BUTTER RISES AGAIN

Wanganui Chronicle, Volume 80, Issue 252, 23 October 1937, Page 15

BUTTER RISES AGAIN

NEW ZEALAND AT 136/MARKET REPORTED FIRM PREMIUM OF 3d ON GUARANTEE With values now at the highest level since August, 1930, prices for New Zealand butter on the London market continue to advance. A Press Association message sent from London on Tuesday states that choicest salted and unsalted New Zealand ana Australian butters are selling at 13b.> per cwt. Danish quoted at 145 s per cwt. The market is firm.

The latest quotation for New Zealand butter represents a rise of Is pei cwt. on the price ruling at the close of last week. This time last year the London rate was only 96s per cwt. Danish butter has risen by 4s. per cwt., with the result that its premium over the New Zealand product has been increased from 6s to 9s per cwt. Two factors appear to be largely responsible for the steady upwara movement in prices. In spite of ai« increase in the retail price in London for both New Zealand and Danish butters, consumption is being well maintained. The second factor is that smaller output in several producing countries, particularly Australia, has tended to reduce stocks. Furthermore, shortages in South Africa and Germany have greatly increased the demand on the London market. New Zealand is in the fortunate position of being able to benefit from this, foi she alone of the Empire countries has steadily increased her output. Arrivals of European butters in England during the flush of the Northern Hemisphere season were not particularly heavy, with the result that stocks did not accumulate co any extent. At the end of September stocks of all butters in London were estimated at about 478,000 boxes, while about 987,000 boxes were heid 5 at the same time last year. Recent' heavy rainfall throughout Australia should tend to increase the output, but until supplies from New Zealand I and Australia reach the flush, the London position should remain statistically sound.

The Government is reaping the benefit of the enhanced prices. The latest quotation of 136 s per cwt. is equal to about 16.34 d per lb., f.0.b.. New Zealand ports, or over 3d above the guaranteed level of 13.25 d per lb., f.o.b.