RISING BUTTER MARKET

Poverty Bay Herald, Volume LXI, Issue 18397, 15 May 1934, Page 4

RISING BUTTER MARKET

WAUtOA’S GOOD SALE 9fd per lb.;f;o.b. SHIPMENT MAY TO JULY . . s' A further increase in f.o.b offers for butter are reported, and-the ’Wairoa Co-operative Dairy Company, Limited, agreed on/Saturday tp sell May'July shipments at 9}d per lb, net, which the company estimates as being equivalent to B(is per •ewt.' Qn the London market. This is : the • 'best f.o.b. 'sale' made in New Zealand for several months. The quantity, of butter involved in the sale is between 4000 and 5000 boxes, and it is confidently anticipated that this-will ensure the payment' of a bonus at the close of the season. The company advanced 9(1 per lb to; suppliers up to and including the payment made on December 20, and since then has been paying 7d per lb, which will * bo the advance for the present month on last month’s butterfat. Several thousand boxes remain unsold in London, and the market rate received for those stocks will determine the amount of the bonus at the close' of* the season. . >

The range of prices on the London .mfirket at the end of last week was 75b-to 765; ecplal to 8.68 d per lb, f.0.b., .New; Zealand. F.0.b.; offers have been firming over the past fortnight, and that of 9sd at the beginning of last wqek was superseded by that of 9fd by the end of the week. The latter offer was also made to the Kia Ora Cooperative Dairy Company, Ltd.,, for June shipment, It is reported that more butter lias been sold in Auckland during the past few days than for some time. ' ‘

Bales of New Zealand butter in Londoji improved substantially last week, wljen 2489 tons left the stores, compared with 1921 ton 3 the previous week. Stocks of-New Zealand butter increased by 76 tons, to 10,481 tons, compared with 8218 tons a year ago. Australian deliveries declined by 225 tons, to 1614 tons, and stocks increased by 430 tons, to 7699 tons, compared with 2500 tons delivered and 4800 tons in store a year ago. The market was described as firm at the end of the week, when retail prices remained unchanged at lOd and lid per lb for Danish and 9d for New Zealand. Market rates on May 11, as reported to the Dairy Board, were as follow; — New Zealand, salted 75a to 76a, ua* salted 76s to 775; Australian, salted and unsalted 73s to 745; Argentine, unsalted 725; Danish, 83s to 345; Duttc-h, unsalted 68s to 775; Estonian, salted 60s to 725, unsalted 70s to 725; Latvian, unsalted 70s to 725; Lithuanian, salted and unsalted 69s to 725; Siberian, salted 70s. THE NEW REGULATIONS SCHEME TO BE CARRIED OUT The New Zealand. Dairy Produce Board intends to proceed with* "its new marketing regulations, which will come into operation on August 1, the beginning of the next dairying season. -Some doubt concerning the board’s intentions ■, arose in the export trade in view of the Government’s assumption of responsibility for the dairy problem and the appointment of a Royal Commission. Further consideration was given to the regulations at a meeting of the board last week. It is understood that members were satisfied that the best course was to proceed to carry oat the scheme. The scheme has become one of the major activities of the board, which believes that considerable improvement in the marketing of the Dominion’s dairy produce will be effected. A suggestion that the scheme is opposed by Loudon importers is not confirmed. It is claimed that the importers, as well as the industry, realise the defects in the present system, and they are co-operating with the board. The work of appointing selling agents for the various factories is now nearing completion. Factories have already made known their wishes in this matter to the board, and in most cases the same firms are being retained. However, it has been found that some factories have dealt with as many as seven firms, and the number in these cases has been reduced. It is understood that a scheme has been completed in regard to the restriction on f.o.b. selling, and that it will be on the lines of that of the Australian board in fixing a minimum price weekly. The board will probably wofk in conjunction with Australia in this matter.

When the board’s regulations come into force, canvassing by the New Zealand agents of the importing firms will cease automatically. It Ms understood that most firms will retain connections in New Zealand, but a reduction in staff is expected.