BUTTER TRADE

Evening Post, Volume CXIV, Issue 126, 24 November 1932, Page 14

BUTTER TRADE

CANADIAN POSITION

REPORT TO MINISTER

An interesting review of the butter position in Canada during last month is contained in advices the Minister of Industries and Commerce! (the Hon. H. Masters) has received from the New Zealand Trade Commissioner in Canada (Mr. J. W. Collins). . '

"The surprising anomaly exists of an announced expected shortage of nearly 9,000,000 pounds of butter in Canada, and yet prices remain stagnant," states the report. "During October in the Eastern market the highest quality creamery has been quoted at 20£ cents at Montreal, and 21} cents in Toronto. Trading has been' slow and buyers show little interest, except for sufficient- stock' to. fill immediate requirements. The market in Vancouver is somewhat better, highest quality prints realising to retailers 26 cents."

The production for the eight months which ended on 31st August last compared with the corresponding period of last year showed for the whole of Canada a decrease of 5.5 percent. The comparative decrcaso in. the final report of holdings, of butter in all Canada on Ist, September last was 22.6 per cent, for 'creamery and 19.59 per cent, for dairy. The preliminary report cf holdings for Ist'October indicated ft shortage of, 8,193,000 pounds over last year's stock in creamery grade, and of nearly 1,813,000 pounds on the five-year average.' The decrease in production continued in September in most of tho provinces. .Weather , conditions ' had affected the Prairie ,and Western Provinces, but in Quebec and Ontario, the two great butter producing areas, the weather had continued to be milder than usual.- The'dry season, combined with the low prices for butter fat had cheeked output, and that had contributed to the-decline in stocks.

"It must not, however, be assumed," the report concludes, "that because-of the near approach of winter the stock position will show further recessions. Whilst the prairiei supplies may not increase the production on Ontario and Quebec is dependent to a large extent on market prices. Ample- and cheap winter foods are available for milch cows, and if the price of butter rises to 25 cents it is possible that this will bring about greatly increased supplies in the two provinces which already provide the bulk of the butter for Eastern Canada."