ABSORPTION OF BUTTER

New Zealand Herald, Volume LXXI, Issue 21932, 16 October 1934, Page 5

ABSORPTION OF BUTTER

BRITAIN'S HUGE TOTAL 10,000 TONS A WEEK OUTLOOK FOR PRICES It is estimated that the consumption of butter in Great Britain has now reached the huge total of 10,000 tons weekly, compared with a normal consumption about four or five years ago of from 5000 to 6000 tons. This means that in three weeks Great Britain absorbs as much as the yearly consumption in New Zealand, which has a high per capita figure. Unless the standard of living in Britain was raised in proportion, it was inevitable that the increase should be associated with low prices. Price movements have exerted a powerful influence on the capacity of the British market, proving how elastic is the demand for a commodity such as butter. Tho fall in prices has continually stimulated the demand and has averted any breakdown in the market following a glut of supplies. Only by this means has saturation point been avoided. The rate of absorption in Great Britain is now about 1000 tons weekly more than at this time last year, when conditions in the market were very different. There was a shortage of butter in London last year, due to a falling-off in tho Australian supply, and prices for a few months ranged between 90s and 110s per cwt. This year heavy European supplies caused an accumulation of stocks, which are now being disposed of at low rates. In addition, Australia is enjoying favourable spring weather, which has resulted in a substantial increase in supplies from that quarter. The movement in holdings of New Zealand butter in London shows that stocks are being reduced to manageable proportions. On July 13 New Zealand stocks amounted to the l»gh total of 13,160 tons. By the end of the month the total was 12,644 tons and at the end of August this was reduced to 11,277 tons. Further reduc- i tions were effected in September and j on September 28 a total of 9810 tons j was reported. At the end of tho first week this month the total was 9522 tons, which was reduced to 8841 tons at the end of last week. It is not payable to produce butter at present prices, but the industries in the various producing countries have been kept alive by means of subsidies and exchange adjustments. The averago price for New Zealand butter in London is now about 65s per cwt., which represents a pay-out to suppliers of between and 6j[d per lb. butter-fat. This is phenomenally low for the present time of the year. DEMAND STILL LACKING SALES AT LOW PRICES LONDON, Oct. 14 The Sun news service says butter stocks have shown a drop of 300,000 boxes in a fortnight, though actually only 269,000 boxes were withdrawn from store. Tooley Street expected that the withdrawals would result in a steady, even a rising, market, but the lack of demand continues. New Zealand and Australian dealers are actually selling at a shilling or two below nominal values. Australian is firmer than New Zealand, but a drop is expected at the end of the week. STOCK SALES TE ANGA CATTLE FAIR The New Zealand .Loan and Mercantile Agency Company, Limited, Hamilton, report on the T« Ansa spring cattle fair as follows:—The aalo generally surpassed those o! recent years at this centre, both as regards the entry handled and prices secured, which throughout were substantially better than last year's and fully up to those ruling at other recent store stock sales. The gathering of buyers was a large arid representative one, and the cattle were distributed to many parts of the South Auckland territory. Quotations:— Three-year prime fat Hereford bullocks, £$ 17s to £9 Is; medium quality, £7 to £8 10s; big-framed forwardconditioned three to four-year Shorthorn and Hereford steers, £5 to £0; good twoyear forward-conditioned steers, £4 to £4 Gs; best yearling to 11-year Hereford steers. £2 IPs to £3 6s; best yearling to lj-year Polled Angus steers, £3 to £3 ss; best yearling to ls-year Hereford heifers, £2 to £'2 17s; best yearling to Ij-year Polled Angus heifers, £2 16s to £3 12s; up to one-year Polled Angus steers, £1 18s to £2 ss; up t6 oneyear Polled Angus and Hereford steers, £1 18s to £2 ss; best two-year Polled Angus bulls, lOgns to lljgns; aged, Ggns to lOgns; best Hereford bulls, Bgns to llgns; others. 4gns to 7gns; 118 woolly ewe hoggets, £1 6s 8d; others, £1 2s to £1 ss; 76 wether woolly hoggets. £1 2s: 96 weth'iir woolly hoggets. £1 0s lid; 157 wether woolly hoggets, £1 Is. WHATAWHATA CLEARING SALE Dalgety and Company. Limited, report having held a clearing sale of dairy stock on account of Mrs. Graham, Whatawhata Road, on Thursday. There was a very large attendance and a very successful sale resulted. All good eound cowa were keenly competed for, and sold at up to £7. All sound cowa, in milk, made '£4 to £7: inferior cows, £2 15s to £3 15s; faulty cows. 20s to 355; Jersey bull, £4; aged farm horse. £2 15s; child's pony. £5 10a; sitore pigs. 225. VALUES AT KAMO [irom our own correspondent] WILANGAREI, Saturday The North Auckland Farmers' Co-opera-tive, Limited, held a stock sale at Kamo yesterday. There was a very large yarding, and competition was keen. Store steers were yarded in exceptionally large numbers. The decrease in prices at "Westfteld during the past few weeks was reflected in the values received, which were slightly easier than late rates. Dairy cattle were very hnrd to quit. Best dairy cows made £2 10s £4; medium, £1 Jos to £2 7s Gd; aged and backward, 15s to 22s Gd; best dairy heifers, to £i ss; medium, £2 to £2 15s: small and inferior, £1 to £1 17s Gd; light fat bullocks, £8 to £8 10a; light fat cows. £3 10s to £4 ss; fat Hereford heifers, £5 10s; fleshy cows, £2 to £2 15s; good Shorthorn store cows, £1 15, to £2 6s; empty two-year-old Shorthorn heifers, £2 7s Gd; boner cows, 12s to 18s- yearling pedigree Jersey bulls. 4gns to Ggns; aged dairy bulls, 2gns to 3gns; three-year-old Hereford steers, £3 10s to £3 IGs: three-year-old Shorthorn steers, £3 7b Gd to £3 14s; two-year-old Hereford steers, £- 17s Gd to £3 ss; two-year-old Shorthorn steers. £2 15s to £3 Is; three-year-old FneBian stoers, £3 lis; yearling Shorthorn steers. £2 to £2 12s; yearling Hereford steers, £2 15s to £3 Is; yearling Shorthorn heifers, 28s to 345; yearling Hereford heifers, 38s to 41s; fat shorn wethers, 21s to 22s 6d; forward shorn wether hoggets, Ins flu; fat ewes, in wool, 235; weaner pigs, 2os fid; small stores, 28s; lar&o stores, 28s »,o 345; porkers, £2 to £2 10s; sows to farrow. £.l to £4 Us: fonr-months-old pedigree lamworth boars, 43gns; four-months-old pedigree Tamworth bows, Bgns to 4igns. Dalgety. and Company, Limited, held a sale at ftamo on Thursday, when there was a large yarding of steers, prices being slightly ill advance of lato rates b irst quality beef cattle were yarded and prices wero slightly higher than at. the last sale. Springers were yarded in short numbers ( nnd prices wero on a par with late rates. , Medium steers made up to £4 10a; smaller steers, to i£3; heifers, to Bsj aprinffinfif i heifers, to £3 10s. Entries for pigs were fully up to the averago and prices showed a sharp rise on late rates. AVenners sold at from 18s to 28s. Sheep were yarded in more than average numbers, maiden ewes selling to 20s. An exceptionally good line of ewes and lambs realised 28s.