PRODUCE & MARKET REPORTS FROM DAY TO DAY

Evening Post, Volume CXXIII, Issue 133, 7 June 1937, Page 12

PRODUCE & MARKET REPORTS FROM DAY TO DAY

CHEAP BUTTER

RETAIL 10D : PER LB

AFFECTS MARGARINE SALES

(From "The Post's" Representative.) LONDON, May 8. How low-priced butter had affected sales of margarine was shown by Mr. F. D'Arcy Cooper, chairman of Unilever, Ltd. Notwithstanding "contin. ued Government interference in certain countries and low butter, prices throughout the world, the turnover for the second year in succession increased, this time by 60,000 tons," he said. "Th 2 more or less normal sales level of about 750,000 tons per annum has now again been reached. We owe this favourable development chiefly to the two "free" countries —England and the USA" By "free" he meant "free from Government, interference," he said. _ "The low butter prices in England continued to be a considerable drawback to a further recovery," Mr. Cooper continued. "It is strange that butter is one of the few products in the world the price level of which has hardly moved from'the lowest point known during the depression. "In England a price of lOd per pound retail 'has been common, and sales of butter remained on a very high level. It is chiefly the continuously increasing production in New Zealand which is responsible for this glut, Australia showing a decline, but Denmark maintaining its output. "The estimated world production ot butter, excluding Russia and some J tropical countries, amounted to 3,294,000 tons, against 2,891,000 tons seven years ago "Nevertheless, the consumption of margarine in England is again on the increase, as is shown by tne number of pounds used per head of population: 1934 7.91b; 1935, 8.41b; 1936, 8.61b, although this figure is still a,long way from the 1929 consumption of 12.91b. There is, therefore, plenty,of scope for further development of our margarine business in England. HIGH-PRICED MARGARINE "It is odd that the position in Holland, the "home" of margarine, should be. completely the reverse. There the Government artificially supports the farmer in producing on an uneconomic basis butter in ever-increasing quantities: against 86,000 tons in the days of prosperity in 1929 Holland produced in 1935 96,000 tons, and in 1936 103,000 tons. ■ In order to finance this support of the farming, industry, the Government levied high excise duties on margarine, which the lower and middle Classes had to bear. As a consequence the retail price of margarine in Holland is double that in England, and consumption went down from 20.11b in .1929 to 14.51b in 1935 and 13.61b in 1936.