DAIRY PRODUCE

Otago Daily Times, Issue 18323, 13 August 1921, Page 6

DAIRY PRODUCE

THE SEASON’S PROSPECTS. (Fbou Oub Own Correspondent.) AUCKLAND, August, 12. The prospects for dairying are brighter to-day than they have been since the Imperial contract expired in March last, according to one holding an important official position in the industry. Ho said the present f.o.b. price of butter is 2s lid per lb, but factories are reluctant to soil, as the market shows signs of hardening. Cheese is also recovering rapidly, and even if the drought has broken in Great Britain it is too late for this to have any appreciable effect. At the moment it is impossible to forecast whether cheese or butter will be the better proposition this season, and it is fortunate, from a national point of view, that dairy produce has escaped the slump, which has affected wool and meat so disastrously. Asked if ho thought prices for dairy produce would reach last year’s figures, he said: "No. We do not expect to see any substantial increase on prices now ruling, and every penny will bo required if dairy farmers are to meet their obligations. Until the at Home is established the attitude of dairy companies will be one’ of caution. When the consigning season opens the advance payments will probably bo on a conservative basis. Dairy farmers must not expect a continuance of the prices which obtained for the export of butter last vear. An increase in the local market price is inevitable,’’ he added, ‘‘especially in view of the Government’s withdrawal of tho subsidy.”