NEW ZEALAND BUTTER

Otago Daily Times, Issue 19902, 23 September 1926, Page 9

NEW ZEALAND BUTTER

HELD IN LONDON COLD STORES. SHARP CRITICISM EVOKED. ALLEGED GAMBLE FOR HIGHER PRICES. (Pres. Association —By L'elejjiaph—Copyright.) LONDON, September 21. Though definite statistics are not available, it is reliably estimated that there are 1,000,000 boxes q£ New Zealand butter in cold storage in Britain, and of those 700,000 were stored belore the commencement of the New Zealand Dairy Board s control. In addition, there are 127,000 boxes of Australian butter stored, including the now season's arrivals. Newspaper criticisms accuse the New Zealand factories of trying to squeeze the customer. It is stated that the quantity stored is 50 per cent, above that of 19 25> owing to trade depression. Australian butter is clearing steadily, but the holders of the New Zealand article are hanging on fpr better prices though they are paying 3s per hundredweight for storage monthly, it is largely in the nature of a gamble for enhanced prices, though many experts predict no hope of higher values, even if the coal strike ends soon. Wholesalers contend that prices are too high, and declare that many retailers . have been compelled to reduce their prices. Mr W. Grounds, chairman ot the Now Zealand Dairy Board, declares that there is no intention to exploit the consumer. The board’s only policy is to maintain a steady supply and to stabilise prices, Some traders predict that prices will break, involving losses upon the stored butter. —Sydnov Sun Cable. STORAGE IN LONDON. A DANGEROUS POLICY. (From Odb Own Correspondent.) WELLINGTON, September 22. Apropos of the storage of New Zealand butter in London to await a rise in price the last cabled estimate of New Zealand butter in store in London was 650.000 boxes. The figure of 1,000,000 now mentioned makes the outlook worse. The situation that has arisen gives point to the plea of the New Zealand Dairy Producers’ Board and of the New Zealand Meat Producers’ Board that statistics of produce in stores should be made available. This plea has been resisted in London, but the shadow of an unknown quantity of stored produce overhanging a market is always disturbing. The New Zealand Dairy Producers’ Board in its annual report states: —“The board has advocated steady selling to factories throughout the whole period. . . . The long and indiscriminate storage of supplies by factories and other interests has occasioned considerable anxiety, and this, together with the produce being held, possibly in questionable storage, has occasioned such reports as have been justified regarding the decline of our quality. It is important that all produce should go into consumption in the order of its manufacture. The reservations of stocks in New Zealand by (he Board to regulate shipments has not on any occasion been responsible for more than eight weeks' storage, although we know of stocks that have been held by owners or agents for a very much longer period. The New Zealand method of manufacture will enable its high quality to ho retained for a longer period will ever be necessary to store .it if it is allowed to go to the market in the order of manufacture.”