BUTTER FOR CANADA.

Star (Christchurch), Volume XLIV, Issue 386, 31 March 1932, Page 2

BUTTER FOR CANADA.

A Chance for New Zealand Producers. (Special to the 44 Star.”) WELLINGTON, March 31. Butter has been quoted in Montreal at as low as 17 c-ents per pound, equal to »}d per pound at par; on February 26 it was 20 J cents, and on March 11 it had advanced to 25 cents. The New Zealand Dairy Board is advised that the Montreal market has advanced to 27J c-ents, or Is lgd per pound. It is understood that, combined with reduction in output due to hard weather and considerably increased consumption, due to attractively low prices, the market has taken a definitely upward move. In New York, however, the price of butter last week was round about twenty-two cents, or lid per pound.

If the trade agreement between Canada and New Zealand provides for a duty of 5 cents per pound on butter—the same as is paid on Australian butter—there is a possibility, by reason of the exchange position, of New Zealand butter exports to Canada being resumed with advantage to consumers of Canada and producers of New' Zealand. The Australian Dairy Produce Export Board has given permission for shipment of 5000 boxes of butter to Canada by the It.M.S. Niagara, leaving Sydney for'Van-

couver this week. Apart from 4000 boxes shipped from Australia to Canada in December last, the Australian board hrrs prevented exports of butter to Canada this season. When, however, it was learned that New Zealand was likely to resume shipments of butter to Canada at an early date, the Australian Board lost no time in communicating with its Commissioner in Canada with the object of making further shipments, and that to go by the Niagara is the sequel of these communications. Further advices from Canada indicate that the market is likely to rule at between 27 and 28 cents or higher until well on into April.

Ottawa opinion, as learned by th< Australian board, was that the Niagarf shipment would be in the nature of { gamble, but it was stipulated by tin Dominion Government that it should b< sold before leaving Australia.