German Butter Buying gives More Hopeful Prospect

Poverty Bay Herald, Volume LXI, Issue 18545, 3 November 1934, Page 13

German Butter Buying gives More Hopeful Prospect

DEPORTS of increased buying of Continental butters bv Germany have given the London buttin' market a more favorable tin a. Apparently Germany's negus iat inn.; in purchase heavier supplies tor her next two months’ requirements have been kept secret, and it remains (n be seen what the full effect of her re-entry into the market will. be. Nevertheless, the latest market quotations show a substantial advance upon the record low levels of last week. Developments in the Continental situation was revealed in the following cablegram received by A. S. Paterson and Company, Limited, from J. and J. Lonsdale, London.

“The Continental position is completely changed owing to Germany taking practically all Swedish, a large proportion of Latvian, .and an increased quantity of Danish blitter during the next two months. This should result in an increased demand for colonial butters in the Midlands and North. The negotiations were absolutely secret, until to-day.” Continental Production For the year ended .June 30, Sweden, as the result of a, particularly good season, exported 22,170 tons of butter, of which 15,057 tons were sent to Great Britain and 'the remainder mostly to Germany. In the same period Latvia sent 8877 tons to British markets, while she reduced her shipments to Germany from 8(350 tons to 5526 tons.

Although the arrangements made ibv. Germany will, in any case, give a much-needed lillip to London prices, the butter trade is anxious to see a permanent revision of Germany’s economic policy. Imports of butter into Germany are normally greatest in the second half of the year, and towards the end of 193 d imports were running in excess of the quota. The limitation of imports of butter by Germany is one of the chief reasons for the glut of supplies on the British market and the consequent fall in prices to unpayable levels. Four years ago Germany imported more than onethird as much as the total imports to the United Kingdom. In 1933, although i! remained the second largest- importing country in the world, its total imports were only one-eighth of those of the United Kingdom. If trade with Germany could again be built up, supplies to Great Britain could'be reduced piaetieaUy to the 1931 level. Germany’s .Changed Trade • The following table compares net imports of butter to the United Kingdom and Germany during the past six

Of pie German imports in 1933, tile following were the chief sources of supply: i.lemtiark, 16j350 tons; Netherlands, 11,3:10 tons; Latnvin, (5150 tons; Finland, 5000 tons; Sweden, 4300 tons. The declared policy of the German Government in the past year or more has oeen to render the country more self-supporting; for dairy products, and with that object in view increased tariffs in 1931 were followed bv restriction of importation by quota in 1932. For 1933 the total importation provided for was 55,000 metric toils (a metric ton being equal to 22001 b. avoirdupois). A't the end of 1933 butter was brought under the control of the Fat Monopoly, through which ail blitter, whether home or imported, must he purchased. Since early this year, imported butter has had to bear a .surcharge in addition to the customs duty to bring the price up to the. fixed internal level. The quota for imports i:i 1934 was fixed at 45,000 metric tons. __

years:— U.K. Cl 1‘i‘nmny Ton's. Tons. 192S . . .. 297,450 124,550 19219 .. . . 313,700 132,250 1939 .. .. ,13 2,150 131,050 1931 . . . . 3S5.450 98,050 19.12' ;; -402,'80008,400 1933 . . . . ' 437,450 5,8,200