DAIRY PRODUCE

Otago Daily Times, Issue 18493, 2 March 1922, Page 8

DAIRY PRODUCE

GOVERNMENT BUTTER SOLD IN A WEEK, i DEMAND FROM CANADA. • i : THE CHEESEMARKET. r.-cv/c (FsoA 00b Own Correspondent.) LONDON, January 10. Seldom -has : there been such a sudden change as that seen in the . butter market during the past Jew days. Hardly a fortnight ago the butter merchants and salesmen were the most dismal of all the city men. There were 500,033 _ cases of Australian butter ■'awaiting disposal by the Board of Trade, and 550,000 boxes of New Zealknd: butter. For weeks Governments and private traders have been working towards some arrangement to prevent this accumulation from ■ ruining the present season’s prices'. The latest news prior to the closing of the mail this evening is that the Board of Trade have in the past few days disposed of an odd 20,000 tons of butter, and there remains in their hands only 1100 tons, 300 tons of which is New Zealand make. In these circumstances, <?f course, all proposed arrangements for taking .over the stock fall to the ground, and the Board of Trade are in a better financial position than was anticipated. Though it will take some time, to transfer the butter to the new owners, it is said that the sale is in response to a very genuine demand, and that the produce will very shortly pass into consumption. '

There are two reasons for this sudden change. ; One was; anticipated, and the other was entirely "unforeseen. . It was felt some weeks ago that so soon as the fental prices oame down, to a‘ reasonable level »the-public, demand for butter would increase by leaps and bounds.' Best New Zealand butter at Is 4d , per lb retail and other »kinds at Is 2d per lb are quite low . enough to tempt; a large public which has been subsisting on margarine to adapt the Change, and regular buttqr consumers have dispensed With that care and economy which previously marked their dealings with what had oe<;ome4 a precious commodity. The result has been felt immediately. The unforeseen factor was the Canadian market. Accidents often happen, and Canada (has oversold her own produce, largely to America. As a result, thousands of boxes of this season’s New Zealand butter have been transhipped from here and sent the Atlantic. In addition. New Zealand is, it is understod, selling direct to Canada and the United States. Thus in la week the face of the sky has changed from lowering clouds to bright sunshine. Best New Zealand description rose lost week from 116 s per owt to 130 s, at which price it has remained for several days. CHEESE IN SYMPATHY WITH BEEF. The cheese market is rather depressing. This is not accounted for by the ordinary laws of supply and demand, but is set down to conditions which are probably, not generally understood by the producers. Briefly, cheese prices are governed by beef prices. When beef rises _in price tlie attention of consumers is directed toward cheese; the demand increases, and the price rises in sympathy with beef. _ When beef prices fall consumers again give up cheese and transfer their demands to, beef. Demand for cheese promptly diminishes then, anj prices fall as well in sympathy with prices for beef. At the present time there ia a glut _of beef, and _so long as this stat© of affairs lasts_ there is little nope for much improvement in the cheese direction.