THE PRICE OF BUTTER

Dominion, Volume 8, Issue 2436, 15 April 1915, Page 8

THE PRICE OF BUTTER

BRITISH DEMAND FROM AUSTRALIA. IBy Telegraph —PreES Aesocletion.) Auckland, April 13. The shortage of supplies of butter in New South Wales and Victoria owing to 1 the drought, has created a brisk demand for supplies from New Zealand and other outside sources. As a result, the value of butter has been increased, and the Dairy Produce Committee has decided to advance the local wholesale price from Is.'2d. to Is. 3}d. per lb. from to-morrow. During the past few days parcels of first grade butter have been purchased for shipment to Australia at rates considerably higher than the export value fixed by the London rates. A shipment of 1500 boxes was made by the Riverina to-day, its value being estimated at Is. 3d. per lb. f.o.b. Representatives of the leading dairy companies state that the local price now fixed for standard brands is hardly on a parity with the export value, as the cost of moulding into pats and of distribution is considerably more than id. per lb. 'The present price is the highest fixed this season, ithe highest previously having been Is. 2Jd. from January 22 te March 2, when values in London were exceptionally advanced. The retail price will probably be raised from' Is. 2d. to Is. sd. The demand from 'Australia will probably be an important factor in the dairy produce trade during the remainder of the season. The Recent rains, have greatly improved the Australian pastures, but they came too late to compensate for the shortage of the production during the dry period. Merchants responsible for the local wholesale supply, and who have to store large quantities for the local winter requirements, will now have .to meet the competition of Australian ( buyers as well as of tho demand from London. Further advances in the local prices therefore seem likely. (By Telegraph —Press Association.) Auckland, April 14. The exportation of butter from the Auckland province has practically ceased for the season. Two shipments were made to Australia on Tuesday, the IlivI erina taking 500 boxes and the Victoria 1500 for transhipment at Wellington for Melbourne. The bulk of the Riverina's shipment' was forwarded in response to a cabled order from Melbourne, and it is presumed that Melbourne'merchants who had made contracts to supply Manila, South Africa, and other markets before the Australian shortage was anticipated, are taking advantage of the lower values ruling in the Dominion te obtain the supplies required by their contracts, thus releasing the dearer Australian butter for local consumption.