BUTTER PRICES

New Zealand Herald, Volume LXXV, Issue 23121, 20 August 1938, Page 11

BUTTER PRICES

• LOCAL MARKET BATES LONDON PARITY PREFERRED COMPANY CHAIRMAN'S VIEW ESTIMATED LOSS OF £200,000 [by telegraph—OWN correspondent] WHANGAREI, Friday "Before tho Government took control of the internal marketing of butter, the local sales were fixed on London parity," said Mr. E. S. Tremaine, chairman, at the annual meeting of the Whangarei Dairy Company, Limited. "No sound reason has yet been advanced why this policy should not continue. Had local sales for the past year been based on London parity, in place of being on a basis of the guaranteed price, it is estimated that at least an additional £200,000 would have accrued in tho dairy industry account in the form of a surplus for division to the producers." He said that for the 12 months ended June 30, 19.38, the approximate average London market price for butter was 120s per cwt., being about 14s higher than for the 1936-37 season. As a result of the average export butterrealisations being better than tho fixed guaranteed price basis of 112s, the dairy. industry account disclosed a surplug on export butter of £914,666, and also on local sales of £IOO,OOO, making a total of £1,014,666. "The supplementary payment' made by the Government'of .41d on butter and .21d on cheese absorbed £815,345," Mr. Tremaine continued. "To my mind the estimated surplus, when the final realisations of the past year's produce are known, will approximate £1,000,000 provided the market values hold. Tho recent London quotations of I2ls to 122s are equal to 14.43 d per lb., New Zealand ports, or .77d more than the guaranteed price. This represents about Id a lb. butter-fat.

"The guaranteed price for cheese haa been on an average above the London paritj*. Unfortunately, the quality of New Zealand cheese lias not met with the approval of the consumers in Britain, due, I think, to the method of separation, which leaves cracks in tho product. It is apparent" that tho standardised quality for cheese has not been satisfactory."

FALL IN LONDON NEW ZEALAND AT 120/MARKED RISE IN DANISH CHEESE PRICES ADVANCE Prices for New Zealand butter on the London market have again dropped during the past -week. Choicest salted is fiow quoted Is lower at 120s per cwt. The market is quiet, according to a Press Association message sent from London on Thursday. Australian salted butter has experienced a more marked decline to 116 a per cwt., a fall of 2s since last week. On the other hand, Danish has risen sharply to from 129s to 130s per cwt., a gain of 4s 6d on. the week. TJnsalted New Zealand is quoted aj> ,121s per cwt. and Australian at 117s. The market for cheese shows a hardening tendency, and there has been a further rise in prices. Both New Zealand white and coloured are now selling Is higher at 71s 6d per cwt. The price of Australian is 69s per cwt. Recent quotations and those of a year compare as follows: — Aug. 19 Aug. 12 July 15 Aug. 20 Butter— 1938 1938 1938 1937 Xew Zealand 120/- 121/- 122/- 114/6 Australian . 116/- 118/- 120/- 113/6 Danish . . 129/6 125/- 122/- 125/Cheese —N.Z.: White .. 71/6 70/6 69/9- • 67/6 Coloured .. 71/6 70/6 69/9 65/9 Canadian: , White .. 79/- 79/- 79/- 69/6 Coloured . . 79/- 79/- ■ 79/- 69^6 The basic guaranteed price for butter, including the recent additional payment, is equal to 13.66 d per lb. f.o'.b., and the current London quotation is equal to 14.30 d, New Zealand ports. The equivalent price for cheese is about 8.13 d per lb., compared with the preseut guaranteed price of 7.75 d. COMPENSATED PRINCIPLE FARMER'S DEFINITION EXPORTS AND IMPORTS [nV TELEGRAPH' —OWN CORRESPONDENT] - WHAKATANE, Friday The vexed question of the compensated price for dairy produce was raised at the annual meeting of the Opouriao Dairy Company, Limited, at Taneatua yesterday, when a shareholder, Mr. R. Kuddiek, stated that at the last meeting it was decided to contribute on the basis of Is a ton on butter and 6d a ton on cheese toward the campaign for the compensated price, but there was no sign in the balance-sheet that the payment had been made. The secretary said he had goneinto the question and found that according to the company's articles it would not be legal payment. The Rangitaiki company took legal advice and withheld payment for the same reason. The amount involved was about £3O, and if any supplier objected the payment would not be allowed, and the directors would be responsible. Mr. J. S. Rae: The directors don't seeiu to understand exactly what the compensated price is. Mr. Roddick: It is quite simple. Anyone who knew simple arithmetic could work it out. It is what our exports would bring back to the country in imports. There would be no taxation. The plan is as plain as daylight. Air. Rae: We are only in agreement with the directors of other factories. They don't understand it either. Why are the men advocating it not prepared to stand on the platform and explain it? ' The discussion then lapsed.