CANADIAN BUTTER

New Zealand Herald, Volume LXIX, Issue 21349, 25 November 1932, Page 9

CANADIAN BUTTER

DECREASED PRODUCTION

PRICES REMAIN STAGNANT

ANOMALOUS POSITION SHOWN

[BY TELEGRAPH —SPECIAL REPORTER]

WELLINGTON, Thursday

" The surprising anomaly exists of an announced expected shortage of nearly 9.000,0001b. of butter in Canada, and yet prices remain stagnant. During October in the Eastern market the highest quality creamery butter has been quoted at 20j cx>nts at Montreal and 21£ in Toronto." These remarks are contained in an interesting review of th& butter position in Canada received by the Minister of Industries and Commerce, the Hon. R. Masters, from the New Zealand Trade Commissioner, Mr. J. W. Collins.

It is stated that trading has been slow and that buyers have shown little interest except for sufficient stock to fill immediate requirements. The market at Vancouver was somewhat better, highest grade prints realising 26 cents to retailers. In a comprehensive table, Mr. Collins shows that production for the eight months ended August 31 of this year for the whole of Canada totalled 147,353,000 pounds, . compared with 155,998,9661b. for the corresponding period of 1931, which represented a decrease of 5.5 per cent. In the month of August there was a Dominion decrease of 3,100,0001b.

Holdings had also declined considerably. A preliminary report of holdings at October 1 revealed the following position:— Creamery bntter, October 1, 1931, 40,659,2141b.; October 1, 1932, 32,466,149 pounds. Dairy butter, October 1, 1931, 419,5841b.; October 1, 1932, 247,6841b. The October 1 average for five years was 34,282,6241b. for creamery butter, and 630,5611b. for dairy butter. " This indicates a shortage of 8,193,000 pounds over last year's stock in the creamery grade and a shortage of nearly 1,813,0001b. this year ,on a five-year average," states the review.

The decrease in production continued in September in most of the provinces. Weather conditions had affected the Prairie and Western Provinces, but in Quebec and Ontario, two great butterproducing areas, the weather had continued to be milder than usual, The dry weather, combined with low prices for butter-fat, had checked the output, and this had contributed to a decline in stocks. >

Iu must not, however, be assumed that, because of the near approach of winter, the stock position will show further recessions. While prairio supplies may not increase, the production in Ontario and Quebec is dependent to a large extent on market prices. Ample and cheap winter foods are available for milch cows, and if the price of butter rises to 25 cents or more it is possible that this will bring about greatly increased supplies in the two provinces, which already provide the bulk of the butter for Eastern Canada."