BUTTER AND CHEESE

Dominion, Volume 14, Issue 274, 13 August 1921, Page 8

BUTTER AND CHEESE

BUYERS STILL INACTIVE MERCHANTS’ SURVEY OF THE MARKET The position, in the butter and cheese markets has not changed. The buyers representing British importers are still withholding offers pending 'further . advices from their principals. Quotations from London indicate that tho price of New Zealand cheese is slightly better than tho 130 s. per cwt. mentioned in some private messages, and there is a report that the British Government is going to increase the price of butter sold from tho Government stocks. The situation is uncertain, and is being watched with keen interest Iby those concerned. A dairy produce circular issued yesterday by Messrs. Joseph Nathan and Company contains interesting comment on the dairy produce market. “We are most desirous to remove any undue pessimism,” says the firm. "The right way to view the position is that sometimes the ‘bulls’ are at work and sometimes the ‘bears’ are at work in the market, just according to how the general tradin" conditions are working. It must be remembered that in the London dairy produce trade New Zealand is not the only produce interested or affected. The trading there applies to all dairy produce received from other parts of tne world as well as New Zealand. In the first place, Mr. M. J. Nathan has, in his adrkesses to most of the factories, pointed out that the butter and cheese market is largely ruled by sentiment. Consequently advantage is taken of , the slightest indication by tho bulls or ‘bears’ to try and influence the market in whichever way they wish it to go. Now, there have been some beneficial raws in England. We have had no reports that they are general, but advantage is taken of this point. "IVe receive cablegrams eveiy day from lour London office, and, though there is tin easier tone, our advices show that the market remains fairly steady, but quiet without any big fall such as newspaper reports would indicate, and our people at Hom? still taken an °P mistio view about the returns that will ho received for New Zealand butter and cheese. The recent buying of cheese has no doubt been for special orders, and not in any way speculative, so that when these orders are filled houses who do occasionally speculate in cheese would no doubt withdraw, feeling that the rates are too high. This in itself would have an easier effect upon the market, and is quite a manoeuvre that is frequent in connection with trade of this description. Therefore, as from the point of view of the quantity to be purchased there were not many buying orders out here even at 11 l-Bd. to 11 o-Sd. tor cheese, and still fewer for butter at any price, too great an importance possibly is being placed upon the withdrawal of offers. . , ‘‘Our object in sending this circular is because we see no reason why there should be a. pessimistic tone imported, into butter and cheese prospects to-day, because not only does the statistical position point to reasonable returns, but also the prices are to-day on a range of values which do not look to be at all dangerous. Now, take the statistical point for butter. England imported in pre-war days anything from 220,000 to 250,000 tons of butter. Siberia used to supply between 40,090 and 50,000 tons to Great Britain, and some 20,000 tons to Germany. She. is dead as far as we are concerned Denmark used to supply about 80,000 odd tons. Last year she only supplied about 40,000. Die balance of it being sold in Germany, France, Belgium, and th® United States. Scandinavia used to supply about 11,000 tons, and Franc® about 11.000 tons. Neither of these countries is supplying any to Great Britain but on the contrary France ia a buyer of butter; so it appears to us that England must rely upon Australia, New Zealand, and the Argentine tor her butter, which probably means about 80,000 tons. "That, the public of England will cat butter, no matter what price it is, was proved during the war time, when they paid up to ss. per lb. for uncontrolled English butter, although they could buy margarine at that time from Is. to Is. 6d. per lb. Naturally, if butter is 2s. 6d. per lb. and margarine Bd., 10d., and Is., according to quality, the consumption of butter will go down, and the consumption of margarine will go up, but there is plenty of room for the consumption of butter to go down, when the above figures are taken into consideration. If there were not margarine on the market, butter would probably be worth ss. per lb. The'United States are buyers of butter. Inquiries have been out here from that source. "Dealing with cheese, even as far back as 1908 Great Britain imported about 88.000 tons of cheese from Canada, and under 14,000 tons from New Zealand. Last year' the Canadian supply was about 43,000 tons, and the New Zea-' land supply about 38,000 tons—only an increase of 20,000 tons spread over twelve years, and the population has increased largely. We are informed that the Canadian supply for this season will be no greater than last season. Again, we have reports from our London office, and from several large wholesale dealers in London, that cheese is going into consumption where it has never gone before—that is to say, amongst the higher classes. This is duo to the recent coal strike, thereby causing a shortage- of coal, and the recent very hot weather making a meat diet unsuitable, besides which the heat has been too intense for people to do much cooking. The result is that these people, have become used to cheese, and our information is that a very large consumption of cheese is anticipated. "Wo therefore see no reason to alter the opinion we have expressed many a time in meetings with factories, that there is no reason to be anything but optimistic, feeling that the factories will be satisfied with reasoDtvble prices for their produce somewhat on a parity with what are to-day’s market values, as by the trade in their rei cent buying.”