DAIRY VALUES

Wanganui Chronicle, Volume LXXXIII, Issue 20168, 9 June 1928, Page 10 (Supplement)

DAIRY VALUES

PRESENT PRICES NOMAL COMPETITION OF AUSTRALIA When reviewed in the light of past experience, and having regard to the normal annual trend of the world’s dairy production, the relatively lower prices for New Zealand dairy produce which have ruled for some weeks pastgive no cause for concern. There is every indication that they will at least be maintained until after mid-winter. The 1927-28 New Zealand dairying season is now closing with the approach of winter, but a mild autumn has sustained production better than was hoped for after the dry summer. The balance of the season’s butter and cheese will have to face competition with that of the Northern Hemisphere. 11 Probably the new season's product of the Irish creameries is now being marketed in England.’’ said a dairy produce exporter when discussing the position the other day. Naturally, the tide of dairy exports from many dairying lands on the other side of the world would be flowing strongly toward the United Kingdom, and for the next few months xalues would be governed by Continental conditions of supply and demand.

•*I do not expect any appreciable increase on current quotations for some time to come, but believe they will be sustained, and if that is so there vid be little cause for complaint.” said the exporter. He emphasised that cheese remained firm at a payable ievet, and would certainly show a satisfactoryaverage price for the season now terminating. Another exporter, traversing some of the factors against higher prices for New Zealand butter and cheese at this time of the year, touched upon the remarkable late increase of production in Australia. It was stated Australia was effecting substantial forward sales at cut rates to dispose of its autumn butter and cheese while meeting the competition of Northern Hemisphere production. He had learned of transactions in the Commonwealth on a basis of 151 s to 152 s c.i.f., which, taking into account the benefit which Australian producers received from the Paterson export bounty’, brought the value of the sales about on a parity with current quotations for New Zealand supplies.

Under the shelter of the Paterson scheme Australia was enabled to undersell New Zealand on the British market, and be re imbursed, as it were, by the export bounty, yet he believed there was no reason to assume that New Zealand butter and cheese quotations would suffer further. The existing position was normal so far as prices were

concerned, and in respect of stocks on hand, statistically sound.

One element which tended to prevent any further depreciation in New Zealand values was the desire of some Hume importers to maintain, as far as possible, their supplies of New Zealand dairy produce to retailers who had developed a trade in the fern leaf brand. As the season on this side of the world tailed off, the demand for New Zealand butter from such sources would have a sustaining influence.

When current quotations of up to 166 s for New Zealand salted butter arc compared with those for the corresponding period of the past three years, it is seen that the position is very nearly normal. At this time in May of last year, the London market was quoted at 159 s to 160 s. In May, 1926, quotations ranged from 169 s to 171 s through the month, and in the previous May from 167 to 171 s.