Higher Prices Likely

Sun (Auckland), Volume I, Issue 143, 7 September 1927, Page 9

Higher Prices Likely

N.Z. DAIRY PRODUCE BRIGHT PROSPECTS By Cable.—Press Association. —Copyright Reed. 11.20. LONDON. Tuesday. Inquiries indicate much better prospects for New Zealand dairy produce in the coming season, with higher prices likely. These will largely compensate for last season’s losses. Canadian cheese exports to Britain during the summer are estimated to be 25 per cent, below those of 1926, and the lowest for 35 years, owing to the diversion of big supplies of milk and cream, and the sales of a larger number of dairy cattle to the United States. As Britain depends chiefly on Canadian and New Zealand cheese, New Zealand is likely to monopolise the British market in the coming season, with correspondingly higher prices. A portion of New Zealand’s output has been already sold in Britain at moderate prices, but the majority will reap a real benefit from the improvement. Canadian cheese has advanced 10s, to £5 a cwt in the past week. The shrewdest. London importers point out that it is impossible for Canada to make up the deficit if two months, before the closing of the season, and it may be compelled to import: New Zealand cheese next winter. British importers have already received Inquiries from the United States, which may not materialise to a demand for supplies, but convey the indication of a possible winter shortage al! over North America. The butter position is not yet defined, but unless Australian conditions improve, New Zealand’s early production should realise relatively high prices. It is noteworthy that already considerable quantities are booked for Canada, but it is uncertain whether the United States is likely to import butter during the winter. Wellinformed circles foresee that the present conditions will end in a worldwide agricultural depression, and brighter prospects for dairying.—Sun.