COMMERCIAL REPORTS.

New Zealand Journal of Agriculture, Volume VI, Issue 1, 15 January 1913, Page 124

COMMERCIAL REPORTS.

BRITISH DAIRY-PRODUCE MARKETS.

The High Commissioner for New Zealand in London reports as follows, under date of London, Ist November :

For some time past the markets for both butter and cheese have been somewhat unsatisfactory.

In the butter-market an outstanding feature has been the restricted supply of finest quality and the heavy offering of secondary, grades. It is known that this year, in contradistinction to last, when nothing was available for the purpose, very large supplies of butter have been held in cold-store. . These for weeks past have been steadily drawn upon, and considerable quantities have been offered for sale. The stored butters, naturally, have opened out in but secondary condition, and have been purchased at prices much below those realized for sound “ best quality ” shipments that have been coming to hand. Unfortunately, there is still a considerable quantity of stored butter to be cleared. For really “ finest ” butters, however, there has been a steady demand at good prices, scarcity having helped to maintain values. - ■

Another feature is that, whereas last year the Continent was, owing to the drought, a large buyer of butter on the London market, this year there is not this demand. On the contrary, shipments are being made from the Continent to this country. Brom France alone, from the beginning of August up to the present time, supplies have been nearly three times as great as last year. Considerable shipments are even now coming forward, and, judging from the prevailing climatic conditions on the Continent, these are likely to be continued for some time.

Argentine supplies are expected to show a great increase this season over former years. The quality of Argentine butter is recognized on the London market as being excellent, and what already has come to hand has given satisfaction, the price so far realized for it being 118 s. per cwt. for salted and 120 s. per cwt. for unsalted. These prices are the same as realized for Australian new season’s butter.

The outlook for New Zealand butter for the coming season, which may be said to open with the arrival of the s.s. “ Turakina ” on 7th November with 8,350 boxes,' is difficult to determine. It may be described as doubtful and speculative, and is not altogether too encouraging. It "is understood here that little, if any, butter has been sold forward in the Dominion, and that nearly the whole season’s output will come forward on consignment. If this is so, it is natural to conclude that an effort will be made to “ bear ” the market and to depress prices. Buyers who in former years made extensive purchases in the Dominion of factory outputs may be expected to resent the rejection of the high offers they have this season been making for outputs. Being .compelled to buy for their trade requirements, it may be anticipated they will attempt, if possible, by keeping off the market and by buying only from hand to mouth in small quantities, to effect their purchases at as low a figure as they can. Naturally, they will not assist in the encouragement of independent consignment. lam inclined to think that shippers’ representatives to whom consignments are made in this country will have to be firm and fight strongly in their clients’ interests to realize satisfactory prices.

The strength of the position in the New Zealand consignor’s interest lies in the fact that choicest butter is in comparatively small supply, and that the demand for such quality is good ; that the bulk of New Zealand butter on the market here is recognized as coming up to that standard ; that New Zealand supplies are expected to be less than last year, on account of the transference of a considerable portion of the make in the Dominion to Canada, and the change by some factories from buttermaking to cheesemaking this year ; and that the general desire of the better-class retailers who formerly have handled New Zealand butter will be to again place it before their customers.

The market for New Zealand cheese, unfortunately, has recently been showing signs of weakness, and the outlook for the coming season’s sale for shipments from the Dominion is not so hopeful as could be desired. The make throughout England this year has been large, owing to the wet season giving heavy grass crops. Stocks have been held back from sale to a considerable extent all over the country, and the total available supply of English cheese is larger than usual. Canadian supplies are also considerable, and although it has been reported that the local consumption in that country has been increasing, I am informed that the stocks available for shipment to this country are heavier than they were last year. Values of Canadian cheese have for some weeks been quietly but steadily declining, and have fallen from 665. to 61s. per cwt. c.i.f. during the past six weeks.

In my opinion, the markets for both butter and cheese are more likely to become less active than to advance, and net returns realized by shippers are likely to prove disappointing to those who declined offers for their outputs at the beginning of the season.

Reporting* at a later date, 22nd November, the High Commissioner says,

Since making my last report to you concerning the markets in this country for dairy-produce the New Zealand season has commenced. The arrival of the s.s. “Turakina” with 8,350 boxes of butter and 1,200 crates of cheese, followed by the s.s. “ Corinthic ” with 22,000 boxes of butter and 7,150 crates of cheese, has thoroughly tested the market.

In my last report I stated that the markets for both butter and cheese were more likely to become less active than to advance. Unfortunately, my opinion has been more than justified, for the markets for both have become even more depressed than anticipated, and trade has grown duller each day, until now there is a feeling of doubt and pessimism that makes business almost impossible.

The large multiple-shop companiessuch as the Home and Colonial, Lipton’s, the International Stores, &c.—are drawing on their accumulations of cold-stored butters and on their supplies of cheese. The result has been that prices have been steadily declining.

The shipments by both steamers arrived in good order and condition. The quality of both butter and cheese has given satisfaction to buyers. The butter ex s.s. “ Turakina ” realized from 120 s. down to 1165., and the cheese from 63 s. to 61s. per cwt. The s.s. “ Corinthic ” shipments, however, have not met a ready sale, and to effect clearances from 116 s. down to l!3s. have had to be taken for butter and from 61s. to 595. per cwt. for cheese. Even at these quotations the whole of the consignments have not been cleared. •

The weather has recently been most unfavourable for the sale of dairy-produce. It is unusually mild, grass is plentiful, and butter continues to arrive in large quantity from the Continent, and especially from Ireland. English cheese, as I have previously informed you, is plentiful and is falling in price.

One very peculiar feature of the butter-market, however, is that, whereas all classes of imported frozen butter — Zealand, Australian, Argentine, and Siberian—been falling in price, the market for Danish has been firm, and that butter has fully maintained its value. ' .