THE BUTTER MARKET

Taranaki Daily News, 26 November 1926, Page 9

THE BUTTER MARKET

BUYERS REFUSE TO BUY OPPOSITION TO CONTROL. CO-OPERATION ESSENTIAL. (From Our Own Correspondent.) Wellington, Nov. 24. The butter market is not stagnant, but it is very much depressed, and controlled New Zealand butter is not meeting with a ready sale. The Dairy Control Board's policy, which is virtually the policy of the general manager in London (Mr. J. B. Wright) has not proved a success. The industrial depression caused by the coal strike is largely responsible for the dullness, but not entirely so, for it is reported, that retailers are steadily refusing to buy New Zealand butter at control prices, and sales of new arrivals have been almost negligible. The board’s reply to all such statements has hitherto been that these adverse reports are circulated by interested parties anxious to discredit the board and its policy. Such a reply has been given too often to carry weight now, aud to restore confidence to the dairy farmer the board should indicate each week the arrivals of controlled butter and cheese, the quantities sold during the week and the new arrivals. These statistics are not difficult to obtain; indeed it is the duty of the selling agents under the “Memorandum of Instructions” to send in daily reports of sales and stocks on hand. According to cabled information, the demand is for the old stored butter at 135 s to 140 s, according to age; the greater the age the lower the value. But as the old stored butter goes out the new controlled butter goes in, consequently there is no shrinkage in the quantity in store. At last week-end there were 560,000 boxes of New 7 Zealand, Australian and Argentine butter afloat for the United Kingdom, and with the heavy stocks in store the outlook for controlled butter is not very encouraging. The board has maintained its “named” prices of 148 s to 150 s for some time now, and since the demand has not proved satisfactory it is time some reduction was made in the prices to stimulate the demand. That reduction must be made sooner or later, for supplies cannot go on accumulating in cold store indefinitely. It is a great pity that retailers are not freely handling New Zealand butter, and the problem will not be solved until the co-operation of the retailers is secured. Retailers are keeping off New Zealand controlled butter in the hope that there will be a drastic reduction in prices. From this it would appear that supplies exceed the demand, which has been curtailed through the coal crisis. When the board is obliged to reduce its price it will have to face a storm of criticism, and if it allows stocks to accumulate merely to uphold the London manager’s policy it will also be severely criticised.