RISE IN BUTTER PRICES

Taranaki Daily News, 11 March 1933, Page 7

RISE IN BUTTER PRICES

SUGGESTED RESTRICTION EFFECT OF AUSTRALIAN NEWS. RECOVERY FROM LOW RECORDDELAY IN THE NEGOTIATIONS. By Telegraph—Press Assn.—Copyright. London, March 9. Cabled news that the Australian Cabinet is reconsidering restriction of butter exports is having an immediate satisfactory effect on the market. Earlier in the week news of the decision not to restrict exports caused the prices to slump. New Zealand choicest fell yesterday to 70s to 72s and' Australian 69s to 71s, the lowest ever touched. To-day’s news brought a buyer’s market and there were considerable purchases, largely speculative, in anticipation that quotas will- be agreed to. This raised New Zealand butter to 74s to 7os and Australian 72s to 735. Several of the largest importers are of the opinion that if Australia and New Zealand agree to restrictions prices will recover considerably, but there must also be restriction on foreign butter. Mr. S. M. Bruce, Resident Australian Minister, was reluctant to leave London for the Disarmament Conference at Geneva in view of the butter situation, but he considers that it is essential to maintain contact with the British Government over disarmament. Consequently there will be no further butter negotiations until he returns.

“RESTRICTION' INEVITABLE.” SUGGESTIONS •BY GOVERNMENT. Rec. 1.15 a.m. Canberra, March 10. It is unofficially understood that the Commonwealth Government has informed the Dairy Produce Control Board that some restriction of butter exports is inevitable.

The Cabinet sub-committee which is discussing the matter with the Export Board suggests the restriction should be 4 : or 6 per cent., but late to-night no decision was available.