THE BUTTER MARKET

New Zealand Times, Volume L, Issue 11423, 20 January 1923, Page 2

THE BUTTER MARKET

LATEST LONDON REPORTS. REVIEW OF THE POSITION. An Auckland business man closely identified with the butter exnort market. referring to the recent High Commissioners cable regarding the market conditions at Home, said to a representative of the "Star”: —"In view of the heavy shipments of New Zealand butter that have already arrived in London, and the large quantities now on the way. the market there is steadier than might have been anticipated /under such circumstances. It is quite nossible that as later shinments arrive the market may ease a little more, but one reassuring fact is that buyers for the London market and offering in Auckland equivalent to Is 6Jd ner lb f.o.b. for February shipment. This is equivalent to the price ruling in London to-day,, and may be taken as evidence that the decline is likely to be only a temporary one. Supnlies of butter from the producing countries in the Northern Hemisphere do Pot reach London in much ouantity before April-May. and no doubt that is the reason why the purchases are being made in Auckland to-dav for that market, the buvers being content that the market will absorb -what is sent forward at a price which will prove remunerative. SHIPMENTS TO AMERICA.

"The heavy nroduotion of butter is being maintained in New Zealand as the season has been an manually favourable one for dairymen, owing to the frequent rains renewing the pastures. One cause for thinking nrices will be well maintained in London is the lesser ouantity of butter sent from Australia this season owing to the drought. An important factor in the position of the butter market this season is the heavy purchases made for shipment to the United States. These have been estimated at about 190.000 boxes, or about 5000 .tons. Part of this butter has been already shipped by the Tekoa. and & further lot will he taken towards the end of the month bv the Maimoa. If this butter is sold as New Zealand make, and is not mixed after arrival, it may lead to opening up a good market in America. As the butter has to face a tariff of 4d per lb, and was purchased here at Is 5d f.o.b- when freight and other cbaTges are added the landed cost in America will be Is lid per lb wholesale a penny under the retail price here to-day. It is hoped that the New Zealand butter may replace Danish on the American market, as it Is doing in the Midlands, England, on account of superior "duality. "As far as cheese is concerned, the prices ruling in London now are satisfactory. and factories with dual plants are now making that article in preference tp butter,”