FOREIGN BUTTER IN THE UNITED STATES

Waipa Post, Volume 31, Issue 1764, 29 May 1926, Page 3

FOREIGN BUTTER IN THE UNITED STATES

SMALL QUANTITIES IN STORE. RE-EXPORT TO BRITAIN. I have recently been asked how much foreign butter there i s in New York, and just what the owners are ' doing with it (writes " The Man in the Street" in the New York Produce Review). There is, of course ,much less interest in that class of stock now that prices for the domestic product are so much below Che cost of the imported goods, but some operators have a sort of passive interest in the articles that they are slowly passing out. of view, and are not likely to again find a place here for many months, if, indeed, the time does not roll into years. On the basis of 38 cents for our creamery extras, the tariff of 12 cents a lb on imported butter is about 311 per cent, which is practically prohibitive.

In making an investigation of the remaining quantities of foreign butter held here, I find that only a few hundrred casks of Danish are left. These cost high, and are working out in. small lots, generally at prices entirely out of line with the finest of our domestic goods. Here and there a lot is taken for export to some of the southern countries. A few days ago a lot of 200 casks of Swedish butter was in the .bonded warehouse, but 100' casks have just been sold at 36 1 cents, to go to Cuba. It is estimated, that approximately 900 casks of Siberian butter are still in first hands, and they are held around 39 to 40 cents duty paid. Of course, only small lots—one to five casks —can be sold on that basis, largely to fine packing trade, the high percentage of butter-fat being attractive to certain buyers. The other day I heard of a sale of 25 casks at 33£ cents in bond, the butter to be exported. Perhaps there are about 2000 boxe s of New Zealand still unsold, a fair proportion of which is unsalted,. Negotiations have been pending with London operators, and it is more than likely that part of this stock will be shipped to England. The asking price here is around 41 cents duty paid. One day last week a vessel from Australia unloaded 3000 boxes of butter, but this went to Canada on through bills of lading. The best information I can secure regarding the Argentinian butter is that approximately 4000 boxes remain in first hands, a considerable part of which is in bonded warehouse. About two weeks ago 500 boxes were shipped to London on the Alinnewaska, and last week SOO boxes went to Liverpool on the Adriatic. Probably some other

shipments will be made to England. If this butter has a selling value here at present of 35 cents, it would mean } a set price of only 23 cents after de- ! ducting the 12 cents duty. ! It should be clearly understood that this foreign butter has no influence on 1 the general situation here. The quantity is a mere drop in the bucket, and holders do not apparently show anyhaste in disposing of it. The world's markets are gradually finding a lower level, and, if I mistake not, this year's average prices will be considerably below last year. Canada is struggling with the prospect of largely-increased production and narrowing outlets. The advance in our duty on butter and probable raising of the tariff on cream complicates the situation for our Canadain friends. It is, estimated that the quantity of cream that came into this country from Canada in 19125 was equal to. about boxes of butter. If this oream goes into butter on.theother side of our northern line Canada will have that much more surplus to send, to England if the latter country will take it. The season in New,Zealand and Australia is drawing to a close, and where rain and other climatic conditions play so .important a part in flue production of butter no one can predict with any certainty what next year's crop will be. There will undoubtedly be a material increase in the Siberian output, as- the dairy industry of that country is coming back fast to normal. The exportable surplus the coming season Will be more than double that of the past year. Central. Europe will undoubtedly make more butter this season, and even Denmark promises some further, increase. It looks, therefore, as if the world's supply.in, 1926. will.be so much larger than in 1925 as to necessitate a lower average price, And it will be weil for operators here to get as broad a view of the situation as possible before they plan for the storage of surplus stock. - t.,:-;••;■;