BUTTER PRICES.

Wanganui Chronicle, Volume LXXVI, Issue 18443, 29 March 1922, Page 6

BUTTER PRICES.

RISING MARKET AT HOME GOOD NEWS FOR DAIRYMEN (Per Press Association.) WELLINGTON, March 28. Improved prices tor New Zealand butter in England will enable producers to finish this season with inhnitely better returns than the progress payments on butter-fat had indicated. A pressman inquired or Mr J. B. McEwan, a prominent dairy produce merchant, how much of New Zealand's season s output is likely to benefit irom the high prices, and was assured that apparently onehail ot the total production will be marketed under improved conditions.

Mr McEwan was also able to give important iniormaiion regarding the causes of the buoyancy in the market. "What hung over us like a wet blanket,” said Mr McEwan, "was the unsold balance of 22,000 tons of Imperial stocks. Prices had to reach a certain level before the multiple shops in England started buying butter to sell at a price which could put margarine out of the running. This they achieved, but the consumptive demand became so strong that it is only within the last ten or fourteen days that importers appeared to realise that there was not enough butter in sight. The rise is exceedingly lucky to New Zealand producers, coming at a time when they still have such large quantities to sell. It will materially improve their average return for this season. The lonic shipment, which arrived on the 19th February, was the last to sell at 140 s. Then the Wiltshire's consignment sold on March 12 th at 160 s to 1635. Up to the point of the lonic’s shipment about 2000 tons of New Zealand butter had been sold at about 120 s, though small earlier shipments had got the benefit of the shortage and fetched 170 s to 190 s. Thus it is now evident that half of this season’s output of butter will bring prices in excess of 140 s. Taking an average future price of 1655. this equals at least Is 3d per lb for butter-fat, so that producers may wind up their season with a return of something like Is 2d on the whole production. “The next shipments to be sold will go higher, and if they fetch 180 s ft means Is 5d return for butter-fat, This is the cloud with the silver lining, and it is going to make a very decided difference in the prospects of producers.” WIDE DEMAND FOR BUTTER. Mr McEwan remarked that nobody outside the trade could realise what a buoyant market meant to the producers. There were good signs all round. For instance, he had received information from a very large house in Montreal, stating that to meet the Canadian winter det mand they had to bay large quanti : ties of New Zealand butter from London. They bought from London at a lower price than the New Zealand factories were prepared to take, the fact being that we were asking in New Zealand a price higher than thp world’s price. Mr McEwan said he had good reason to believe that a large quantity of New Zealand butter had been going to France and Italy, which, w-iih the increasing English demand, accounted for the improved tone of the market. His latest cabled information justified factories in continuing to consign despite the high prices now offered.