MARKET FOR BUTTER

Taranaki Daily News, 14 August 1930, Page 13

MARKET FOR BUTTER

DROUGHT IN AMERICA.

POSSIBLE NEW DEMAND

Owing to the severe' drought in the United of America it is possible that there may be temporarily a-fresh opening for New Zealand butter in North America within the next few weeks. If so, full or partial use will be made of space that the Dairy Produce I’oa.d has Lntatively reserved for 20,000 boxes mi board the motorship Limerick, which is due at Auckland on Saturday to load for Halifax and London. The suggestion is that the butter shall be shipped under an optional bill of lading, so that it can be diverted to London if necessary. “There are indications that butter may be required in North America shortly,” said an Auckland exporter on Tuesday. “We have had inquiries already on account of the drought, and we ar< keeping in Close touch with the situation. It is quite possible that orders will come to hand by. the time the Limerick is ready to load.” In other quarters there is some doubt whether an immediate demand for New Zealand butter will arise. At the end of last week American and Canadian stocks were unusually large for this timo of yc4U\ and. tho Monti cal whole sal’ price was down to 28 cents. On the other hand, a shortage of milk and cream is reported in the larger American cities and advice has been received that importations from Canada, which were.almost stopped by the new tariff, have been resumed. - .. . Whether the president has used his emergency powers to vary the new duties by 50 per cent, in either direction, or whether he is likely to do so, is not known. If ho takes no such action, any butter imported from either Canada or New Zealand will cany a duty of 14 cents a pound. A good deal depends on the latei’ effects of the drought. It is certain that many of the American dairy herds will take a long timo to recover, but this trouble may be met to some extent by shipping cows and heifers from Canada.

If required, the Auckland winter production can easily supply 20,000 boxes of butter for shipment. by the Limerick. It may be mentioned that, as the new Canadian duty of 4 cents a pound does not come into force until the middle of October the vessel could land butter at Halifax for Canadian consumption under the old duty of 1 cent.