DAIRY PRODUCE

Dominion, Volume 32, Issue 154, 25 March 1939, Page 4 (Supplement)

DAIRY PRODUCE

Cheese Falls Sharply The sharp and severe fall in London cheese value is the outstanding current feature of the dairy produce market. White cheese has fallen 7/- in 6 weeks, almost 10 per cent., while butter has dropped 4/6, or only Si per cent. One ‘has to go back 23 months, to April, 1937, to find cheese so low as now, at 60/-. It was then down to 59/6 for that month, but quickly recovered to average 71/3 for May. Cheese has had wonderful steadiness for a long period; averaging very close to 70/. for nearly two years, seldom going away more than 1/6, either higher or lower than that base price. Current stocks of cheese are a little above normal, but no more so than for butter. Supplies have not been excessive. It would really appear as if a change in public taste has given the market a set-back. It is possible that, cheap meat is the enemy. Our mutton is selling at 2|d. on Smithfield, and so retails at Sid. for cheaper cuts. Cheese has been long retailing at 9d. lb. Even allowing that cheese gives no waste, is all solid “meat/ and that old ew§ mutton is wasteful, the trend should be toward the mutton because of its cheapness. Cheese has been now reduced to Sd. lb. retail, and this may aid the position.. In view of previous movements, it is quite probable that cheese may make rapid recovery. Meats have n rising tendency at Home, and for most markets bottom appears to have been touched two or three weeks ago. Butter.

N.Z. finest salted : — Past fortnight’s; average .... Past month’s average 121/A year ago 118/118/- equals 15.10 d. lb. butterfat payout. Cheese. N.Z. white: — Past fortnights average .... 61/b Past month’s average 66/3 A year ago 68/9 61/6 equals 13.70 d. lb. butterfat payout. The guaranteed prices, at 124/6 and 74/- respectively equivalent, show * a moderate loss on butter, and a severe one on cheese, at present market levels. It should be noted that rich autumn milk gives a low payout for cheese. The price quoted would have paid out 0.554. lb. fat more on October-November supply. Butter is now at precisely the level of a year ago. The situation differs, however in that now butter has fallen to 118/- (from 122/-), and then it had risen to that, from 111/6 for February, 1938, average. The current price is really a very good one, taking the long view. Stocks at 765,000 boxes are 55 per cent, up on a year ago. But JanuaryFebruary supplies had been slightly below normal. Supplies in sight, however, are above last year’s. The general position is reasonably good. The 3/- decline on last month is not untoward. It is pleasing to see the retail price of our butter back to 1/2; that is a safer price to hold margarine in check.

Danish still holds a big premium over New Zealand, 17/6, and Australian has closed up, to sell at only 1/- below us. A noteworthy event has been Australia’s shipping more butter than did New Zealand for January-February. The Commonwealth then was Britain’s No. 1 supplier.