BUTTER PRICES.

Franklin Times, Volume 9, Issue 610, 22 February 1921, Page 5

BUTTER PRICES.

DECLINE EXPECTED. A further steep decline in butter prices, according to a London cablegram, is anticipated after decontrol. The Food Ministry’s stocks are mounting rapidly, and it is generally estimated that the stock at the end of March will be about 30,000 tons, to which must he added part of the February and all the March shipments. So it appears likely that the Ministry will have to carry 40,000 to 50,000 tons over. Supplies greatly exceed the demand, owing to the almost entire cessation of buying by Germany, Scandinavia, and other European countries. Practically the whole Danish output will, be available for Great Britain, to which Danish imports have been quadrupled, reaching 1000 tons weekly, instead of 500 tons fortnightly. It is anticipated that this figure will be greatly increased after March, when English and Irish production will be in full swing. The Food Ministry thus has little chance of reducing stocks. The decline in the value of copra and oil seeds has caused a lowering of margarine prices. Margarine is now being retailed in England at lid and Is per lb. Many people in England, the message states predict that butter will be retailed at 2s per lb before many months, and it appears likely that Australian and New Zealand producers will be faced with a comparatively low basis of values when the new season opens. The Imperial contract for purchase of Australian butter, it may be stated, expires on 31st March, and it is questionable whether the output here will then exceed laical needs, although supplies have been well maintained in Victoria owing to the favourable season. Exports from this State so far this season have amounted to 8172 tons, valued at £2*239,128.--“The Leader,” Melbourne.