OUTPUT OF BUTTER

New Zealand Herald, Volume LXIX, Issue 21333, 7 November 1932, Page 5

OUTPUT OF BUTTER

INCREASED PRODUCTION LONDON BUYERS UNEASY LARGE QUANTITIES ABSORBED A report received in Auckland by the representative of a London dairy produce importing firm indicates that London buyers are becoming perturbed by the reports of largely-increased production in Now Zealand. At present the L on(^on market is not heavily supplied with New Zealand butter, but supplies are commencing to arrive in larger quantities, and this is expected to cause an easing in values. The output of tho leading 'dairying countries of tho world has increased tremendously during the last few years and the British market is being called upon to absorb greatly increased supplies. It was thought that saturation point had been reached several years ago, but low prices during the last two years have further stimulated consumption, with the result tiiat tho demand continues to equal the supply. Last year the quantity of, butter eaten by the people of Great Britain was at least 10 per cent greater than in any other year. Much of this gain was made at the expense of margarine, owing entirely to the fact that the retail price of butter had been reduced to a point where it competed favourably with its rival. In spite of Denmark's amazing progress, New Zealand has outstripped her principal competitor in the increasci of output, all of which has been absorbed by tho Dominion's only market—Great Britain. Since 1922 New Zealand's export of butter to the United Kingdom has risen from 43,184 tons to 87,493 tons in 1931, while over the same period Denmark's shipments increased from 67,313 tons to 118,149 tons. How consumption improved during those years is shown by the tremendous increase in the total importations to Great Britain, which, excluding Irish Free State butter, rose from 138,781 tons in 1922 to 337,370 tons in 1931. The present dairying season has opened most propitiously in Now Zealand and although there was an increase in butter exports from 65,496 tons to 87,493 tons last year, there is every promise of this record being eclipsed by this season's production, At tho same time, Australia is becoming a serious competitor. Last season was a bountiful one and at present previous results are being easily exceeded. All this extra production must be absorbed by the United Kingdom, since, as a result of altered conditions in Canada, both Australia's and New Zealand's shipments to that quarter have been considerably curtailed.

LOANS ON MORTGAGE A.M.P. SOCIETY'S INTEREST FURTHER REDUCTION UNLIKELY A statement in regard to interest charged by the Australian Mutual Provident Society was made by Sir Samuel Hordern, chairman, last week. Referring to the proposal of the New South Wales Government to decrease the rate charged by the society to borrowers to 4 per cent, he said fhat the society's present reduced rate was per cent, and after deduction of the Federal and State taxation the net rate was only 4 per cent, from which expenses must be deducted. It would, therefore, be realised that no further reduction could be made in the rate on loans on mortgage or to local bodies until a material alteration was made in taxation. For loans existing on October 1, 1931. the rate now charged by the society was from 5 per cent to £5 8s 6d per cent, in terms of the Financial Emergency Acts. The society valued its liabilities at the rate of 3 per cent, and must realise that rate net to keep within the bounds of safety. Some other life offices valued at per cent to 4 per cent. Sir Samuel Hordern said that, if the special Commonwealth property tax of 2s in the pound were taken off, the society would be prepared to consider a reduction to 5 per cent, provided there was no other adverse legislation.

GOVERNMENT LOAN NEW ISSUE AVAILABLE . The withdrawal from salo of the New Zealand Government 5 per cent debentures and inscribed stock having currency to September 1, 1937, has been effected, and from to-day a new 6 per cent issue, maturing on June 15, 1940, will be open for subscription. The new issue is not subject to stamp duty charge under the National Expenditure Adjustment Act, 1932. The bonds will be sold over the counter.

STOCK SALES NORTH AUCKLAND VALUES [from our own correspondent] . WHANGAREI. Saturday Dalgety and Company. Limited, report having held the usual sale at Papama yesterday, when there was a large yarding of all classes of cattle, which were sold at late rates. Good quality forward-condition grown bullocks made £3 17s Cd: three-year Hereford steers, £2 16s; store-conditioned three-year-old Shorthorn steers, £2 4s to £2 7s: mixed-coloured three-year-old steers, 30a to £2; fre9h store cows. 20s to 30s; empty cows, 10s to 17s Gd. The North Auckland Farmers' Co-opera-tive, Limited, reports that •at its usual monthly cattle sale at Paparoa yesterday, there was an exceptionally big yarding. including a very fine line of store bullocks. Competition was dull and there was a decline in prices. Dairy stock was yarded in average numbers and met with fair competition. Good dairy heifers made £5 5s to £(> 12s 6d; medium dairy heifer 9. £4 to £1 15s; store bullocks, very forward. £3 10s: good quality Hereford, 31-year bullocks. £2 10s to £-2 17s Gd: medium. £2 to £2 8s: two-year-old steers. 35s to £2 2s: yearling steers. 14s to 21s: store cows, fresh condition, 22s to 345: boner cows, Ss to ]"s; boner bulls, 25s to £2 12s Gd: grade Jersey bulls, £6 to £lO 10s; yearling Jersey heifers, £2 2s to £2 15s: smaller. 2Gi to £2; yearling Shorthorn heifers, .Ss to 17s; two-year-old Shorthorn heifers, 2Gs to 31s; weaner pigs, 12s to 14s: slips. 13s Gd to 17s. WAIHOU QUOTATIONS The Farmers' Co-operative Auctioneering Company, Limited, report having held their fortnightly stock salo at Waihou on Friday, when a medium yarding of sheen and cattle came forward. Competition for fat sheep was not keen, and a decided drop in values was recorded. A line of store wethers received more attention and fully maintained late quotations. The beef yarding comprised mostly second-quality cattle and these realised prices on a par with other centres. Young cattle and dairy cattle, of which the average number was penned, showed a slight decline in values. There was an extra large yarding of all. classes of pigs. Competition was only fair with prices showing an easing tendency. Quotations Sheep: Light fat wethers 10s: woolly fat .hoggets, 9s 2d to 10s 6d: fat lambs, 8s 3d; fat ewes. Gs Gd; store wethers. 8s to 9s. Cattle: Light fat steers £3 4a: fat cows, medium, £2 to i'2 IPs; light fat cows, £1 12s Gd to £1 16s: killable cows. £1 2s Gd to £1 Ss: fresh store cows. 18s to £1 4s- boners, 5s to 14s: two-year emptv heifers, £1 Is: good yearling heifers. £.. 14s to £3 Gs, medium sorts. £1 los to ±- 7s Gd; inferior sorts. 16s to £1 3s: service bulls. £3 5s to £(! 10s: potter bulls. 10s to £0 ios Pigs: Choppers, £1 to £2: heavy baconers. 3Gs to £2: medium baconers. 32s to 355; light baconers. 28s to 31s; heavy porkers. 20s to 295; medium porkers. 2,is to 255: light porkers. 18s to 225: large stores. 183 to 21s; smaller, 159 to 17s Gd: si ins. 9s" to 14s: best weaners. Ss to 10a; smaller weaners, 3s Gd to Gs Gd. BRITISH WAR LOAN British Wireless RUGBY, Nov. 4 British war loan, 3£ per cent (assented) is quoted to-day at £99 13s'9d, compared with £99 16s 3d oil October cl«-J