THE BUTTER MARKET.

Waipa Post, Volume XXI, Issue 1281, 15 August 1922, Page 4

THE BUTTER MARKET.

POSITION IN LONDON.

DIFFICULT TO FORECAST

Mr R. ’Ellison, representing the National 'Dairy Association of 'New Zealand, lias forwarded the following report of the dairy produce market, under date 26th June: — ,

To-day it is difficult to state the value of :New Zealand butter. Ten days ago (the price was 184 s. it rose rapidly from that figure to 2365. During this time all available stocks passed out of the hands of importers. Large quantities were purchased by multiple shop owners and the big stores, also the blenders, who must., to protect themselves, 'be prepared to carry resisting stocks. So keen has the demand been for 'butter that the market is now bare of stocks. If even moderate quantities are required they can only be obtained from wholesale firms or large retailers who may be prepared to sell in limited quantities and take a profit on their purchases. The contributing causes to the present healthy butter position are to be found first of all in the clearing of the market of the Government accumulation of New Zealand and Australian butters. It has been stated that while negotiations were proceeding as between the Imperial Government and the colonial one, certain importers stepped in and purchased the remaining stocks and prevented the colonial Government from securing the stocks. We are’ of the opinion that neither the Dominion nor the Commonwealth Government was at all anxious to be drawn into purchasing its stocks, and was relieved to know that they had been cleared without either Government’s intervention. At any rate, the negotiations were of too protracted a nature. It is advisable to a’ct promptly in such matters.

The fact that these stocks passed into the possession of several large importers had a steadying effect upon the market —even more so than if the stocks had passed from one Government to another. From this point the butter market ‘began to mend, and has continued to advance more or less ever since.

The price at which the butter was bought allowed of a low retail price and the public once more became accustomed to use butter and neglected margarine. Another factor in bringing about the present state is the loss of the -Siberian and Russian supplies. These in the pre-war period were a factor in the trade. It will be some years before these countries can again be in a position to export any quantity of butter to the United Kingdom. The spring generally was late in the northern hemisphere, and when the fine weather came it set in dry and the country has been severely handicapped due to restricted rainfall.

The disturbed state of Ireland has restricted the export from that country.

For several months in the beginning of the year the Continent was a heavy buyer of butter from the United Kingdom, largely of New Zealand and Australian butter. A combination of circumstances has therefore contributed to the creation of the position as we find it to-day. From present indications there is sure to ,be a shortage of butter until the shipments from Australia and New Zealand are resumed.

We may have, at an early date, to make reference to the changed conditions which are developing in regard to the ’butter supplies for this country. The increase in the make from Australia, New 'Zealand, South Africa, and Argentina would indicate the possibility of a condition arising in which butter would he 'cheaper than during the summer in the United Kingdom. The Board of Trade figures show that from Ist January to 31st May this year 823,000 boxes of butter were exported from the United Kingdom, and during the same period last year only 13,000 boxes were exported.