DAIRY PRODUCE MARKET.

Otago Witness, Issue 3860, 6 March 1928, Page 72

DAIRY PRODUCE MARKET.

BUTTER TO BE HELD. WELLINGTON, February 28. An interesting development in connection with the dairy produce export trade is that a number of large factories have decided to hold quantified of butter which were originally booked for export to the United Kingdom. In some quarters this action is regarded with surprise in view of the recent firming of the London market prices, and the prospect of a further advance. It- is understood that th e factories concerned have a considerable Dominion trade, and that their action is prompted by a desire to be in a position to fill the winter requirements of that trade. It- is usual for quantities of butter to be held, but the movement this season is earlier than in previous years. The quantities marked for holding materially affect the allotments of dairy produce made for ships due to load during the next few weeks, and will reduce the quantities in three ships alone by some 38,000 boxes of butter, leaving space which will have to be filled by some other means. The prolonged spell of dry weather has materially affected dairying production, and the effect is now plainly visible in the export trade. The gradings for the week ended February 18 were 58,200 boxes of butter, compared with 63,560 boxes for the corresponding week of last year, and 28,360 crates of cheese as against 30,000 crates for the corresponding period of last year. Apart from the holding of butter the decreased production has had the effect of reducing shipments very considerably, and a number of ships have been unable to get their allotments of space filled with butter and cheese. At the end of January butter shipments showed an increase of 13.5 per cent, and cheese an increase of 3.9 per cent, compared with last season. Opinions differ as to how far a favourable autumn will, check the falling off in shipments. In some quarters it is held that the total shipments for the season will show a decrease on last year’s, but it is authoritatively stated, on the other hand, that the shipments this season will about balance with those of last year.