DAIRY PRODUCE.

Poverty Bay Herald, Volume XLIX, Issue 16091, 3 April 1923, Page 6

DAIRY PRODUCE.

PRICE VARIATIONS EXPLAINED,

STEADY DEMAND AT GOOD FIGURE.

(Special to the Herald.)

WELLINGTON, this day.

Prices of dairy produce on tho London market have shown some remarkable fluctuations during the last few weeks, but there is a strong belief in YVcllington commercial circles that in spite of the occasional drops, the demand for good quality butter and cheese is well established in England, anti that good returns will be secured on the average. The fluctuations are not likely to result in a generally low value for New Zealand’s output. This was the view taken by Mr. J. B. MeEwan, a well-known dairy produce exporter, who has just returned from an extensive tour through Canada and the United Kingdom. “Before the war,” remarked Mr. McEwan to your correspondent, “there was seldom a fluctuation of more than two or three shillings, but since the war the big buyers, particularly the multiple shops, have become a factor in Ihe market. When they think prices arc too high for butter and cheese, they hold off. Eventually they are forced to come into the market for their heavy requirements, and in order to properly cover themselves, they are forced to buy a little more than they need. Up go the values again, until the process is repeated. “Take for example the recent ad-

vance in butter. There was very keen buying all round, and a keen anxiety to get supplies. The price went up almost too high, but when requirements were covered, these buyers went right off the market, and tho drop resulted. Whether the situation will settle down to the easy fluctuations of pre-war times remains to be seen. I found tho general opinion in England was that there is going to be a very steady demand at very good prices for butter and cheese for some years to come. Tho consumptive demand appears to have increased, and with it a demand for higher quality. Although there has been a great deal of unemployment, and business has not been good, prices of our produce have been good. Ono thing which ought to be strongly emphasised is the great anxiety in England to improve our shipping arrangements, so that supplies from New Zealand will arrive steadily. Think of the Canadian system, with boats running to a definite time-table. The same thing exists in regard to Denmark. Then contrast this with two or three shipments from Now Zealand coming within a week or so, and then a gap. One importer of Danish butter told me that overy Monday morning he could be sure of his consignment being ready for him at Hull, fog or no fog.”