. Leonard, "is the anticipated carrv-over of New Zealand stocks. It is expected that at the present rate of sale there will be stocks carried over at the end of tho season equal to those at the end of last season, when butter was being held in anticipation of a rise. The Danes, who are intimately in touch with every movement in London, have evidently made a decisive gesture to clear their stocks. Recently they dropped their prices sharply in order to stimulate the demand, and it looks as though they are repeating the process. "One thing is quite certain, '5 he added; "if the price of Danish butter falls, further New Zealand prices will have to be reduced in order to compete." While expecting this to come about, he considered that later there would be a reaction, with prices tending upward. In his opinion 150s was probably about the figure at which the prices would stabilise. Another authority said that as Germany and France were at the present season self-supporting, Denmark was thus deprived of a large outlet. The Danish produce had been thrown on the English market and, as Danish butter had not the keeping qualities of New Zealand, the price had accordingly dropped. The fact that, in comparison with quotations for previous years, prices for Danish were lower, was attributed to the economic position in Britain. It indicated that the purchasing power of the British consumer bad been greatly affected by the recent coal strike. While it was impossible to say how far the position would affect New Zealand butter, he considered it was . practically certain the Dominion article would decline in sympathy, although not to the same extent. RATES IN WELLINGTON. AN INCREASE ANNOUNCED. [Br TELEGRAPH. —OWN COHUESPONDENT. 1 WELLINGTON. Monday. The local price of. butter advanced Id per lb. wholesale on Saturday with a corresponding inci "se in the retail price. A firmer tone on * London market and the approach of wint ir necessitating holding butter in store for the trade are the reasons given for the advance.