DAIRY PRODUCE.

Waikato Times, Volume 98, Issue 15289, 16 July 1923, Page 8

DAIRY PRODUCE.

LONDON MARKET. Messrs Dalgely and Company, Ltd., report on the-London produce market, under date London, May 24, as under: Dairy Produce. —During the past month the outstanding feature of the provision markej. is the large increase in imports of ail descriptions of dairy products. The increase is so remarkable that we think it is well to give the exact figures. Comparing April, 1023, with the same month, 1922, the nett increases are as follows: — Butter, 58,0ilcwt; cheese, 120,183 cwt; margarine, '>2.3B3ewt; bacon, 119,499 cwt;; hams, 40,9095 wt; eggs, 522,605 long hundreds. Therefore, in one month, excluding eggs, we have imported of the various articles of provisions enumerated 81,050 tons more than during the same period last year. Butter.—The chief increase is from Denmark, 140,835 cwt having arrived in April as against 90,8850 wt a year ago—this quantity being considerably more than one-quarter of the total imported quantity into the United Kingdom. These figures show an increase of more than 50 per cent on the imports of a year ago, and it is only natural that the effect upon the market should be marked. Naturally it has been impossible to sell this large quantity of Danish without making very liberal reductions in price. At the end of March, Danish was quoted at" 200 s to 202,5; finest New Zealand, 188 sto 1925. To-day the values arc respectively 153 s to 15'!s, and 140 s lo 1425, i.e., roughly both kinds have declined to the same extent, viz., about 50s per cwt. As we have previously pointed out, Danish, of course, mostly goes lo the Midlands and the North, but the effect it has in these districts is ultimately reflected in the South, because if Danish butter is relatively high, then orders for New Zealand and Australian in these parts increase—whilst the reverse occurs if Danish is cheap by comparison. The following figures with regard to shipments of Danish butter will be of interest. Exports for week ending 12th May were as follows: —To-United Kingdom 2020 tons, America 170 tons, European countries 20 tons, making a total of 2210 tons. This very large quantity must obviously have a marked effect upon the sale of New Zealand. With these heavy supplies of Danish it is not surprising ' tnat New Zealand and Australian values have met with the serious reduction which has occurreu. A corresponding decline has, of course, occurred in retail urices, and the multiple shops are now selling finest Danish at Is 6d per lb, and finest colonial at Is 4d per lb. A comparatively short time ago 2s 2d per lb was a common figure, and judging by the larger imports it might be assumed that an increased consumption was actually taking place. It must, however, be borne in mind that large quantities of New Zealand and Australian have been placed in cold stores, and that therefore, it is very diflicult to estimate the actual effect of the lower prices. We believe also that the public have, to a large extent, switched over from butter lo best margarine at lOd to Is per lb. The quality of the latter is sufficiently good for them not lo break away from this change unless particularly tempted, and the opinion of many shopkeepers is that butter at Is 4d is not sufficient inducement. Possibly a further 2d per lb off the price would materially transfer the, demand from best margarine to butter. In the meantime, the market continues exceedingly quiet. Purchases by both wholesalers and retailers are of a hand-to-mouth character, and as there are still large quantities of. colonial butter landing and near at hand, it does not seem probable that there will be any material recovery in the near future. The total- cargoes afloat on 9Hi .May were: 45,222 boxes Australian, 369,000 New Zealand, together with 50,573 boxes Argentine.

Chdese. —The predominant factor in market fluctuations, viz., the laws of supply and demand, may be referred to as indicating the chief cause, of the further fall in t prices since our last report. The net increase in imports of 142,055 cwt during April, as comared with the preceding month, was ertain to depress values, and as the i-rivals from New Zealand taken cparately in this comparison show an of 127,402 cwt, it is not altojether surprising that quotations of Jiis descriptions are much lower than they were a month ago. White is down 14s, and coloured, which was then at a premium, is now offered at !!ie same price, i.e., 10s lower. Today's prices for white and coloured arc 84s and BGs (exceptionally 88s) respectively. This reduction has hecn .nought about through the increased upplies, the general trend of butter ind cheese to decline in value, and Ihe pressure to sell Canadian, States, .nitch and .English, all of which are

ooming forward in increasing quantities. Canadian is pressed for sale at iOs c.i.f. without finding buyers. Tho multiple shops anticipate that the retail price of cheese will have to be reduced to lOd per lb. At present buyers are giving preference to New Zealand, as it is ready for using, whereas Canadian fodders are mild and insipid, but in the course of a few weeks' time Canadian will arrive with more flavour and New Zealand with lot) much'taste from keeping or top late-made, and then the preference in favour of the latter will be less pronounced. Buyers all the time require cheese that can be retailed at once and not have to be kept while they mature and lose weight, but they do not want full flavoured or strong cheese. A factor which must be considered is that the consumption of cheese will probably further increase considerably as the weather gets warmer and the labourers get on Hie land, as it is a favourite midday meal with these people.