DAIRY MARKET REVIEW.

New Zealand Herald, Volume LXIV, Issue 19699, 27 July 1927, Page 13

DAIRY MARKET REVIEW.

STOCK POSITION SOUND.

FAVOURABLE PROSPEXTS.

NEW SELLING ORGANISATION^

[BY X?I®OaAPH. —OWN COEBESPONDENTiJ HAMILTON. Tuesday. In a review of the daliy market position in a circular to suppliers of the New Zealand Co-operativa Dairy Ltd., Mr. W. Goodfellow, managing director, said tha weak position of the London butter market was due to temporary overproduction in Denmark and other European countries. The stock position was sound and in America and Canada the produce in store war, considerably less than it was at this time last year. It was anticipated Canada would commence buying in August.

The present weekly consumption in the United Kingdom- was abnormally heavy and for this reason Mr. Goodfellow considered that prices should be higher, in spite of heavy importations. He added that he was forced to the conclusion that the depressing influence of the pool was still being felt. For several years New Zealand butter had been largely withheld from sale during the months of May, June and July, and released during August, September and October. This season, however, New Zealand butter was being sold as it arrived in competition with the produce of the Northern Hemisphere—with obvious results. The forward market outlook for cheese had improved somewhat recently, and London buyers were reported to have offered as high as B|d, f.0.b., for August, September and October make. The marked improvement industrially in England warranted the prediction that cheese would give a better return to the producers during the coming season. The casein market remained firm and sales were being made at very satisfactory prices. On the whole the outlook for the coming season was better than it-had been for several, years. Milk powder sales were steady, continued Mr. Goodfellow, and had been assisted by the recent sale of considerable parcels, for Australian consumption. The directors of the New Zealand Cooperative Dairy Company had recently entered into an agreement for the formation of a company to be known as the "Amalgamated Dairies, Limited," an organisation which was to be established for the control and sale of all the company's exportable dairy products, plus that of other co-operative companies. This organisation would endeavour to establish what was known as "group marketing," and although it was probably too late this season to secure the support of many other co-operative companies, there was good reason to anticipate that in future a large number would link up with Amalgamated Dairies, Limited. Absolute control had failed, concluded Mr. Goodfellow, and Amalgamated Dairies, Limited, had been formed to do by voluntary means the work that should have been accomI plished by the Dairy Produce Control Board.