BUTTER PRICE STEADY.

New Zealand Herald, Volume LXIX, Issue 21112, 20 February 1932, Page 10

BUTTER PRICE STEADY.

CONTINENTAL INFLUENCES. REDUCED DANISH OUTPUT. STRONG EUROPEAN DEMAND. After a rise of 3s a cut. during the week, the. London market for New Zealand butter has steadied at the advanced price of 112s a cwt. The position is again being dominated by the Continental demand and messages from Tooley Street contain heartening news for Now Zealand producers. As a result of low prices, the reduced spending power of Danish farmers, and their consequent inability to purchase winter fodder, is affecting production in that country. This is almost certain to benefit the market for Now Zealand dairy produce. Yesterday A. S. Paterson and Company, Limited, received a cablegram from J. and J. Lonsdale and Company (London), Limited, stating that the market for colonial butter is quiet at the advance. Danish is excited owing to a strong European demand and reduced production as a result of low prices prohibiting farmers from buying the usual quantity of feeding stuff. In commenting upon this message Paterson and Company states that Europe, and principally Germany, has been the main factor affecting the price of Danish butter for a long time. Critical Period in Denmark. The difficulty experienced by the Danish I farmer in purchasing a sufficient quani tity of winter fodder on account of the lower prices received in 1931 was accentuated by the fact, that the Danish harvest last year was not up to normal. Roughly the Danes produced about 75 per cent, of their fodder requirements, and imported about 25 per cent. The. present was tlie I most critical timo of the year for the Danish farmer as far as feeding was concerned, and his production must suffer unless ho had sufficient winter fodder until the green crops, mostly rye, were t available in about two or three months. Tho cheese market is not influenced by I these conditions, but nevertheless prices j are also advancing. During tho week | white cheese has moved up 5s a cwt., and I coloured 7s a cwt. The Tress Association message from London, dated February 18, states that butter was active earlier, but had quietened. Danish ia quoted at 154s owing to the Continental demand; choicest salted New Zealand, 110s to 112s; Australian, 107s to ICBs. Unsalted is quoted at Is to 2s premium. The cheeso market is quiet. New Zealand white, 635; coloured, 645; Australian, 61s to 625. In the corresponding week of January the market had developed an erratic tone as the result of Germany having levied duties upon imports to that country. Although Tooley Street merchants expected the market to fall, an advance of 2s a cwt. was registered. The only prices available quoted New Zealand finest at 94s to 93s a cwt.; Danish at 114s, and Australian at 92s to 945. Cheese was slow at sbs to 57s for New Zealand white, and 55s to 56s for coloured...Reports From Merchants. Merchants have received the following cablegrams from their London houses, given in parentheses, dated February 18 A. S. Paterson and Company, Limited (J. and J. Lonsdale, Limited): —Butter: Danish, 150s; New Zealand. 110s to 112s; Australian, 106s to 108s. Cheese: White, 635; coloured, 645. The market is easier. Dalgetv and Company, Limited (Samuel Page and Son, Limited). —Butter: New Zealand, finest salted, 110s to 112s; Danish, 152s to 1545; Australian, finest unsalted, 110s to 112s; finest salted, 106s to 108s; general average quality, 100s to 104s. Tho market is quiet, following an active demand mainly from tho Continent. Cheese: New Zealand white, 63s to 645; coloured, 64s to 655; Canadian, white and coloured, 66s to 70s; Australian, white, 63s to 655; coloured, 61s to 635. The market is quiet at the advance. W. W. Bowker (A. J. Mills and Company, Limited). —Butter: New Zealand, finest, 112s; firsts. 110s; unsalted, 116s to 118s; Danish, 150s; Australian, 108s to 110s. The market is quiet. Cheese: New Zealand, wh'te, 63s to 645; coloured, 64s to 655. The market is firm. HIGH PRICE OF DANISH. KEEN GENERAL DEMAND. inv TEI.EGRAI'H. — PRESS ASSOCIATION.] WELLIXOTON. Friday. Since Britain announced tho imposition of a, JO per cent, tariff against foreign dairy produce, to be, effective from March 1, New Zealand dairy producers have been specially interested in the course of the, market. They have welcomed the lisp to 112s per cwt. for butter, with a corresponding increase* in the price of cheese. They have, however, been puzzled to find an equal or even greater rise recorded in the price of the Danish art icle. A cablegram received by the New Zealand Dairy Board explains the position. The message states that Denmark has apparently established a demand in Britain for a minimum quantity of 2000 tons of butter a week. The premium represented by to-day's price of 150s for Danish is due in the first instance to the greater number of bids from the Continent. enabling Danish exporters to ask for higher prices from British buyers, and in the second place to a probable increased demand from British buyers themselves in anticipation of the 10 per cent, tariff becoming operative on March 1. The restrictions imposed by Germany and France against the importation ol butter from other countries have been temporarily lifted, thus creating an increased Continental competition for Danish supplies.