DAIRY PRODUCE.

Taranaki Daily News, 3 July 1925, Page 8

DAIRY PRODUCE.

IMPROVEMENT IN PRICES. INFLUENCE ON-THE MARKET. "OUTIDOK EXTREMELY GOOD,” (From Our Own Correspondent.) Wellington, Last Night. The. dairy farmers are to be congratulated upon their exceedingly good luck in having prices advance at a time when they should 'be easy. Ever since the beginning of last month the market has been improving. At first it was the strike of transport workers in Denmark that helped matters, then adverse weather conditions were experienced which checked the European production and caused considerable alarm among buyers, who were forced into the market. The prices realised before Christmas ranged from 200 s to 228 s per cwt., but in January there was a sudden drop, prices going down to 156 s to 158 s. The sharpness of the decline was not relished by the exporting factories, and the distributing houses in London were instructed to hold. This resulted in accumulations of New Zealand and Australian butter, and in May it was estimated that there were about a million boxes held up. The exporters held for 170 s, and that price was reached some three weeks ago, and the quotations for finest salted butter are now 188 s to 190 s. This should have helped to clear the accumulations, and no doubt it has. If so it makes the outlook for the rest ot the season extremely good. As cheese prices are also firmer, it is' apparent that the European make is short and that Canada is • unable to make up the deficiency. The dairy farmers have had a bit of luck, but it is hardly, likely that the factory directors will regard it as such. They are more likely to attribute the improvement to their own remarkable business foresight. The dairy produce market is subject to several influences, as the experience ot the past few months has shown. A strike of workers in any of the more important producing countries promptly affects the market adversely. Climatic conditions arc a potent factor in lifting the market, because a natural shortage Is created, but accumulating supplies and holding for a price does not always work. It would not have operated on this occasion but for the fortunate circumstance of a strike In Denmark and hot weather in Europe. The fact of the matter is that the dairy produce market is ever an uncertain one, and the fact that there are price variations every week and sometimes almost every day emphasises this.