SECOND EDITION BUTTER IMPROVEMENT

Poverty Bay Herald, Volume LV, Issue 17440, 11 December 1930, Page 8

SECOND EDITION BUTTER IMPROVEMENT

ADVANCE OF 6S A CWT. SHORTAGE TOR CHRISTMAS FURTHER RISE PREDICTED An advance of 6s per cwt. is reported in tho London butter market in advice received bv the New Zealand Loan and Mercantile Agency Co., Ltd., while other sources presage a further rise. The firm reports receiving the following atfviiJe from London, under yosterday’s date: “Butter, choicest sailed, shortage of supplies available for Christmas trade, 110 s to 112 s. Cheese, white '6os to 635, colored 60s. Market steady.” Last week’s, business closed with the market firm, following an active demand, according to the Dairy Produce Board’s cable message, when New Zealand salted butter was quoted at 102 s to 106 s. Tho stocks were shown as slightly less than those carried at the corresponding period last year, following heavy deliveries, and it was also stated that the discharge of vessels was delayed owing to the fog. As a. result of tliis advice, which was published in the Herald on Tuesday, at least a small advance in values was expected. The news that the best quality butter has advanced by 6s is the most encouraging advice that has been received by dairymen for some time. Of course, the forward movement might only bo . temporary, and for the period only of the 'Christmas tirade, for it is indicated that the total December imports into the United Kingdom are expected to.exceed those for December las-t yearby 3000 to 4000 tons. .

Tor the week ended November 99 the market was as low as 98s to 104 s for New Zealand salted butter, so that in less than two weeks the market has advanced by 8s for the better qualities.

AGENTS' ACTIVITIES A belief that the present advance was not temporary, and that further improvement was likely, was expressed by Mr. J. H. Sunderland, secretary of the Kia Ora, Co-operative Dairy Co., Ltd., who was communicated with after tho receipt of the message quoted above. He said that a largo number of f.o.b. offers had been made during the past few days, the activities of agents in this connection being most marked, ono firm going so far as to telephone from Auckland. The highest offer to date was lbi|d per lb., equal to 114 s per cwt. A forward movement in the market was anticipated by the Kia Ora directors <m Monday, when a cable message was dispatched to the company's London agents to cease selling for the time being. The directors also 'deviated : frdm their tisual practice in regard to the advance payment. The rate of the advance is usually fixed by the directors at their meeting on the first Saturday in every month, but last Saturday no decision was leached in view of a possible -improvement in the market, tho matter being left 'With the chairman, Mr. Q. R. Moore, and the secretary. The rate of the advance for November supplies 'had not 'been iixed yet, but he expected to be in a position to make an announcement by the end of the week. Expressing his vievvs on the reason for the improvement, Mr. Sunderland said it was probably as a result of pressure brought to bear by the Tooley street merchants upon Amalgamated Dairies, Ltd., which had been induced, possibly, to follow tho more customary methods of marketing. A circular letter from Amalgamated Dairies, Ltd., just to hand, he added, supported this "theory, for it stated that the concern had Withdrawn nil limits temporarily. Their method of price ifixing appeared to have been the whole trouble in bringing New Zealand, butter down so low.

Prom nofa oh, Mr. Siilhnrlniid efcn ducted,' there should bo a. big improve mont in the market.