THE CHEESE' MARKET

Dominion, Volume 9, Issue 2877, 15 September 1916, Page 8

THE CHEESE' MARKET

IMPERIAL GOVERNMENT'S ' INTENTIONS NO INFORMATION FROM LONDON The cheese market has been left in an condition by the delay in tho |announcement of the intentions of,the {Imperial • Government regarding the re[quisitioning of supplies or tho fixing of '■prices. ■ A cablegram published somo days ago stated that the British authorities • intended to check the rising prico of cheese, by fixing a maximum ■price or by requisitioning supplies for ■army purposes. It was stated then ■that trading was at r, a standstill on '.the London cheese market, and. tho 'Hows tended to stay tlie operations of .merchants and hgents in this country. 1 Jvo further information on tho .point was received locally up to yesterday '

. Wellington merchants presume that •the Imperial authorities are cousidorjiyg, proposals in the direction already vindicated, but in the absence of definite ..information the position of the cheese" is peculiar. Some offers made ':-"U> dairy companies prior to the report, ""from London have been withdrawn by '"•'export buyers, but most of the factories /.had already arranged for the sale of ~ their season's output, and the arrangements are standing in .the meantime.' . Cheese is now reaching the stores, < though, the busy part of the season has • still to'" come,- and it is annoying for ; everybody concerned not to know what the market conditions are going to be. If the maximum price in London should he fixed at a rate less than tho price .arranged in New Zealand, olus freight., ..insurance, etc., some of the contracts .■'already made probably would not stand. Agents have contracted for tho sea-' ■ 'son's output of certain factories at : 9Jd. per pound, and London buyers were authorising the payment of this rate immediately before the announcement, that the Imporial Government intended, , 'to tako action in the matter. The exporter who has paid 9Jd. f.o.b. in Well- - ington requires to' sell his cheese at not ! less than 102s. per cwt.-in London in order to allow himself a small margin "_/of profit as commission. The price . juoted in the last market report was ,103s. to 1008. Some agents who bought .i.carly in tlie season are getting cheese "from the factories at lower prices, but

few of them are paying less than 9d. per pound.

It is pointed out that tho Imperial authorities, if they fix a maximum price, may deal either with the wholosalo market or tho retail market, or ■\\ith botli. The fixing of a wholesale price materially lower than tho rulinf rates would affect the Mew Zealand exporters directly, but a maximum retail price would leave opportunity for 6omo adjustment by tho traders in the United Kingdom. The margin between the ruling wholesale prico' and tho retail price appears to bo very largo at tho present time in London and othor centres.