DAIRY CONTROL

Waimate Daily Advertiser, Volume XXIV, 23 April 1927, Page 4

DAIRY CONTROL

THE BUTTER POSITION. (Our Own Correspondent). WELLINGTON, April 20,

Dalgety and Co.’s dairy produce circular dated February 23 gives some idea, of the state of the market prior to the Board abandoning price-fixing. The circular reports:—“The sales of

the Controlled Board has been so limited that stocks have accumulated until it’ is estimated that the quantity on hand here, afloat, and available for shipment in New Zealand is in the neighborhood of 1,250,000 boxes —an alarming total. Such sales as have been made have been principally confined to favorite brands. When all brands are limited to a flat rate it follows that buyers in a dull market only pay attention to the best known marks. This seems detrimental to the lesser known factories. The minimum prices were advanced by 2s per cwt on February 12, but this was apparently not justified by the demand, because prices were on February 27 reduced by 8s per cwt. It is too early to form a fair opinion as to the effect of this reduction, but so far buyers have not responded, and will endeavor to force a further decline by continuing to buy from hand to mouth in view of the accumulated stocks and the dull retail trade, which they seem disinclined to foster. Australian butter has been selling relatively freely. Importers are able to meet the market and keep fairly clear of stocks. As buyers are well disposed to Australian butter, it seems that prices of Australian and New Zealand must be on too high a level for the public, or the unusually small arrivals should go readily into consumption, this being the main selling season for these descriptions and arrivals during January being light. Danish has been selling freely at high prices, but this is :i special trade with a particular section of the community who demand Danish cask butter and will take no ether description regardless of respective values. The margin between Australasian and Danish is nevertheless remarkable, and gives cause for reflection as to the reason for the deplorable state of the butter market resulting in the accumulation of New Zealand marks at a time of year when arrivals should be eagerly inquired for to meet the consumptive demand during the European winter.