HEAVY STOCK OF BUTTER

Taranaki Daily News, 20 October 1930, Page 9

HEAVY STOCK OF BUTTER

CONSUMPTION INCREASED

LOWER PRICES STIMULUS

IMPROVEMENT IN DEMAND

By T«l«graph—Praia Asm. — Copyright. Rec. 8 p.m. London, Oct. 18. The butter market has shown some improvement both in demand and prices this week, and hopes were expressed that bottom had been reached. One of the principal importing firms, in its monthly report says the main trouble has been the heavy stock, which Jias been held in cold stores for a long time. It was hoped that relief would have been obtained in .September by smaller imports, but actually the September imports were 6000 tons in excess of those for September, 1929, and 8500 above those for September, 1928. Although consumption has been stimulated by the lower prices and is now estimated at well over 6500 tons a week, these heavy September imports did not enable the stocks in cold stores to be reduced quickly enough, and holders weie getting scared in view of the big increase Tn production in New Zealand, Australia and the Argentine and the anticipated increase in the Baltic Provinces. It would appear that pressure to sell was unduly accentuated, and during the past few days a reaction occurred. Retailers are steadily reducing prices to consumers, and a further increase in consumption may be looked for. The report adds: “With complaints of bad trade and the number of unemployed increasing weekly, the consumers’ demand for Danish at 3d. per lb. above New Zealand and Australian butter is extraordinary.