DAIRY PRODUCE.

Otago Daily Times, Issue 18850, 1 May 1923, Page 5

DAIRY PRODUCE.

BUTTER PRICES REACH THE MAXIMUM. THE CHEESE SITUATION, From Odh Own- Cobeespondent.) LONDON, March 17. It was anticipated that Now Zealand butter prices would continue to rise steadily, as there- is not a very large oimntity in store or in .sight. To-day it has got to the very satisfactory figure of 200 s to 204 s per cwt, which should satisfy all concerned ;n its sale. Sellers, however, are holding out for 206 s to 208 s, with the result that hardly any sales are being made. The fact of the matter is that the general public is not inclined to pay more than 2s 2d per lb for their butter, and there has been a reversion to margarine. In addition there is a good deal of Danish butter available, arid this, fortunately for the consumers at least, acts as a brake to the soaring prices of the Now Zealand produce. If the dominion season holds out until Juno or July, as it seems likelv to do, ; the producers can look for good prices to continue, but it is unlikely that the public demand will be such as to enable the wholesale price to rise mudi above the 200 s level.

FINEST CHEESE AT FINEST PRICES.

A very active demand is being experienced for New Zealand cheese this season, and each shipment is cleared almost immediately on arrival. The total quantity received from New Zealand ‘during January and February was actually 2000 tons more than last year, but owing to the almost entire absence of Canadian, English, and any other competitive cheese. New Zealand has had the market to itself. The market price to-day—l46s to 148 s per cwt for white anfi 150 s to_ 152 s for coloured—does not leave a sufficiently goqd margin for retailing at Is 4d. Neither is the retail price of la 4cl sufficiently high to check the consumptive demand. Were the' price to bo advanced to Is 6d per lb no doubt there would be a sufficient falling off in demand to warrant the wholesale price dropping substantially, and thus providing the necessary margin of profit for all branches of the trade. The fact of the matter is that much of the cheese now being sold by the multiple stores was bought at 104 s to 106 s, c.i.f., and thus these large traders are able to keep the price down to a popular level, while at the same time reaping a splendid profit. Buyers who have had their stock at these low c.i.f. prices are speculating, and a good deal of cheese is changing hands at a profit. But the position- is extremely awkward for those who were not so fortunate as to make forward contracts. IV factor which is of the utmost importance in connection with the demand is the very fine quality and condition of all arrivals, and it is fair to say that probably the average quality of imported cljcese on offer to-day is, better than it has ever been before. Arrivals of New Zealand cheese during March and early April will be extremely small, having regard to requirements, which may mean a further rise in the market.

An increasing quantity will be available after the middle of April, and by May 1 the market should wear a different appearance from what it does now.