BUTTER IMPROVES TO 124/-

Stratford Evening Post, Volume I, Issue 257, 8 October 1931, Page 2

BUTTER IMPROVES TO 124/-

The Man on the Hand

1 W' STEADY POSITION OF CHEESE ? CONFIDENCE RETURNING, REPORTS STATE [TOOLEY STREET RECEIVES BENEFIT OF PRESENT RISE LATEST advices place butter prices at I 22s to 1 24s and cheese at 70s to 725, with prospects of further improvement with the growing confidence increasingly manifested in commercial circles. ? The weather, locally, has been more favourable during the past week, and pastures are beginning to freshen appreciably, but the milk supply is still somewhat behind that of last year.

The London market continues to rise and prices have now approached very much to last season's level. At the present time in London there is practically none, if any, New Zealand cheese offering on the market on behalf of the producers, the last of the season's produce having been purchased ere now by the Tooley Street merchants who will, of course, receive the direct benefit of the present rise. Whether the improved position will continue when new season's cheese oommences to arrive on the market is doubtful, but if there are heavy deliveries with the faotories, through their agents, selling as quickly as possible on arrival and even earlier, the market may be again forced down as was the case last season.

To-day's quotations Indicate an f.o.b. value to the factories of about 62d per lb, including exchange. It is reported that there is considerably more activity on the local market and a number of offers for forward sales have been made to the factories. Sales for a limited period have been effected at (lid per lb f.0.b., and less, in some parts of the Dominion. Agents do not show a great deal of confidence as yet, and these offers are limited to the outputs for September and October, which are usually small. It is expected, however, that as a result of the advance in the English market more liberal offers will be available. Dairy farmers are very pleased at the improved tone shown by the market, but are not yet unduly sanguine, preferring to wait until they see what reception their new season's produce receives before congratulating themselves on a recovery of prices. Within a month or so the first shipments from the North Island will reach the London market, and producers will then be able to form a better opinion of prospects. "Confidence is again returning and we look to a slowly improving market, which may turn very good when the National Government make their statement before Parliament," says the Anglo-Continental Company. "There are rumours of a duty being placed on foreign imports, which we ourselves think is only right. The Danes and other countries have had a long run, and it is time that the Britisher, both at home and overseas, got a look in." The stocks of cheese are just about the same as last year, but the prices are less, and this notwithstanding the fact that the supplies from now onward will be considerably less than was the case last year.

It is apparent that the Importers' Association have faith in the future prospects of the markets, as they have increased the rate of advance on butter and cheese by sd, making them now 10i|d and 6d respectively. Germany's Influence The effect of German action upon the British butter market was demonstrated during the recent financial crisis, and proved beyond a doubt that Germany is a very important factor in the butter trade. Germany imports butter from Denmark, Lithuania, Poland, Kussia, Latvia, and Holland, and this in spite or the high tariffs imposed a year ago. In tne weeks before the crisis New Zealand butter was selling in London at 116 s per cwt and seemed as firm as a lock. During the two weeks of the crisis the imports of butter into Germany fell by 20 per cent. Continental supplies were diverted to Loudon and the price of New Zeai> land butter fell to 10i)s. The financial position was adjusted, butter supplies to Germany again became normal, and the price of New Zealand butter in London rose to HGs. These facts show only too plainly

what might happen to our market if Germany decided that the imports 1 should be curtailed. A reduction of only 15 per cent, would make a considerable difference to the prosperity of the New Zealand farmer. As for future prospects, apart from national disasters, the conditions seem favourable for a continuation of increase of present prices. The consumption of imported butter from January to July this year has been at the rate of 7000 tons a week, which is a record. Last year 341,400 tons were consumed, or at the rate of GSGS tons a week. There is certainly not 7000 tons of imported butter a week in sight for the next few months. That being so, there seems no reason for any fall in the pyice.

PAT BUTTER SALES IN BRITAIN

EXPORT BOARD SCHEME The Australian Dairy Produce Export Board decided at a meeting concluded recently to submit to a conference of co-operative and proprietary interests in Sydney on December 8 proposals for the formation of a company to undertake the preparation and marketing of Australian butter in pat form in Britain. It was also decided that representations should be made to the Trade and Customs Department with a view to securing a rebate of primage duty on paper imported into Australia for the wrapping of butter exported overseas.

Friesian's Success The name of Longbeach is synonymous with big things, and the enterprise of the owners has made history in farming. We read now of a Friesian cow on the Victoria research farm making 6991 b. of butter-fat under Government test. She is one of the fifth generation of high producers, the original stock being imported from Holland by the late Mr. John Grigg 50 years ago. He would probably be looked on in these days as a dreamer, yet where would our present-day New Zealand records in dairying be without the Priesian?