BUTTER PRICES.

Wairarapa Age, 1 August 1936, Page 5

BUTTER PRICES.

EXPECTED TO GO STILL HIGHER. VIEW OF REPRESENTATIVE OF HOME FIRM. VARIOUS CONTRIBUTING FACTORS. NEW PLYMOUTH, July 31. Basing his estimate on information available from his principals and various overseas sources the New Plymouth representative of a large Engbah produce firm expressed the opinion that while the average price of butter for the season just closing is about 2Jd per lb. f.o.b. better than for the previous season, the coming season will record a further rise of at least 2d per lb. In other words, butter for the coming season will net f.o.b. New Zealand not less than Is 2d per lb. Of the many factors which he considers will make for higher prices he mentions that the general prosperity in most trades and industries in Britain and the greater expenditure on armaments mean a bigger spending power of the masses; secondly, stocks of all butters in Britain are considerably less than they were a year ago and a big consumption of butter is being maintained notwithstanding the increase in prices. America provides a new element which cannot yet be estimated. Not only are stocks of butter in the United States 10,000 tons less than in July, 1935, but America has this year experienced floods and drought throughout most of the dairying area which have been unequalled for 50 years. It is expected that America must draw supplies from both the northern and southern hemispheres. The effect of this upon the London market cannot yet be foretold.—(P.A.)