NEW ZEALAND BUTTER

New Zealand Times, Volume XLIX, Issue 11247, 27 June 1922, Page 4

NEW ZEALAND BUTTER

RECORD IN PRODUCTION RfLYLARKABLE CHANGES IN THE -UAIUvET, . DENMARK AS COMPETITOR. Some interesting facts mul figures upon the dairying industry' were contained in tlie twenty-eighth annual report of the National Hairy Association, Ltd., presented, at the annual meeting held last week. . It records that five butter factories and six cheese factories had been registered during the year, of which two butter and three cheese were at Auch■lund, one each butter at Taranaki and Canterbury, and one each chtese at Wellington and Otago. NEARLY 20,000 TONS INCREASE. Viewed from the standpoint of production, the season 1021-22 establishes a record. As the quantity consumed on the local market is more or less a fixed quantity, the grading figures may be accepted as reasonably representative. 'lhe figures issued by the Hairy Division show that 45,820 tons of butter and 59,630 tons of cheese were graded for the reason (nine compared with 33,430 tons and 52,060 tins respectively for the previous year. These figuree show an increase of 19,06.5 tons, or 37t per cent, on butter and 12 j per cent, on cheese. Qn a butter-fat basis it represents an increase of 26$ per cent, for the nine months. " The climatic conditions had been excellent, except for a shortage of min on the west coast of the North Island at the end of the summer. • •There had also been an increase in the number of cows being milked, and lower price® for buttei and dices*, had tended to encourars the ordinary dairyman to increase hia herd, and numbers of meat and wool producers pad turned their attention to dairying. EXCEPTIONAL SEASON FOR, PRICES. • While it was an unusual season • for produotion, it was even more so regarding prices. Offers of lljd were rnodo in July for the season's output of oheese, but were withdrawn in August, and with the exception of about 5000, the cheese produced was chipped to England on open consignment. In London, cheese was quoted cat I4os in July, but by the end of September had fallen to almost 100 s. To December it fluctuated from 78a bo 106 s, and in March white choeee dropped to 60s, went up to 100 s in April, but had since dropped to 76s (kid cofoured bo 90s; REMARKABLE BETTER CHANGES. But it is the butter market which ha* shown the greatest fluetations. In Jnly New Zealand butter stood as high, as 262 s on the London, market, with a fall to 220 s in September. During October and November the price . remained in the neighbourhood of 200 s to 20Se, but from. early- December the market declined rapidly, until by December 30th the price for salted New Zealand bad fallen a» low- as 118 b. At this date it was indicated that the Board of Tradp, who were

Handling the stock of Imperial butter, were going to clear at almost any -price --AwifovenScnt -waa-made by the producers to take over these stocks in conjunction with the Government and sonic of the merchants; but before a sale copld be completed several of the. larger merchants stepped in and purchased the whole of these stocks. Immediately the market improved, rising during January to 140 s, and the price remained in this neighbourhood'Until the-ruddle of March; when a fn+Hicr -riser'in** values commenced, reaching 196 sby April Ist, and remaining about 186 s to 188 s until the end of that month.

STRONG DANISH COMPETITION One of the features of the butter market, has been the high premium paid ler Danish butter, as much as OCXs per.ywt, being paid in excess of the New Zealand price. Store-a I reasons have been giveu, viz.: Short supplies of Danish; largo quantity sold on tho Continent, fear of the consumer that lie was buying old stocks of New Zealand, etc.; but none of these reasons seem .just to touch the spot, and it is quite evident that the organisation in Denmark which allows the producer to exercise control of tho prices, subject always to the law of supply and demand, is the main reason for their better price.