LEADING EXPORTER SPEAKS

Taranaki Daily News, 12 May 1934, Page 6

LEADING EXPORTER SPEAKS

VARYING FACTORS AT WORK. DEMAND FOR DOMINION BUTTER. When a leading exporter wap approached for an opinion regarding the factors influencing the rise he had some interesting comments to make on the situation generally. He stated. that the. make of the last four weeks had been affected by the very cold weather and was mucn below that of last year, when there had been a particularly good late autumn and production had in consequence been phenopjenal. Now very- much. less butter was being made than at this time last year, and production - - was decreasing rapidly. ' . . - The weekly consumption of butter in Britain was 9400 tons, and imports into England for the year ending June 30, 1934, were estimated to total 470,000, On a basis of a weekly consumption of 9400 tons for 52 weeks nearly 490,000 tons would be required, against an estimated total import of 470,000 tons. From this it would be seen that present consumption would easily take care of imports. The make of the export countries in Europe was declining. Apparently as the price of butter was reduced fewer persons were going in for dairy farming because of the unattractive price. As the price went below a paying one some people were naturally forced put, That was taking the long view. The immediate effect visible was that there was a slightly greater quantity of butter in store in England this, year than last year, and the outlook as regarded this quantity was such that the-demand would absorb the amount in store. Asked if the reduced production would have a possible bearing on delaying the contemplated quota imposition, Mr. Griffiths said this was an open question. It was not possible to estimate the next season’s production. There had been two wonderful seasons in 1933 and 1934, and these had no doubt helped to make production greater than could be hoped for for another season. In view of this improbability a number of sheep-farmers who had gone in for dairy herds, when wool prices were low would again find sheep more profitable. The increase in production in 1935 would probably be nothing like it was for 1934, when it was estimated at 10,000 tons more than in the previous year. Another factor which would affect production was that butter had been so low that farmers had been Unable to buy fertilisers, with a consequent reduction of pasture value. The market certainly had improved, he added, but it might not go much further than the present figure for some time. Sales had been made in the last few days at 9Jd, equal to 82s qn the English market, but this butter would not be on the British market for from six weeks to two months. He thought the English buyers were optimistic in purchasing at this figure. Another factor in influencing demand, and with it the Price of New Zealand butter, was the steady reduction of unemployment in England. The absorption into employment increased the spending power of a great number, and New Zealand butter at 9fl a pound was attractive buying as compared with lid and Is for Danish. As a consequence the sales of New Zealand and of Australian butter were increasing steadily. FORWARD SALES AT 9|d. F. 0.8. MARKET IMPROVEMENT. By Telegraph—Press Association. Auckland, Last NightThe improvement in the butter market has been reflected in the f-o.b, market. Forward sales have been m a de at 9Jd, which i? equal to between 80? and 85s a cwt.