DAIRY OUTLOOK

Evening Post, Volume CX, Issue 140, 11 December 1930, Page 12

DAIRY OUTLOOK

STATE OF THE MARKET

MORE BUTTER EATEN

There is no question that the low prices to which New Zealand butter has fallen during- the past fen- weeks lias materially increased . its consumption in the United Kingdom, as, "indeed, it has done in New Zealand itself, for the local market affords a valuable outlet'for production of butter, and its price is based upon the value of the produce for export. This increased consumption overseas and in New -Zealand- should greatly help in the disposal of increased supplies. However desirable an increase in the returns from overseas, markets may be it would obviously -check consumption if the price were substantially raised, but it would not afl'Sct the increasing production. The butter that is being made is beinr eaten and in greater quantities than ever before, and therefore is not. piling up holding changes nor overshadowing the market for oncoming produce. According to the Empire Marketing Board, stocks of all butters in store in the United -Kingdom at Ist December were 320,380 boxes, equal to a fortnight's British consumption. The Dairy Board's estimate, of New Zealand butter in store in the-United Kingdom as as sth December was 3626 tons, compared with 3700 tons at the corresponding date of last year. The board also reports a clearance of all stored stocks of New Zealand butter held at Home. These stocks have rather prejudiced the market for new season's produce,' and their disappearance no doubt explains the upward trend of the market to-day. SALES FORWARD. ' A parcel of some 10,000 boxes of butter —the first f.o.b. purchase of the current season—was recently made in the north at lOd. The f.o.b. market then hardened and business has been reported at 10 1-Sd, lOttd, .10 3-Bd, and on Tuesday at lOVsd, but the volume o£ such business is relatively small. Messrs. A. H. Turnbull and' Co. report that early in November offers were made for .fairly large, parcels at about 10% d, f.0.b., December : and January shipment, but factories generally at that time preferred to adopt a policy of consignment. As the market weakened, buyers' ideas dropped considerably, and apparently quite a number of sellers became nervous, with the result that considerable business was done at round about 10'10.6th to 10 1-Sd for December, January, and February shipment. With the improvement in the "spot" market, buyers advanced their limits, and offers -were made np to 10 7-16ths, but factories seemed to become mor.e. optimistic, and very little business is reported at the advance. HEAVY ARRIVALS. In considering the statistical position of butter and cheese arrivals must be taken into account, and these are heavy, as the dairy industry is ever expanding. The quantities. just landed and presently to arrive are' as follow:— ' ' •'•■'• • • ..■'.- 19S0. 1929. Butter. ■•' ' • Boxes. Boxes. November. .'■'. 299,000 209,130 December 345,000 274,928 January... ........... 475,000 343,935 February 407,000 292,603 Cheese. Crates. Crates. November 65,000 40,294 December ~..;...„ 133,000 90,184 January 180,000 159,562 February. 128,000 120,406 The 1930-31' arrivals are approximate. Cheese is reported.as.in better demand at lower prices,- although--Messrs. -Weddel and Co. inform Messrs. Turnbull that they do not expect any great improvement in the cheese market for the time being.