DAIRY PRODUCE

Te Awamutu Courier, Volume 54, Issue 3894, 26 April 1937, Page 5

DAIRY PRODUCE

LONDON RETURNS EQUAL THE GUARANTEED PRICE. RISE IN BUTTER VALUE. For the first time since early December butter is realising on the London market a price equivalent to that paid to New Zealand dairy companies. Cheese is realising a subtial surplus. Butter requires a value of 106 s per cwt in London and cheese 59s 6d per cwt to equal the guaranteed price. Up till the new year the London market quotations were, on an average, high enough to equal the New Zealand pay-outs. During the past three and a half months a substantial deficiency must have been incurred. In view of past season’s winter rises and spring peaks returns may yet exceed pay-outs sufficiently to square accounts. Under the New Zealand marketing procedure supplies are put into consumption fairly evenly throughout the year. Thus large supplies of produce will be available for the high price period. The course of the market during the next three months and its strength and height on 31st July next will determine the result of this first year of a big experiment. LONDON REPORT. Some features of this week’s Dairy Board circular call for comment. The Danish premium has fallen to 8s fid a cwt (over New Zealand). The retail price of New Zealand butter is Is Id and Danish at Is 2d is but Id lb higher. At times this has been 3d; indeed, generally so. Stocks, at 624,000 boxes, are no cause for concern, being but ten days’ supply. Deliveries are good, despite the retail price being over Is. On Britain’s new level of prosperity it is probable that at Is Id lb consumption will keep pace with supplies. Should this prove so, it will mean a great deal to New Zealand. Latest quotations are:—-

Butter: New Zealand finest salted: This week, 106 s to 107 s; last week, 102 s a month ago, 98s a year ago, 86s to 87s. 106 s 6d equals 12.72 d lb but-ter-fat pay-out. Cheese: New Zealand white: This week, 68s 6d to 695; last week, 66s to 675; a month ago, 61s; a year ago, 52s 6d to 535. 68s 9d equals Is 3d lb butter-fat pay-out.

INCREASING DEMAND FOR NEW ZEALAND PRODUCT.

PROGRESS IN THE NORTH. Reference to the expanding market for New Zealand butter in the North of England is made by Mr T. N. Maxwell, a director of the New Zealand Producers’ Marketing Association, writing from England on April 1. “ There is now no doubt about the national increase in expenditure on foodstuffs, as the latest statistics just to hand show a national increase in purchase of groceries amounting to 7.1 per cent,” writes Mr Maxwell. “ With heavy armament expenditure steadily increasing the purchasing power of the masses, it is logic to expect to see both butter and cheese consumption expand, that is, providing retail prices are not forced too high. “ Continental supplies are expected to show an increase from now onward and there is every indication that the substantial premiums that they have been enjoying will gradually disappear. During the slack period of supply for cask butters, there has been a great demand for New Zealand in the North of England and in the Midlands. Although fresh supplies of cheaper cask butter will undoubtedly again capture the bulk of that market, there is no question that New Zealand utter is gradually establishing itself in a big way in the north, and it is to this territory that we must look for future expansion of our market.”