DAIRY PRODUCE

Otago Daily Times, Issue 18765, 19 January 1923, Page 2

DAIRY PRODUCE

BUTTER AND CHEESE PRICES. THE ABSENT PROPHET. (Fbom Ode Own Correspondent.) LONDON, November 30. What shall wo make—butter or cheese? It is an old question and one which can never be answered until it is too late for factories to act upon advice—that is, too late for them to secure that harvest of profit they feel they might have secured. Fortunately, there is the consolation that had they known in time their action would have prevented any scarcity of cheese, and there would have been no high prices as there are to-day-owing largely to the, Canadian ■ ' ' ’■ Factories iri New Zealand seemed to have confined their attention almost entirely to butter making for September, October, and the greater part of November. Prices were relatively higher than for butter than for cheese, and no doubt, seeing that Government butter which was on the market this time last year had been got rid of, they anticipated that butter was going to be a very good proposition. Hence they neglected cheese. In the meantime, the Canadian supply of cheese fell short by 350,000 boxes on their last year's make, and there were very light stocks in this country for some months past. As for butter, not only people in New Zealand thought there might be a shortage, but buyers here were anxious, and prices ruled high. As soon as the * quantities on the water from New Zealand and Australia became public knowledge feeling became easier as to the future supplies, and this sentimental effect began to weaken the market. It is quite obvious, however, that if some prophet or seer had persuaded the New Zealand factories to concentrate on cheese some few months ago the Canadian deficiency would have been made up, and people to-day might have been asking why they had not been told there was to be a shortage of butter. Ten days ago best New Zealand butter was selling at 214 s to 216 s per cwt. To-day it is unsaleable at 196 s to 19Ss. Naturally, everyone is waiting to see if the price will drop, and no one wants to buy. , Over a .certain period lately some 420,000 boxes of butter came from the dominion as compared with 22,000 crates of cheese, so it is easy to see why buyers are not struggling to obtain supplies 'of the former. In the meantime, no doubt, following the dictates of commonsense, fortified by the advice of agents in London, factories have turned to manufacturing cheese, and the butter position for the next month or two will be controlled largely by the amount of cheese New Zealand is now making and the weather conditions in Australia. Shipments from Australia have not been quite so heavy as at one lime was anticipated. Up to Christmas, however, it is anticipated prices wil l remain fairly good. RETAIL CHEESE PRICES KEPT DOWN.

An interesting feature of the market change was that when it became public knowledge that the Canadian make- was a long way below the estimated stocks very little interest was taken in the fact. It is believed that people here thought the position would be righted by New Zealand. The dominion failed to come up to expectations, with the result that New Zealand cheese is now' selling at 126 s per cwt. Some of the larger multiple shops bought cheese from New Zealand of September and October make and at the same time they had fairly covered themselves for their Canadian supply. Consequently for some time they kept the retail price at lid to la. Now the retail -price is at Is 2d, which could bring no profit, at present wholesale prices. With meat at a reasonable price and beef especially cheap, Is 2d is the most that retailers can expect to get for their cheese, and should they be forced to put up the retail price the probable result would be that the public would refuse to buy, and a reaction would set in, the wholesale price falling with startling suddenness. The situation as between cheese, and cutter making lias its amusing side, for with a position such as at present exists there are naturally those who ask why did not someone on the spot tell us what was going to happen. In the first place, it would take three months for the result of advice, if followed, to lake effect. But agents inform me that any tendered advice, based on a slightly clearer knowledge of things on this side, is seldom acted upon. The factories prefer to trust to their own forecast. It is ia very comprehensible trait in human character.