PRICE OF BUTTER

New Zealand Times, Volume LI, Issue 11783, 20 March 1924, Page 11

PRICE OF BUTTER

“NO REASON FOR ALARM.” REACTION IN GOOD SEASON. WELL ABOVE 1921-22 FIGURES Though the heavy fall in the pries of New Zealand butter on the English market justifies the description of dump, merchants handling dairy produce deprecate alarm. It is only by comparison with what the market baa been for the last few months that the latest prioes appear so low, one dairy produce exporter explained to a “Taranaki Herald’ ’ representative. “We have had a wonderful run,” he said. “Butter has been really very high all the season. A price of 170 a per owt. in England represents about Is 4d per lb. f.o.b. here, so that the price is not dawn to the pre-war level. Every hope is entertained that the market has seen its bottom and probably will recover somewhat.”

The present fall has not approached that which occurred during the season 1921-22, at one stage of which butter was selling in London at from 120 s to 130 a. Taking weekly quotations received from London during the ourrent season, on October 29 last the figures were 190 s to 1925. They fell to 186 s to 188 s, and then began to rise until the high point was reached on December BtE with 22a to 2245. Since then there has been some fluctuation until, the quotation at the close of last week was 168 s to 170 s (or about 2d per lb below the previous low point for this season), showing a decline of 14s for the week. There is nothing abnormal at this end, it was learned. The abnormality is at the other end in the form of a temporary over-supply of butter, due to heavy shipments arriving within a short period. The dislocation of bust ness caused by the recent dockers’ strike would also be a factor. This is the time of the year when the heavt est shipments are reaching England, and to a certain extent in a bunah. Wherever there is an excess of supply of any class of foodstuff there is a -olreeponding lowering of values. On the other hand, when supplies are scarce, as is the case with Danish butter at present, prices will rise ’o a high level. No heavy stocks of butter are lying In New Zealand at present. Shipments have gone forward very regularly and the balance of the season should be quite normal. Impending shipments probably will be equal to the autumn shipments of previous seasons. The reason for so great a disparity between the prices of New Zealand and Danish butter evidently is that Denmark, having an opportunity of selling a good deal of its produoe to continental customers, has been left with insufficient butter to meet the demands of regular customers in England—the people who will Have Danish butter, year m and year out, no matter what the price may be. It may be recalled that in April, 1921, the price of New Zealand butter in England soared to 2705, and this was followed by the greatest slump In the history of the trade, the fall amounting to 160 s within a few months. Since the market settled down after that sensational period prioes have fluctuated within reasonable limits.