LONDON DAIRY PRICES.

New Zealand Herald, Volume LXVIII, Issue 20976, 12 September 1931, Page 5

LONDON DAIRY PRICES.

butter market inactive.

NEW ZEALAND 110. TO 112n. LONDON, Sept. 10. The butter market is inactive, Danish is firmer at 130s; choicest salted New to 108s; unsalted sorts, Is to 2s premium. The cheese market is quiet. New Zealand, white, is quoted at 60s to 61s; coloured, 62s to 635; Australian white, 595; coloured, 60s.

Merchants have received the following cablegrams from their London houses, dated September 10: — Dalgety and Company, Limited.— Butter: New Zealand, finest salted, 108s to Ills; Danish, 122s to 1245; Australian, finest unsalted, 105s to 107s; finest salted, 104s to 106s: general average quality. 98s to 102s The market is quiet. Cheese: New Zealand, white, 59s to 61s; coloured, 60s to 625; Canadian, white, 60s to 61s; coloured, 60s to 625; c.i.f., 56s to 575; Australian, white, 58s to 595; coloured, 59s to 61s. The market is slow.

A. S. Paterson and Company, Limited. —The market is dull under the influence of political uncertainty. Danish. and other Continental is steadier. Butter: Danish, 130s: New Zealand, 110s to Ills; Australian, 105s. s Cheese: The Canadian market is weak and lower. New Zealand, white, 59s to 60s; coloured, 60s to 625. W. W Bowker.—Butter: New Zealand, finest, 110s to Ills; firsts, 109s; unsalted, 110s to 112s; Danish, 1265; Australian, 104s to 106s. Cheese: New Zealand, white, 59s to 60s; coloured, 61s to 625.

Norden and Company, Limited (from Glasgow). —Butter: New Zealand, 109s to 110s, equivalent to 11.38 d a lb. f.o.b. Auckland; excteptionally, Ills, equivalent to 11.49 d a lb, f.o.b. Auckland. The market continues quiet. Cheese: Coloured, 61s to 625; white, 69s to 60s, equivalent to 5.81 d and 5.49 d a lb. f.o.b. Auckland, respectively.

REVIEW OF MARKET. " DISAPPOINTING SETBACKS." INCREASE IN GRADING FIGURES. "No sooner had the butter market recovered the ground lost as a result of the effects of the German financial crisis than it was faced with the British political crisis, values aga : n falling from 115s on August 21 to 110s 6d on September 4," writes A. H. Turnbull arid Company, Ltd., in its latest review of the butter and cheese markets "These setbacks are most disappointing and disconcerting," the firm sta'es, "not only to factories, but also to the London houses who are trying to improve values for the end of the season shipments." The merchants add that their principals, W. Wed del and Company, Ltd., cabling this week from London, consider there is no real reason for the latest weakness in butter and put it down to pure sentiment following the political upset, intensified by the persistent offering of Australian new season as low as 102s c.i.f. Buyers were operating for current requirements only, notwithstanding the fact that the rate of consumption continued excellent and that spot stocks of colonial butters were considerably below last year. Grading figures for August again showed a good increase, 3637 tons as against 3038 for August, 1930, an estimated increase of 19.71 per cent. A point worthy of note was the estimated heavy arrivals of New Zealand butter in the United Kingdom in September, October and November, the month more particularly. It would need considerable improvement in the general position to withstand the heavy increase in supplies from the Southern Hemisphere as a whole between now and the end of the year. Gradings of cheese for August had been very low, only some tons being graded. It was understood that dual factories would revert to cheese immediately the supply of milk was sufficient.- In the meantime the larger quantities in store would be sufficient to keep all markets supplied. Cold and unfavourable weather conditions in England had curtailed consumption of cheese considerably. Nevertheless, the market had remained fairly steady.

RENOWN COLLIEKIES.

WORST YEARS PASSED. SERIOUS EFFECTS OF COAL WAR. The opinion that Renown Collieries, Ltd., had successfully overcome its most critical years was expressed by Mr. H. R. Mackenzie, chairman of directors, who presided at the sixth annual meeting of shareholders yesterday. Mr. Mackenzie said he hoped that financial conditions would soon improve and that shareholders would receive a dividend from their investment, which had giveij no result for some years. Details of the company's accounts for the year ended July 31 were in the Herald on August 29. In moving their adoption, Mr. Mackenzie said thg profit for the year at £3604 was considerably less than last year, owing to the lowering of prices through the coal-war and the economic position. Commencing in August, 1930, price-cutting speedily became so intensified that from the heginning of 1931 prices had varied from 20 per cent, to 60 per cent, below those previously charged. They had now been stabilised at rates somewhat more than 10 per cent, below those obtaining before the price-war started, thus allowing for the 10 per cent, reduction made in all wages and salaries. If the conditions agreed to were carried out by all concerned, it would result in more profitable working in the future. The difficult economic position had resulted in a ralling-off in the demand for house coal grade and a greater inquiry for kitchen coal, which had made it rather difficult at times to keep the mine working regularly. Cheap firewood had also greatly reduced sales. Although most Wnikato companies had experienced reduced outputs, the Renown Company's sales increased by 14j per cent, over last vear.

The year's accounts compared most favourably with those of last year. The sum of £4246 was provided for depreciation and royalties 'amounted to £4611. The lower prices ruling were reflected in the fact that although sales increased by over 13,000 tons, the gross profit earned was £3OOO less than last year. Had the same average price been maintained, a fail profit would have resulted and enabled a dividend to be paid. The mine had been maintained in first-class order and was now 'producing 700 tons daily. That could bo increased to 1000 tons when the necessity arrived. In reply to a shareholder, who expressed somo disappointment at the fact that another year had passed without payment of a dividend, Mr. Mackenzie said the directors had done everything possible to reduce overhead expenditure with good results. He had no hesitation in saying that if the coal-war had not started the company would have shown a profit of £20,000. The Renown Company had had no part in commencing price-cutting, but as a small coriipany it had had to put its shoulder to the wheel to hold on. The report and balance-sheet were adopted. The retiring directors, Messrs. D. Holderness and E. N. Orniiston, were reelected. A vote of thanks was accorded to the chairman, directors i&nd staff.