LONDON BUTTER STOCKS

Evening Post, Volume CXII, Issue 60, 8 September 1926, Page 10

LONDON BUTTER STOCKS

STORES CAN PROBABLY BE CLEARED

BEFOEE NEW SEASON'S BUTTEE SELLS IN QUANTITY.

The inability of New Zealand butter | stored in London (held by New Zealand factories for high reserve prices) to reach the expected figures has been apparent for some time, and the events of the last few days show that it is a generally recognised Tact. This open confession has cleared the air; the nest thing is to clear the stores. That could bo accomplished in no very long time if holders met the market. It is not to^o expected that the big accumulation in the London stores (the New Zealand portion of which has been estimated at (350,000 boxes) would in a month pass completely into consumpr, tion, but it could pass (if the prico was right) into the possession of people in whose hands it would not continue to be (as now) a shadow overhanging the whole market. It is estimated that if holders will relinquish the 180s idea, and will sell, the London market, by the time (say, November) when new season's New Zealand butter arrives in London in :iny quantity, will be clear. The main objective is a clean slate for the new season. It can be done. The telegraphed remarks of Mr. W. Goodfellow (printed, below) were submitted this morning to the secretary of the New Zealand Dairy Produce Board (Mr. T. C. Brash), and were endorsed by him. Mr. Brash remarked that the heart of. the matter was the disposal of the London stored stocks of butter in good time to enable this season's butter to be marketed. The statement is made by Mr. Goodfellow (with Mr. Brash's endorsement) that the scale of the board's advances will not be affected so far as the 20th September payments are due; and that speculation on what may follow is premature. The following is taken from a circular recently issued by the board to dairy companies:—"Until further advised the advance on shipment or on store warrants will be as follows: Creamery butter —'Finest,' Is 4d per 1b; 'first grade,' Is 3£d per lb; 'second grade,' Is 3£cl per lb. Whey butter: 'First grade,' Is Id per <lb; 'second grade,' Is per lb. . . . Until further notice the advance on cheese shipments will be as follows: Full-cream factory cheese, 'finest,' 7jd per lb; 'first grade,' 7Jd per lb; 'second grade,' 7d per lb." Low realisations of butter stored for some time by factories may result in the advances not being reached in individual cases. And, in a general way, lower advances and realisations will, of course, affect the purchasing power of the whole country. But prices remain payable for the farmer whose costs are right.