THE BUTTER MARKET

Poverty Bay Herald, Volume LV, Issue 17227, 5 April 1930, Page 11

THE BUTTER MARKET

SEASON'S BIG DROP

CAUSES EXPLAINED

The butter market is now only about 10 per cent, above pre-war level after having dropped 50,s below the top price of the season in October. There has been a steady retrogression since then, and the table below shows how the market has declined since the beginning of the year, figures for corresponding dates of the two previous vears also being given:— 15)30. 1D29. .H'-K

Speaking of the causes of the weak state of the butter market, Mr. W. A. R. Leonard, of Auckland, referred to a severe shrinkage of the buying power of the British public as a result of a series of severe financial shocks, probably a repercussion of the Xew York Stock Exchange debacle. The crisis in Australia and Canada, and the severe unemployment in the United States were all linked with occurrences in Britain. In addition, there was abundant production in both hemispheres. The last northern summer had been very fruitful, the winter mild, and the spring early, pointing to a good dairy season this year. South Africa was increasing its supplies to the United Kingdom very rapidly, while both Australia and New Zealand had extremely large outputs for 102!)-30. The only hope he could see before the end of'the season was a contract ion of shipments, and he was pleased to .see the dairy board spreading its consignments. It was also important to reduce stocks, and when the depressing effect of large stocks had gone an improvement could bo hoped for.

,s. s. R, January 3... . IDS 184 Kit! January 17... . 154 185 1523 January 31... . 152$ 183 102 February 14.. . 151 179 164 February 28.. . 144i 170 17.'? Jlarch 14.... . 140 J 166 174 March 27 .... . 130 163 170