DAIRY PRODUCE PRICES.

New Zealand Herald, Volume LXVIII, Issue 20863, 4 May 1931, Page 5

DAIRY PRODUCE PRICES.

OUTLOOK FOR CHEESE. PRESENT RATES UNPROFITABLE. If the London market for cheese falls much lower, or even if it does not im- ] prove, most of the owners of cheese I factories in the Dominion will have to ] consider very seriously the advisability of i turning over to butter-making, said a leading exporter on Saturday. i To-day's price ori the London market 1 is equivalent to around 4=Jd a lb. free-on- 1 board at the main ports, and this price 1 leaves very little margin for the producer. Not for many years have prices ' been so low. Stocks of cheese in England are high and the demand continues weak with little indication of an early improvement, particularly in regard io New Zealand cheese. In the past year cheese has suffered more than most primary products in the fall in prices, as there are several factors which appear to operate in causing an easing of prices for this commodity. The depression of the English and Welsh mining industry has been a big factor. Cheese has always been an important item of diet for the miner, particularly in packed meals taken below the surface. With the large amount of unemployment in the mining districts at present the consumption of cheese has fallen off considerably. The cheapness of meat has been another factor. Whenever meat is cheap the demand for cheese falls off. The position in regard to butter is not. nearly so unsatisfactory, said another exporter, Mr. F. 11. Leonard. Sales were put through for May-June shipment last week on a basis of Is a lb. f.o.b. This indicates that traders in London have confidence in the market lifting in the near future, in spile of any temporary depression at the moment. A bright feature about the position is the comparatively short stocks held in London. Dealers apparenly are not prepared to store for any •length of time. Thus, the market is not likely to be depressed at any time with the prospect of unexpectedly heavy supplies being forced upon :t. LONDON BUTTER MARKET. LOCAL MERCHANTS' ADVICES. The New Zealand Producers' Co-opera-tive Marketing Association, Limited, has received the following cablegram from London, dated May I:—Butter market slow; New Zealand, 106s to 108s; unsalted, 110s to 114s; Danish, 120s to 121s. Cheese market quiet; white, 48s; coloured. 49s to 51s. Messrs. A. H. Turnbull and Co. have received the following cablegram from Messrs. W. Wecklel and Co., Ltd., dated London May I: —Danish butter, 120s to 121s; New Zealand uns'alted butter, 110s to 114s; New Zealand salted, 106s to 108s. Market slow. New Zealand cheese, white, 46s to 48s; New Zealand cheese, coloured, 49s to 51s; Canadian cheese, white and coloured, 72s to 745. Market quiet. AUSTRALIAN BUTIER. RECORD EXPORT PROBABLE. SYDNEY, May 2. The Australian record butter export of 2,500,000 boxes in 1924-25 is likely to be eclipsed this year, as only about 160,000 boxes are now required to reach the record total, and shipments from the Commonwealth are still proceeding. EMPIRE BUTTER PREFERRED. VOTING IN THE MIDLANDS. LONDON, May 1. The voting by housewives in the Midland district butter " buy-election," organised by the' Empire Dairy Council, resulted as follows : —Empire butter, 4321; foreign, 72. TARANAKI BUTTER SALES. OFFERS UP TO 12£ D PER LB. Considerable activity in the butter market in Taranaki is reported in tjie New Plymouth newspapers. Several v North Taranaki companies have sold the last of the season's butter at Is, some having disposed of their make to the end of May and others to the end of June. The amount of butter involved in these transactions is not very large. Sales have been made in South Taranaki up to 12 l-Bd, three firms being prepared to take fairly large quantities, a fact which bespeaks confidence in the market, as the price offered is at present in excess of market rates. The London buyers, however, have information about production in other parts of the world. The Home prices in the near future will depend largely on the amount of Continental butter on the market. 1 TRADE OF INDIA. BANK PROFITS DECLINE. The slackness of trade in India, largely the consequence of lack of confidence there, is reflected in the accounts of the Mercantile Bank of India. While the deposits have been more than maintained, indicative oi idle funds placed with the bank for safety, the " active" items of the balance-sheet exhibit a contraction. The amount of loans and advances was less, and employment had to be found more largely in investments, which increased by nearly £1,000,000, while the amount of cash in hand and with bankers went up in greater relative degree than the expansion of liabilities. While thus providing a strong liquid position, the earning power of the bank was naturally affected to some extent and the net profit for last year is shown at £213,340, compared with £257,459 in 1929. PREMIUM ON GOLD. POSITION IN AUSTRALIA. The premium on gold because of the high exchange rate on London is proving of considerable benefit to the goldmining industry in Western Australia. In 1930 producers in that State received a total • premium ot £90,000, and in the first three months of this year they received £IIO.OOO. The present premium is £3O 10s per cent., less £1 5s for shipping charges, or £29 5s per cent. net. This is equivalent to a premium of £l. 4s lOd an ounce of fine gold, or £1 2s 9(1 an ounce of standard gold.