ENGLISH BUTTER MARKET

New Zealand Times, Volume LII, Issue 12163, 13 June 1925, Page 5

ENGLISH BUTTER MARKET

“BEARING” MOVEMENT ALLEGED DANISH SUPPLIES NOT CUT OFF LESSONS FOR CONTROL BOARD (Special to the “Times.”) PALMERSTON N., June 12. The true story of the recent butter slump has yet to be written. Information that has reached New Zealand through private channels confirms the suspicion that a systematic “bearing” movement was engineered in Great Britain, and it has its lessons for the Dairy Control Board, which was a helpless spectator during the silent conflict (states the agricultural editor of the “Manawatu Times”). A great and pleasant surprise was no doubt caused the butter producers by the unexpected - improvement in the London butter market recently, when prices jumped from 164 s to 172 s overnight, and made the end of the season look much rosier for the New Zealand producers. The immediate cause has been, of course, the transport strike in Denmark, but it is evident now that this

strike by no means is the sole reason. The strike has been settled now for over a week, and prices, instead of tumbling, as predicted, have actually further improved, the latest quotation for salted being 1765. It is perfectly obvious now that the information reaching New Zealand during the past fortnight was a good deal in the nature of bluff from interested parties, and the outcome of a systematic “bearing” movement in'Great Britain. It Was an attempt made by the wholesale and tbe big retail merchants operating chain stores to force down the price of the large quantities of butter held in England on behalf of colonial factories, and it all but succeeded. HAND-TO-HAND BUYING Both wholesalers and retailers in England have for weeks passed just existed on a hand-to-hand basis, and instead of, say, a fortnight’s supply, which would amount to approximamtely 12,000 tons, being held by merchants and retailers, as is usually the case, this butter ha,d to he held by the individual factories. The results and effects of the Danish strike were much more imaginary than real. It must not be thought that Danish butter entirely ceased coming into'England during the strike, because' this was not so. During the whole of the short stoppage a_ certain amount of Danish butter continued to Alter through, but it broke the “bearing.” Such was the uncertainty and fear of a complete stoppage that nobody could foresee how long the strike would last, and everybody rushed in to cover against a heavy rise, which no doubt would have eventuated had the strike lasted any time. That thb surplus of butter in Great Britain was more fictitious than real is fully proved by the fact that the week following the settlement of the strike Denmark rushed something like 4000 tons of butter into Great Britain. In addition to this quantity, which is more than double that of normal times, large quantities continued to arrive from New Zealand, Australia, and the Argentine, as well as Siberia, and yet, instead of the pessimistic forecast of a reaction being realised, values actually improved. REGULATE SHIPMENTS The writer says he may be excused for once more pointing out the moral of storing large quantifies of produce in England. If the Control Board will persist in this practice it will always be up against this difficulty. A continuous state of war will exist between the board and the trade, which naturally comprises a great number of speculators, and in nine cases out of ten the “bears” will heat the hoard. The consumer, and even the British Government will he on the side of the trade, and such a continuous wrangle is not in the best interests of Zealand business. Shipping should he so regulated as to allow a free.and continuous flow of New Zealand butter and cheese on the English markets without creating either s a glut or a scarcity. . S'uch a course will create the least friction, and will gradually eliminate the speculative element which has become a part of the system.