PROBABLE VALUE

New Zealand Herald, Volume LXXV, Issue 23145, 17 September 1938, Page 17

PROBABLE VALUE

YIELD OVER £26,000,000 AUCKLAND DISTRICT'S SHARE TREND OF THE MARKET Tlio inerensod guaranteed price for butter and cheese will yield the industry from exports over £26,000,000 in the current season, or about €2.250,000 more than last season, assuming production remains approximately the same. Of this increase, '.veil over CI ,000,000 will accrue to the Auckland Province, Avhicli will receive more than half of the total income. The current wholesale price of butter on the London market is J2os per cwt., or -Is .'id per cut. below the London equivalent of the guaranteed price. On an f.o.b. basis, New Zealand ports, the current quotation is equal to 14.30 d per lb., against the guarantee of 11.89 d per lb. Cheese is quoted at 72s 9d per cwt., equal to 8.28 d per lb. f.0.b., against the guarantee of 8.42(1. The market has recently taken a downward tendency, which is unusual at this period of the year, when New Zealand supply is low. Last season, after an irregular opening around 117s to 120s per cwt., the wholesale price of New Zealand butter rose rapidly in October, reaching the peak of the season at 152s per cwt. on October 30. Values fell subsequently with equal rapidity, and the, market dropped below the guarantee level from the end of November to the end of February. during which time the Hush of thi! Dominion's production normally reaches the market. The lowest point of the season was reached on .January 29, at 106s per cwt., after which prices rose fairly steadily to a secondary peak at 13:5s per cwt. in the middle of May and fell away again to the present levels.

Prices for cheese did not fluctuate to the same, degree as those for butter, but the ■market remained below the guaranteed level from early December to the end of March. The highest price of the season was 71s per cwt. on November -L, and the lowest 61s per cwt. recorded on .December 24.

BELOW EXPECTATIONS

DECEPTION IN WAIKATO INCREASING COSTS FACTOR DIRECTORS DEFER, REMARKS [i KO.M CH'H OWN COHRKSPONDrNT] HAMILTON, Friday Directors of dairy companies in the Wa ilia to, when asked to comment on the new guaranteed price, referred to the decision of the South Auckland Dairy Association, which on Wednesday passed a resolution strongly recommending members to refrain from making any statement with regard to the prico until they had had an opportunity of perusing the advisory committee's report. All those who were approached to-day .said they felt bound by the association's resolution. Individual farmers referred particularly to the increased allowance provided for farm labour, and wondered when the costs were met whether they would be any better off than they were before. Disappointment that the price was not 2d per lb. butter-fat better than last year's figure was expressed by several farmers, who added that the Government apparently did not appreciate the extent t.o which costs had risen and were likely to rise. The president of the Waikato executive of the Farmers' Union, Mr. G. T. Crawley, said that the price was nowhere near what it should have been, considering the committee's recommendations. There appeared to bo no d( sire on the part of the Government t bring the price into line with increase costs. He did not understand what wa the u,se of the committee if its recom mendations were not adopted. It wa expected that the price would be in creased by at least 2d per lb. buttei fat over fast season's figure, he added

COMPARISON OF RATES PRESENT AND PAST SEASONS THE QUALITY DIFFERENTIALS The following table shows the guaranteed f.o.b. purchase prices for butter and cheese announced yesterday by tlie Minister of Marketing, the Hon. W. Nash, together with the London equivalents, and compares them with the prices ruling for the 1937-38 season: — CREAMERY BUTTER Pence per lb. London equivalents New Shillings per rwt. Price 3037-38 3 938-3!) 1937-38 l-I.S'J 13.66 I'-Ms 3d llos CHEESE 8.-12 7.75 73s 9(1 68s 6d The full range of quality differentials fixed by the Government for the current season arc as follows: —Butter: Finest grade, HI points and over, 15.015 d; finest, 93 points and under 9-1, basic price, ll.89d; first grade, 92 points •and under 93, 14.8275 d; first grade, 90 points and under 92, 14.64(1; second grade, 14.14 d. Whey Butter.—First grade, 13.89(1; second grade, 13.39 d. Cheese. —Finest grade, 94 points and over, 8.i)7625d; finest grade, 93 points ami under 94. 8.545 d; first grade, 92 points and under 93, basic price, 8.42(1; first grade, 91' points and under 92, 8.3575(1; second grade, 8.17 d.