BUTTER MARKET.

Wairarapa Daily Times, 8 December 1925, Page 6

BUTTER MARKET.

MR GOODFELLOW’S OPINION. (By Telegraph —Press Association.) HAMILTON, Monday. Commenting on the slump in the London butter market, Mr W. Goodfellow, managing director of the N.Z. Co-operative Dairy Co., said that while the London market was comparatively good at the moment, this was only due to the Christmas demand. As soon as buyers secured their requirements to carry over the holidays, it was obvious there would be a substantial fall ini the market during January. Approximately 14,000 tons of New Zealand and 7500 tons of Australian butter were available on the British market. 'The weekly consumption of imported butter in the. United Kingdom was estimated at 5000 tons. It was apparent that New Zealand and Australia would supply the total import requirements, and in addition butter would be arriving from Denmark, Argentine and other countries. The forward position, said Mr Goodfellow, was fairly satisfactory, due to the reduction by approximately 20 per cent in the exportable surplus from New Zealand. American stocks were considerably lower than last year, and there was a possibility of considerable quantities of Danish and New Zealand being required to fill the American demand. It was exceedingly difficult to forecast the extent of the January fall in prices. Some authorities estimated tfuit the market would go down to 160 s to 170 s. However, these very low prices would and could no doubt lac obviated by New Zealand factories cabling to their London agents fixing a minimum selling price. In this way it might be posible temporarily to prevent the market going below ISOs, but without a central authority acting on behalf of the companies the action would be spasmodic, and to a large extent ineffective. Mr Gooclfcllow said that this was another glaring instance of the necessity for absolute control. Until the Board had absolute power it was impossible to do anything worth while by simply tinkering with the market. Consequent on the London market decline, a reduction of Id a pound will be made in the prices of all brands of butter in Auckland on 'Wednesday, making the retail rates: Superfine Is 9(1, Ist grade Is 8(1, 2nd grade Is 7d.