BUTTER FOR AMERICA.

New Zealand Herald, Volume LXVII, Issue 20642, 14 August 1930, Page 12

BUTTER FOR AMERICA.

SHIPMENT CANCELLED. OUTLOOK TOO UNCERTAIN. EFFECTS OF THE DROUGHT# Tho arrangement whereby the motorship Limerick was to load butter at Auckland shortly for Halifax as well as for London has been cancelled, according to advice received yesterday. The tentative reservation of space on the steamer for 20,000 boxes of butter, effected through the Dairy Produce Board, has also been withdrawn. Tlio reason for this action appears to bo that while several exporting interests aro hopeful, even sanguine, that the severe drought in America will lead to a demand for New Zealand butter, the immediate outlook is too uncertain to warrant the suggested shipment. Tho proposal was to ship tho butter under an optional bill of lading for either Halifax or London, in tho expectation that more would bo known by the time the Limerick reached Panama. However, a computation made yesterday showed that the current Montreal price was equivalent to only Is 1 3-8 d a pound, f.0.b., Auckland. In view of tho fact that abnormally large stocks were reported a few days ago to bo held in both Canada and the United States, it was decided not to go ahead with the plan. " If wo knew a liotle moro about the prospects, artd especially what the United States Government intends to do with the increased duties on dairy produce at the present juncture, it would be a different matter, but bo aro in the dark," said one exporter yesterday. "We want tho business if it is to bo had. Of course, if anyone cares to guarantee 20,000 boxes the arrangement can be reopened. Even so, tho Limdrick is not the last available ship. A fast vessel like tho Port Gisborne, which will leave Auckland about the first week in September, could land butter at Halifax before October 12, when, the new Canadian duty of 4 cents a pound comes into effect." Another exporter said that Canadian interests were probably holding off because they did not know what steps might be taken by tho United States to control prices of imported and homegrown foodstuffs, in view of the drought. They, therefore, could not tell what price they could afford to pay for New Zealand butter. On the other hand, it seemed likely that Canadian wheat speculators would now do very well out of tho crop now being held in store and this should increase the country's buying power. Even Is 2d a pound for New Zealand butter in Canada would be well worth having, because the London price to-day was not equal to Is Id . and showed no real prospect of rising. Developments in North America in the next week or so would be watched with very great interest.