THE BUTTER MARKET.

Waipa Post, Volume XXI, Issue 1242, 13 May 1922, Page 6

THE BUTTER MARKET.

THE OUTLOOK IN LONDON. INFLUENCE OF INDUSTRIAL CONDITIONS. Mr L. Ellison, London representative of the National Dairy Association, writes under date of March 27th, as follows : “ It is possible that for some time to come, butter prices in this country may be during the summer on as high a level or higher than winter prices. Especially might this be so if Australia and New Zealand can maintain their last season’s increase. “It is satisfactory to again report that a very high standard has been maintained in the make of New Zealand butter. The time will come whefi its value will be understood and recognised. This desirable state of things could be accomplished much more readily if marketing conditions were radically changed, and in mentioning this there is no suggestion that existing channels of distribution should be scrapped. “The outlook for butter during the immediate future and for the next month or sd, appears to be much more favourable than that of cheese. “Butter should be maintained at present values. It may even go higher. Cheese on the other hand is accumulating in New Zealand. This is going to mean a very serious loss to our producers. By the time this cheese reaches its market we will find the English and Scottish makes are active competitors, and, more serious still, the Canadian make. Cheese for the next month or six weeks should find a ready Remand round current prices, or possibly something better. From then on prices are likely to begin to decline, and while we look for butter to remain at today’s level, we are inclined to think that cheese will gradually recede in value. It is open for Canada to make butter during the opening months of their season. If so, then our conclusions may be largely upset. “ It must not be forgotten that the industrial conditions of the United Kingdom are had, and they are likely to be worse. England cannot alone recover. If recovery is possible, Europe, and England must simultaneously recover. One country cannot expect to prosper and the others stagnate.

“ Speaking of the question of grading, especially butter, we think the time has now arrived when the second grade stamp could be conveniently withheld. By all means stamp the .first grade on boxes answering this description, but allow the others to come here without advertising the fact they are seconds. There are markets when second grades will bring equal to first,, and there are many buyers who cannot determine which is first and which is second, but if the boxes are distinctly marked second grade, then the buyer, in .spite of quality, refuses to pay the price. “ A factor which will play part in the future of the butter trade is the entire elimination of the Siberian supplies, which used to reach this country to the extent of 35,000 tons per annum.”