LONDON BUTTER SALES

Taranaki Daily News, 23 December 1931, Page 16

LONDON BUTTER SALES

DOWNWARD PRICE TREND AUSTRALTAR COMPETJTION. REVIEW OF THE MARKETS, Hamilton, Dee. 21. London marketing conditions for New Zealand dairy produce are discussed by Mr. W. Goodfellow, managing director of Amalgamated Dairies, Limited, in a monthly statement issued to suppliers of the New Zealand Co-operative Dairy Company, Limited. Mr. Goodfellow said the downward course of the London butter market in October continued during November and December to date. Normally at this time of the year a temporary lift in prices created by the increased Christmas demand was looked for, but the heavy weight of Australian and New Zealand arrivals, plus the financial stringency in Europe, had prevented this development this season. Danish, quotations had shown a marked improvement during the past few weeks, but this was explained by the temporary increased demand from the Continent, the result of & movement to increase the import duties on butter by Germany and Belgium. Both countries were anxious to reduce imports and to develop their own dairy industry. COMMONWEALTH SHIPMENTS. Stocks of New Zealand butter in London were being kept well down, and at last advices were little more than a week’s delivery. Arrivals of New Zealand butter in December would not be particularly heavy, but, unfortunately, they would meet with severe competition from Australia. Exports of butter from the Commonwealth during the past five months were up 75 per cent, when compared with the same period for the previous season. Shipments had increased from 16,000 to 28,000 tons. The low retail prices which had ruled during the year, coupled with the efforts of the various organisations concerned in extending the demand for Empire products, had undoubtedly increased the outlet for New Zealand butter, and in this respect the position was better than it was last year. Mr. Goodfellow said there was a possibility that the present exchange premium on exports would be gradually reduced in the near future. The Australian rates had been cut by 5 per cent., and Commonwealth exporters were expecting a further reduction shortly. MR. STEWART’S MISSION. The probable outcome of the Hon. W. Downie Stewart’s visit to Honolulu would be an arrangement on the lines of the Canadian-Australian agreement, by which the duty on butter was assessed at 5 cents a pound. It was anticipated, continued Mr. Goodfellow, that the advantage which Australia enjoyed by reason of her depreciated currency would be offset by a’provision in the Canadian tariff, which imposed a special duty equivalent to the amount of currency depreciation. On the whole, the cheese market had been weaker than during the previous month, and at the present quotation there was not a great deal of demand. It was probable that the weight of shipments arriving would keep prices down, but, of course, cheese consumption depended largely on industrial conditions in England. The financial stringency in Germany was restricting the casein business, ana sales were difficult to negotiate even at £3O a ton. Japan was only buying from hand to mouth, and the Argentine was selling fairly substantial quantities at £l2 a ton c.i.f. European ports. The volume of milk powder sales was satisfactory, but competition was extremely keen, and prices were somewhat lower than they were last season.