BUTTER BELOW 70s

New Zealand Herald, Volume LXX, Issue 21454, 30 March 1933, Page 10

BUTTER BELOW 70s

RECORD LOW LEVEL

WEAK TONE OF MARKET RECENT GRADUAL DECLINE The pi'ico of New Zealand butter oil tho London market has fallen to the record low level of 68s to 70s per cwt., being barely equivalent to 8d per lb. f.o.b. A London cablegram quoting these prices gives the Australian values as 66s to 68s. Reports received by Auckland merchants yesterday from their London principals stated the market was weak, with a further declino possible. Values have fallen steadily since tho beginning of tho year, when Danish was quoted at 112s per cwt., and Now Zealand at 84s to B!ds. At the end of January New Zealand was 80s, Danish still being 112s. By tho beginning of the present month New Zealand had dropped to 76s and Danish was quoted at 104s. Tho present Now Zealand price, 695, compares with 91s for Danish. Since the middle of February, when restriction proposals wore first mado known, the market has been subject to marked fluctuations. When it was announced that restriction was probable tho market becamo activo and prices up to 78s per cwt. wero quoted. This was followed by a period of inactivity, when tho Australian Dairy Board decided against a quota. On March 8 New Zealand finest reached tho then lowest level of 70s to 72s per cwt. The market rose with tho leopcning of the restriction proposals and 80s was touched on March 16. Subsequently, further reaction set in and values have since shown a gradual falling tendency. Merchants have received tho following cablegrams from their London houses, dated March 28:— Mr. A. L. Lewis, from the AngloContinental Dairy Company, Limited.— Butter demoralised, 68s to 70s. Checso: White, 41s : coloured, 48s. New Zealand Producers' Co-operative Marketing Association, Limited.—Butter depressed and declining; cheese slow. New Zealand, fc9s to 70s; Danish, 90s to 92s Cheese: White, 40s to 41s; coloured, 48*. Joseph Nathan and Company, Limited —Butter: 69s to 70s. The market is weak. Cheese: White. 40s; coloured, 48s. The market is steadier. CONCERN IN LONDON REDUCED IMPORTS URGED OPINION OF TRADERS LONDON, March 28 A joint meeting of Australian and New Zealand butter importers discussed the present crisis in the butter market and its bearing upon future prospects. It was resolved as follows:—" That under the existing conditions tho meeting is of opinion that an improvement in prices of dairy produce cannot bo expected until imports have been reduced." The discussion revealed tho existence of a very definite opinion among traders that restrictions or limitations wero inevitablo if the industry was to be saved from ruin. Tho most, prompt action by Australia and New Zealand, it was believed, was necessary. Importers felt that the producers could rot have realised that limitation would not cause them serious hardship as based on the 1932-33 record season. Limitation, too, it was contended, would prevent foreign dumping. It is understood that the British Government fully sympathises with the Dominion producers, but its hands are tied by existing agreements, which render it impossible for it to make any better proposals to the Dominions than it has done. The whole question, it is felt, is now in tho Dominion producers' hands. Importers are awaiting the outcome with extreme anxiety. Meanwhile the delay is practically paralysing business.

IMPORTERS BLAMED RESTRICTION NOT INVOLVED NO EARLY EFFECT POSSIBLE [BY TELEGRAPH —PRES3 ASSOCIATION! WELLINGTON, Wednesday Commenting on tho cablegram from London, Mr. T. C. Brash, secretary of tho Dairy Produce Board, said: "It was quite evident that an attempt was being made on tho part of tho importers of Great Britain to stampede the producers of the Dominion and tho Commonwealth in connection with restrictions. "When it is considered that the proposed basis for restriction will not affect the quantities arriving in Great Britain to any extent until the end of 1933, it seems altogether beyond our comprehension that the present prico6 on the market should bo so influenced by tho decision of the producers." FOREIGN DUMPING INCREASE IN SUPPLIES QUANTITIES FROM RUSSIA According to advice received by an Auckland agent, London buyers arc seriously concerned regarding tho possibility of "dumping" by foreign countries in anticipation of quotas being arranged. It is stated that Continental competitors are following tho same policy adopted tariffs were introduced and arc diverting heavy supplies to Great Britain. Ono cablegram received this month stated: "Danish shipments to Britain are 20 per cent to 30 por cent higher than last year. Russia and tho Baltic are 'dumping' heavily, pending a quota decision. Delay will help these countries flood tho market, and make conditions difficult for next season's opening." A message received yesterday stated: "Statements from New Zealand misleading; adviso factorios immediate restriction necessary, otherwise will be flooded' out with Continental supply; ask factories" to press Government for prompt action."