DAIRY MARKETS

Evening Post, Volume CXXIII, Issue 123, 26 May 1937, Page 14

DAIRY MARKETS

PRICES IN LONDON

ABOVE GUARANTEE "Evening Post," May 26. Notwithstanding the "heads I win tails you lose" principle on which the guarantead price for dairy produce is based, it does not appear to be wholly acceptable to all the dairy farmers of the Dominion. Is this because the market has lately moved in favour of the Government, in other words the taxpayer, ultimately responsible for any losses that, may be made under the guarantee? ■ , • The public should, of course, know the principle of the guaranteed price, but it may again be reminded that this principle is the guaranteeing of a price to the producer,, and if thereis anything left over he will get it; if there is any loss the Government will make it good through the medium of the consolidated revenue and the consolidated revenue is found by the taxpayers. Estimates have been made that the loss to the Government on. the guaranteed price for butter and cheese this season will be £2,000,000. This estimate may be under or overstated, but it may have to be modified, for the London markets for New Zealand butter and cheese have gone beyond the prices guaranteed by the Government for those commodities, namely 106s per cwt for butter and 61s per cwt for cheese, both in sterling, hence, perhaps, the dissatisfaction of some of the producers who are guaranteed fixed prices of ,117s 3d per cwt for butter and 63s 7 ( d per cwt for cheese in New Zealand currency, these returns being on grading points for "finest" grade butter and "first",grade cheese. Movements of the London market, shown in graphic form hereunder, are reported week by week by the Primary Products Marketing Department, arid are taken at the highest prices reported and averaged for the month. Butter shown is salt butter; cheese is white; as forming by far the greater part of the cheese exported. Practically all the butter and cheese exported goes to the United Kingdom, the exports for the "dairy" year ended July 31, 1936, being as follows:— ■ , Exports, 1933-30. Destinations. Butter. Cheese. Boxes. Crates. United Kingdom 5,504.527 -1171,203 U.S.A. and Canada .. 93.577 2,100 I Elsewhere 53,464 1,539 .Total 5,657,808 1.174,002 The course of the salt butter market, since April has been upward. For the first week in that month the prices were from 99s to 100s per cwt and they rose to from 107s to 108s. On May 1 they were 108s, with 109s for extra * lines, falling during the week to 104s, rising to from 106s to 106s on May 15, and touching 110s, and closing, on May 22, at 108s to 109s. ,- . ~:. ; THE BUTTER MARKET. ;'-. i PER _: > 1' V- • ■■'..■ 'ci : CWT,'& O O ..g \-< |< ■ no ; )07_i_npl: 1 1 1 y — 106 _i /GuaraneedPrieeLevel. 105 | I -•' 1f... 104 I | / 103 | / vT 1/ ' 102 II / T_ L | 101 |W 1 ■.-'/' 100 _]/ 1. J [ 99 . I [;_ 98 ~J _L^_ r _ 97 _~ , ; I 96 Y_ T :■ 95 T_ T_ j - «: IJL— 92 ' \ _f_ 91 ~~T I , 90 . I 88 • __ILL 87 ~__^ /]/ B*l 111 1111 1 1 THE CHEESE MARKET. \ •". - • . CWT. gj O O b3< g <£< ■Shillings JH .Q.Z,°_ "^ _"• _ 2:_ <i S llllllJllH 68 | /_ ~ " :JL : L_ "__qr___r_ 64 ; -4---62 1 J>hVl- Hi 61 _Guardnteed Prce Leve j 59 —_ r -t_i 58 \ I » Iltl_ll ~» IJ__ -■ .55 T_7 54 ' _^"T ■ 53^ :_II!£ZZZ52|~^ The period dealt with is from September 1, 1936, to May 22, 1937, the Government having taken over the export trade.as from; August 1, 1936, and the produce so dealt with would arrive in September. In the absence of exact information as to the quantities, grades, and, descriptions of dairy, produce shipped and sold, it is impossible until the end of the season and auditing of returns to ascertain whether the guaranteed . s price will result in gain or loss to the Government.