"HOLDING" FACTORIES

Evening Post, Volume CXII, Issue 56, 3 September 1926, Page 8

"HOLDING" FACTORIES

. 4 — BUTTER SITUATION AT HOME LONDON COLD SPACE TAXED STORAGE AT ABOVE-MARKET RESERVES. Though the latest available London •eport by Dalgety and Company, Ltd., >n the British dairy produce market .s dated 20th July, it contains statements and comments that have a direct bearing on the situation to-day, for the strike and the over-storage have not abated, nor has the August-September market assumed any better price-com-plexion than obtained in July. Then and now the price of butter may be described as falling under 170s. ARRIVALS GO TO STORE. The storage of New Zealand butter has been going on, and the feeding of the market has been going on, as parallel but independent events. The following passages quoted from-, the' report hit off the position:— "In, spite of the extreme dullness there has been no serious reduction in prices for finest quality butter, which are, at present, much below those at this tizno last year. This may be accounted for by the fact that the major proportion of -New Zealand arrivals are placed into cold storage immediately upon landing, being limited in accordance with factories' instructions, whilst supplies of finest Australian are light. In the meantime the market is not starving for goods as a result of this 'holding' policy, because there is an adequate alternative, at present, in butter from tho Continent, which is quite sufficient to meet the reduced demand. . . . Up to the present there have been no spectacular rises in the butter market this season. Factories, which since December last year have pursued the policy of holding their goods in store hero at limits that havo been consistently over market values, have put away shipment after shipment, until it is now very difficult indeed to procure space in any cold store. From this it will be seen that although arrivals from Australia and New Zealand last month shofr such a marked fallingoff, the shortage is only, a 'paper' one. Buyers generally are fully aware of these facts, and this knowledge, coupled with the present economic conditions, influences them to continue their present policy of purchasing only their immediate requirements. To-day fresh landed finest New Zealand butter _b being sold at 168s to I7os, and Australian at 166s to 168s, the market continuing dull." ...... CONTINENTAL COMPETITORS. The passages in the report dealing with butter are as follow:—"The coal strike . .- ■ greatly reduces- the spending power of the people. . . . Margarine is substituted, but even tho consumption of. this is smaller. . . . Danish shipments continue heavier than usual, and the arrivals from Holland, Ireland, Sweden, the Baltic States, Siberia, and Poland (a comparatively new source of supply) are increased. A further factor, which for some weeks has curtailed the inquiry for imported butter, is that .English has been procurable at as low as ls 3d per lb., but the supply is now diminishing. Secondary aiid ' inferior Australian butteT is very of sale by rea_ori vof the cheapness of Continental descriptions. Finest Dutch and Latvian b*ye been sold down to 150s, whilst Siberian and Polish' can be bought at 140s] Lower grade Australian cannot compare with finest Siberian and Polish,- and since these two are offering! at such low rates the former ' description is neglected and stocks are accumulating; An interesting commentary on present conditions is provided by. the 'Import' statistics. Whilst, arrivals laßt month of 'cask' butter had greatly increased, shipments from Australia and New Zealand show a decrease of no less than 266,770 boxes (New Zealand 165,426, Australian 101,344 boxes) for the same period. Yet values of Australasian ar. 20a to 22s per cwt lower.". The remark that "a settlement of the present industrial situation should lead to appreciation in values" seems to have about as much force now as it had on 20th July. "INEXPLICABLE." Under the head of cheese, the same report states:-—"lt is logical to assume that owing to the diminishing purchasing power of the masses,. any article ■of food that. is,, comparatively cheap and requires a minimum amount of preparation would command the attention of the public. On the date of our last report, New Zealand cheese was worth up to 94s per cwt, and it was expected that the market would continue quiet, although no material rise is anticipated. It is inexplicable that since then the demand has diminished instead of increasing, the economic reasons and a spell of very hot weather notwithstanding. The arrivals during June from all sources are some 22,500cwt'less than during the same period last year, but values have fallen steadily, and to-day finest white New Zealand and new season's Canadian is offered at 87s to 89s, whilst coloured, which for some months during the beginning of the season commanded a premium over white, is now pressed for sale at 84s to 86s for' Canadian and 82s to 84s for New Zealand. Arrivals from New Zealand during June show a decrease of 27,182ewt, and from Australia 11,542cwt, as compared with June, 1925, whilst quotations are about 20s per cwt lower."