BUTTER GOING UP

Poverty Bay Herald, Volume LIX, Issue 17948, 28 November 1932, Page 4

BUTTER GOING UP

PHENOMENAL DROP ENDS

HIGHER CLOSING QUOTATIONS SOME UNUSUAL FEATURES News of a check in the downward movement in the butter market was received to-day, when it was reported that last week’s business in London closed firmer, with quotations 2s per cwt. higher. The peak of the last upward movement was reached on September 16. when the price range for New Zealand butter was from 112 sto 116 s. At first only first-grade butter was affected, finest, which was iu snort supply, remaining at the comparatively high level for about three weeks, when it. went clown to 112 s as the highest quotation; at that time first grade was selling as low as 100 s. For a short period the downward movement appeared to have been stopped, but it was resumed more quick!v than before, and by the end of last week the price, range was 85s to 86s, the lowest level the present generation of dairy larmers has known. One remarkable feature of the decline was that Danish butter was affected hardly at all. At the peak of the last rise, Danish was selling in London at 124 s to 1265, a premium of only 10s on New Zealand. Last week- Danish was quoted at 116 s to 118 s, or 34s above the New Zealand level. Another unusual feature is that Australian butter is selling at the same lever as New Zealand, which usually commands a premium of a few shillings per cwt. over the Common wealth produce. Commenting on the disparity between New Zealand and Danish butter, Messrs.. A. S. Paterson and Company state: — “That the British consuming public is prepared to pay such a premium for for eign butter when Empire producers arc receiving prices below the cost of production is a most regrettable and deplorable state of affairs. Empire preference, in tlie form of a duty on Danish butter, is nothing but a farce from the point of view of the New Zealand producer when the British consumer is prepared to pay Denmark a ’ premium of 34s a cwt. A quota system to operate against foreign butters, and calculated to give Empire producers a market capable of absorbing their butter at reasonable prices, was, and is, the only tiling of real value to us under present conditions of world oversupply.” The cheese market did not suffer to the same extent ns dief butter during the recent decline, and cheese is now about 4s tier cwt. below.the September level. Joseph Nathan and_ Company report to-day ns follows : —“Bidter. finest 86s, first grade 85s ; the market closed firmer, with quotations 2s per cwt. more. Cheese, white 625, colored 59s to 60s; the market is fmn.”