OPTIMISTIC VIEW

New Zealand Herald, Volume LXXI, Issue 21698, 13 January 1934, Page 13

OPTIMISTIC VIEW

" RATES SHOULD IMPROVE " FAVOURABLE FACTOR NEEDED MARGARINE TRADE INVADED "In spite of the fact that the butter market has a downward tendency if anything and that ample supplies are in sight, we believe that prices should show some improvement in the near future," states a summary issued by A. S. Paterson and Company, Limited. "Any one really favourable factor will bring about a material improvement in the position." The firm states the question of supply and the self-supporting policies of certain importing countries were of major importance in causing the present unsatisfactory levels. There was a sufficiency of supplies on the market and ample quantities were being shipped by all producing countries. Importing countries, including Continental, were making continued efforts to become independent of importations to the greatest extent and in the shortest time.

" The stock position in the United Kingdom is sound and healthy," states the firm's summary. "However, if butter was not enjoying to a substantial degree a share of the market previously held by margarine, the stock position would probably not be anything like as healthy and we would probably have a real over-supply. As far as can be seen it is only by having the retail price of New Zealand butter in the United Kingdom in the vicinity of lOd per lb. that we are able to hold the trade we have won from margarine. Of those customers captured from margarine during the period of low prices there is a percentage which will probably continue to buy butter even with the latter selling at increased prices, but for the most part with aii increase in retail butter prices margarine at about 8d W.ill recapture at least to a substantial extent the trade previously lost. To cater for the section which will revert to margarine it is necessary to have practically one price level —a low one.

"It is difficult to find a solution for the problem of keeping the United Kingdom market readily absorbing supplies of butter, and at the same time raising the level of retail and wholesale prices so as to give the Empire producer a more renimierative price. National considerations, in New Zealand render unacceptable the principle of a quota, and Donmark, the principal foreign exporter of butter to the United Kingdom, is, under her present agreement, free, or practically free, from any real restriction of exports to the United Kingdom."

LOW ADVANCE PAYMENT DOWN TO 6D A POUND [from our own correspondent] HAMILTON, Friday The Hinuera Co-operative Dairy Company, Limited, has decided to advance its suppliers 6d per lb. for superfine butter-fat supplied for butter-making in December. The total distribution will amount to £7695. The advance is the lowest on record for the Waikato. REPORTS FROM MERCHANTS DETAILS OF QUOTATIONS Merchants have received the following cablegrams from their London houses, dated January 11: A. S. Paterson and Company, Limited, from J. and J. Lonsdale and Company (London), Limited.—Butter: New Zealand, 655; Australian, 635. The market is quiet. Buyers are inactive and the tendency is easier. Cheese: White, 46s to 46s 6d; coloured, 43s 6d. The market is slow.

Dalgetv and Company, Limited, from Samuel Page and Son. —Butter: New Zealand finest salted, 64s to 655; Danish, 84s to 86s; Australian finest unsalted, 63s to finest salted, 62s to 645; general average quality, 59s to 61s. Cheese: New Zealand, white, 48s; coloured, 445; Canadian, white and coloured, 46s to 525. Both markets are slow.

Mr. W. W. Bowker, from A. J, Mills and Company, Limited.—Butter; New Zealand finest, 655; firsts, 04s; unsalted, 70s to 725; Danish, 86s to 88s; Australian, 635. Cheese: New Zealand, white, 46s 6d to 475; coloured. 445. Both markets are slow. Joseph Nathan and Company, Limited, from Trengrouse and Nathan, Limited. —Butter, 655. Cheese, white, 46s to 475; coloured, 445. Both markets are quiet. Mr. L. McCartney, from Henry A. Lane and Company, Limited, London. —Butter: New Zealand, 655. The market is steady at the declins. Cheese-. White, 475; coloured, 445.