BUTTER AND CHEESE.

Poverty Bay Herald, Volume XLVII, Issue 15593, 9 August 1921, Page 7

BUTTER AND CHEESE.

EXPORT VALUES MOUNTING

Inquiries that are reaching New Zealand from the United Kingdom for butter and cheese indicate that the tendency of prices i.> still upwards. Factories could sell next, season's output at prices very much higher than seemed probable a few months ago, but it appears thai, they are in no hurry to do business. The "severe drought in Britain and In parts of Western Europe is producing conditions that are likely to be very favorable to the New Zealand dairy industry.

Aii otter of roughly ll£d per lb for next season's cheese has reached New Zealand. This is id per lb more than the best price paid by the Imperial Government during tho period of the war contracts, but factories are not being advised to accept it. The price mentioned represents on ;i parity basis about 132 s per cwt in London, where New Zealand cheese has been quoted withi.i the last few days at from 132 s to lc's per awl, with a"tendency upwards. Canadian cheese is quoted at from 136 s to KCs per cut. In considering these prices, it- has to be remembered that the, season of maximum production is closing on the other side of the world, and tint* winter prices will shortly, be ruling in Britain. It is not considered lively that New Zealand exporters Will make nuiny contracts in the immediate future. They probably will prefer to watch developments. Ihe best offer so far received for butter is stated to have been 2s, equivalent to 2s Id per lb f.o.b. for a period ending October 31 next. This offer apparently is based on the current Londu.i quotation for New Zealand first and second grade, from 259 sto 262 s per cwt. It represents roughly 2s 4d per Pi in London. 'The Imperial Government's ex store price for butter bought under the contract that expired on March 31 last is at present 2s 3J,d per lb, and exporters are of opinion that they can look for a better price for the new season's butter. A. reporter who made inquiries on the subject iwas informed that the, men most closely connected with the butter trade did not believe hat 2s Id per lb f.o.b. was the British "uvers" last ,word.

The upward movement in the batter and cheese markets is a very good thing for New Zealand as a whole, since it means that the dairy industry will be able again to counteract to some extent the financial effects of the slump in the wool and meat markets. But the rise in export values is goitirr to involve the local consumers in paying an inreased price for butter. The subsidy of 2d per lb now being paid by the Jovcrnment on butter sold for local sonsumplion will not be continued after the end of this month, and the local price will then require to be fixed on a basis of export value. The offer of 2s Id per lb f.o.b. represents a local retail rice, cash over the counter, of not less than 2s 4d ]tor lb. The merchants and retailors believe that the margin ought 'o be larger, and they are likely to renew their agitation on this point as soon :ts the prr.dueer gets a completely free market. The Government will not inert ere with export, values, but it will retain some control of profits made between the factory and tho consumer within New Zealand.—Dominion. DENTAL BY THE HIGH COMMISSIONER, po* Press Association.) WELLINGTON, last night. There appears to be an impression abroad in some quarters that the Imperial Government offered to purchase fhe New Zealand output of cheese next season at. a price of Hid lb. This is entirely hrorreet, as is shown by a cable hist received from the 'High Commissioner, reading as follows: "I understand that rumors are current in Now Zealand that the Imperial Government is eonsidering tho purchase of next season's output of butter and cheese. There is no truth in this."