BUTTER AND CHEESE.

Franklin Times, Volume 10, Issue 798, 9 January 1923, Page 5

BUTTER AND CHEESE.

THE LONDON MARKETS. The National Dairy Association of New Zealand, Ltd., has issued the following circular: — The shortage of cheese is becoming very acute. The receipt of cheese in Montreal u pto October 14th, 1922, was for the season 2,012,931 boxes. For the corresponding period last season the quantity was 1,369,326 boxes,, showing a shrinkage of 356,395 boxes ,or i 26 per cent.. The estimated stocks of Canadian and New Zealand cheese in the United Kingdom on Ist November, 1922, was'> .118,250 boxes. On the same date, 1921,| the quantity was 355,600 boxes. The quantity of cheese on the water from New Zealand at the present time is in very small compass. A factor in the cheese position at present is the low retail price, viz., lid to Is per lb. This cannot continue, and the retail price must shortly be advanced to Is 2d per lb, or higher. This will immediately affect the position, and the demand will Jail off in the retail shops. Some of the buyers have, no doubt, secured stocks ahead, and can afford to retain the lower retail price. The facte .ries who sold their SeptemberOctober cheese have unfortunately missed the advantage which they would have U'eaped by consigning. Cheese bought at 8d per lb f.o.b. would cost, landed in London, 87s. lihe market price is now 116 s to 118 s and September-October cheese will realise round these figures, which means that if the cheese had been consigned, the factory would be to the good 3d per lb. However, this is one of the peculiarities of the trade. When 8d or less was accepted, it was looked upon as a good price, and there waM a large number of buyers in the United Kingdom who would) not look at a proposal to buy at 8d per lb, reckoning at that time that the future of the mafrket did not warrant it. Results have proved otherwise, and the consigning factories will', therefore, be better served at any ratej for the early make of the season. The anticipated shortage of butter during the fall has nob been anything like so acute as was expected. " To 31st August, 1922, there was an increase of 409,583 cwt, as compared with the same period of 1921. For the month of September, 1922, the increase was 44,181 cwt on 1921. Therefore, for the nine months to the 30th September 1922, the butter imported shows an increase of 22,600 tons over the same period of 1921. It is interesting to note that to the 31st August, 1922, (eight months) the imports of butter are more than double the imports for the same eight months in 1920. In this connection the Canadian and Danish quantities have materially increased. Many purchasers of Canadian and States butters are finding much difficulty in disposing of same, and they are losing heavily. The quantities of butted now on the water from New Zealand and Australia are heavy ■and it cannot be expected that prices can be maintained. The industrial condition of the country! is desperately bad and margarine is getting heavily supported. For the year ending 31st March, 1922, the Danish - production of butter was 1031300 tons. Of this they exported 90,720 tons. :For the same period they produced 34,430 tons of cheese, and exported 12,-200 tons. The total import of butter and cheese into the United Kingdom during September 1922, was : —Butter, 219,707; 1921, 173,326. Cheese, 256,504; 19,21, ? 262,646. Since the foregoing was written, the cheese market -has jumped and is nowf 130 s. The shortage is beginning to reveal itself and piany large retail establishments are scrambling t themselves.