DAIRY PRICES UP.

New Zealand Herald, Volume LXVIII, Issue 20794, 10 February 1931, Page 7

DAIRY PRICES UP.

SHILLING RISE IN BUTTER. CHEESE ALSO FIRMER. ARRIVALS FALLING OFF. A brighter tone in the London dairy produce market recorded early Inst week has been sustained, and a further slight rise in prices is reported in cablegrams received over the week-end. Although January was a heavy month for arrivals of New Zealand butter on the London market, supplies from other j southern hemisphere shipping centres had already started to fall off, and from now on arrival? from New Zealand should nlso tend to ease. This, and the fact that lower retail prices in England are stimulating I lie demand, is helping the New Zealand producer to even up on the extreme low prices of earlier in the season. On the present exchange rale to-day's London quotations for finest butter brjng the gross return to the New Zealand producer up to over ,125s a cwt. The cheese market also shows a decided improvement, quotations having moved up 2s a cwt. REPORTS OF MERCHANTS. Merchants report the receipt of oversens cablegrams as follows: Joseph Nathan and Company, Limited, from its London house, dated February 7:—Butter, 116s; market firm. Cheese, 535; market quiet. Dalgety and Company, Limited, from Samuel Page and Son, London, daled February 7:—Tho butter market is higher by Is a cwt.; New Zealand finest salted now 115s to 117s. The cheese market is higher by 2s a cwt.; New Zealand white *od coloured now 52s to 545. Amalgamated Dairies, Limited, from their London office:—Butter prices unchanged, finest 118s; retail position unchanged. Cheese prices unchanged, 53s to 545; retails unchanged. Leonard and Son, Limited, from A. C. Rowson, London, dated February 6:— Cheese, 545; the demand is improving and the market is very firm. Butter, first grade, 114s; finest, 116s; the demand is good, and the market very firm. New Zealand Dairy I'roduco Board from its London office, daled February 6: —Butter: New Zealand, salted, 114s to 116s (112s to 114s); unsalted, 116s to 120s (114s to 116s); first whey, 108s (108s); second whey, 106s (106s). Deliveries, New Zealand, this week, 2050 tons; in store, 4000 tons. Australian: Salted, Ills to 114s (108s to 110s); unsalted, 112s to 114s, ex 116s (110s to 113s). Deliveries, Australian, 2038 tons; in store, 1713 tons. Argentine: Unsalted, 110s to 114s, ex 116s (108s to 112s). Danish: 1365, f.o.b. (1325), 142s spot (138s). Dutch: Unsalted, 150s to 152s (142s to 1445). Polish: 108s (106s). Market firm. New Zealand retail unchanged, Is 3d; Danish, retail increased to Is sd.

Cheese. —Now Zealand: White and coloured, 51s to 535, ex 54s (53s to 545). Deliveries, New Zealand, this week, 22,500 crates; in store, 82,500 crates, includes 10,000 crates Tongariro and 14,000 crates Port Hunter. Australian: White, 50s to 51s (51s to 525); coloured, 49s to 50s (50s to 525). Market firmer. Retail prices unchanged. Relation standardised cheese to full cream same as last week, Is. Canadian: White and coloured, 70s to 76s up to 78s (74s to 76s white), (72s to 74s coloured). Deliveries, Canadian, 6648 boxes; in store, 171,221 boxes. Market slow. English finest farmers': 100s to 106s (100s to 106s). LONDON BUTTER MARKET. GOOD VOLUME OF BUSINESS. SALES TO THE FREE STATE. LONDON, Feb. 8. Although butter prices have not shown any great improvement, the tone of the market is sound, and a good volume of business is passing. It is estimated that the consumption of butter in Britain for some time past has been about 7000 tons a week. In addition there have been considerable sales of colonial butter to the Continent, where supplies are beginning to get short. Small quantities have also been sold to Canada, while a considerable amount has been taken by the Irish Free State, following the recent reduction in the duty.' It is believed that the Free State will import 1000 tons of Australian and New Zealand butter in the next two months. There is talk of a possible further reduction in the duty, with piofercnce for Empire products.

REVIEW OF PAST SEASON.

COSTS OF PRODUCTION.

SUPPLIERS PAID £19,523,344

During tho season 1929-30 butter-fat aggregating 288,462,6501b. was sent to the dairy factories of the Dominion and the total value of tho product was £24.039,98.1, of which £19,523,344 went to tho suppliers in the form of pav-out. Those figures are given in the Abstract of Statistics compiled by tho Government Statistician and cover the period of the ordinary financial year of the dairy companies which mostly ends in July. It is shown that the amount of butterfat received was 12 per cent, above that for tho previous year. Of this amount of butter-fat, 72 per cent, was utilised for butler-making. 26 per cent, was contained in milk used for the making ol cheese, and the remaining 2 per cent, was used for condensed and dried milk, etc. Butter-fat used for butter-making and cheese-making in 1929-30 was 15 per cent, and 2 per cent, respectively above tho figures recorded for 1928-29. Butterfat used for condensed and driod milkmaking increased 21 per cent. In comparing tho statistics of the dairying industry for 1929-30 with those for 1928-29 it is found that there were 491 factories in operation, or one more than in tho provious season. Tho number of persons who found employment in the. inchistry wns 4220, which whs slightly smaller than in tho protons vear. Salaries and wages absorbed £9j7,h30, which was 1 per cent, greater than in the previous year. The amount of moncj disbursed in the form of pay-out showed a decline of 2 per cent, on the previous season. , One interesting table provided by the Government Statistician shows t'lio average distribution of every £IOO received by dairy factories on account of their products in the season 1929-30. Ihe figures given are-Salaries and wages, 3.98; milk and cream cartage. 1.33; payout,, 81.22; materials, 2.72; other operating expenses. 4.26; marketing expenses. 4.82; undistributed surplus. 1.67. Marketing expenses, which annear to be relatively high, cover the following - Transport from factory to rail, from rail to ship, and cenera! f.o.h charges: ship ping and grading charges, including wharf dues, cool-storage charges, and marine freight and insurance; Dairy Produce Control Board levy; other marketing costs, including landing charges, commission and exchange.