BUTTER MARKET

Waipa Post, Volume 43, Issue 3391, 22 December 1931, Page 8

BUTTER MARKET

DOWNWARD TREND OF PRICES. REVIEW OF THE MARKET. HAMILTON, Monday. London marketing conditions for New Zealand dairy produce are discussed by Mr W. Goodfellow, managing director of Amalgamated Dairies, Limited, in a monthly statement issued to suppliers of the New Zealand Co-operative Dairy Company, Limited. , , Mr Goodfellow said the downward course of the London butter market in October continued during November and December to date. Normally at this time of the year a temporary lift in prices created by the increased Christmas demand was looked for, but the heavy weight of Australian and New Zealand arrivals, plus the financial stringency in Europe, had prevented this development, this season. Danish quotations had shown a marked improvement during the past few weeks, but this was ex- «.'■ plained by the ‘temporary increased demand from the Continent, the result of a movement to increase the import duties on butter by Germany and Bel- .. gium. Both countries were anxious to reduce imports and to develop their own dairy industry. COMMONWEALTH SHIPMENTS. • Stocks of New Zealand butter in London were being kept well down, and at last advices were little more than a week’s delivery. Arrivals of Ndw Zealand butter in December would not be particularly heavy, but, unfortunately, they would meet with " •severe competition from Australia. Exports of butter from the Common-s-wealth during the past five months ■''f. were up 75 per cent when compared with the same period for the previous season. Shipments had increased S V, from 16,000 to 28,000 tons. ’ The low retail prices which had rulSvK’: ed during the year, coupled with the efforts of the various organisations concerned in extending the demand for Empire products, had undoubtedly increased the outlet for New Zealand butter, and in this respect the position was better than it was last year. Mr Goodfellow said there was a possibility that the present exchange premium on exports, would be gradually reduced, in the near future. The «hstralian rates had been cut by 5 Ir cent, and Commonwealth exports were expecting a further reduction shortly. v. . ' Dealing with f.0.b.; business, Mr i- Goodfellow said offer's'up to lid per lb. f:o.b. for December-January ship-. : 'ment had been made, but most factories preferred to consign. MR STEWART’S MISSION. V The probable outcome of the Hon. ";-Mw. Downie Stweart’s Visit to Honors lulu would be an arrangement on the lines of the Canadian - Australian agreement, by which the duty on butV > ter was assessed at 5 cents a pound. . It was anticipated, continued Mr Goodfellow, that the advantage which Australia enjoyed by reason of her depreciated currency would be offset by a provision in the Canadian. tariff, -which imposed a special duty equivalent to the amount of currency depreciation. On the whole, the cheese market - itiad been weaker than during the premonth; arid at the present quoliere was not a great deal nd. It was probable that fht V of ; shipments-' - arriving :eep\ prices down, but, of heese consumption'-depended on industrial conditions in riancial, stringency in Gers restricting the casein busi--1 sales were . difficult to nejven- at.: £3O a ton.. Japan ; buying from hand to mouth, Argentine V?as : selling .fairly al ! quantities at £l2 a ton dome of milk powder sales [factory, but competition was, f keen, and prices were somewer than they were last