THE RISE IN BUTTER.

Hokitika Guardian, 6 October 1924, Page 3

THE RISE IN BUTTER.

Is the current value of butter in tin* London market at a dangerous level-' (asks the Wellington "Post”). The question obtrudes itself; lor the retail price, it is believed.'must be perilously near the point where consumption is cheeked, and Hint point is when the price exceeds 2.x per I retail. Taking the “iiuest" New Zealand and Danish averaged prices lor the week ended Kentemhcr 27th. e-umared with top prb;?s i >i l i 11 :t two weeks I'cfnrc. il ,11 I,- 1, ,mi1l 110,1 th" upw.ird move incut has been as Inllowx; 13th. '-’nth. 27th. Sept. Sept. Sent.

cwt. cwt. cwt. Xew Zealand ... -Ills til Or. -'.‘Us Danish ■ 212 s 22 L -.ISs In the case of New Zealand there was a “jump" in the week ol IDs per cw t., and of Danish, of Ms nor cwt. These arc the prices, as cabled hv the High Commissioner, hut private ( .iblcd information from l.mulon gives higher (imitations. Gorman buyers have been taking Danish butter, with the result that the mice went to '-Mils in London and the higher quality New Zealand havers advanced in symnathy. Danish prutluelinii is lairly regulai at .)|;or) ) tons a week all the veal' round. Of that 8D per cent, goes to the I'nited Kingdom, anil notwithstanding what is said of German buying, the I'nited Kingd ni is still receiving at |,.. ls | 71) pm- emit, of tlm Danish make. Fresh make of Xew Zealand hut ter has yet to reach Home, and this, together with Australia's quota. should reach fullv gl)i!)) tons, to arrive before Christmas. Moreover. Australian and New Zealand production is heavv. 'I here is no Xew /••eland butter in sight so far as London is concerned, before Deco,,,her. What will be the price then S' That is the question that is g lv '"- oiitise for thought, here 10-da.v. ‘I he Post" is informed that the highest price that Home buyers are prepared to pav to-day for Xew Zealand butter for immediate shipment is 2DDs ncr cwt. covering cost, insurance, freight exchange.- and other mcidcldal to its landing in London. I hat is --Is per cwt. under the snot market price ol to-dav. , . . fs Xew Zealand butter being used for blending? Danish, it is said by those in the trade, is not used lor hat nurpose. for there is always a sale or it. cost what it will. However, tie average of the prices current in London mi Saturday for butters, o' ''*'' tin,,, Danish was slight Iv under JO Is. and if this is all Mended it. would give „ butter that would cost Is 10.1. Considering how fine margins are cut to meet, the retail market at Home, it would then he possible to incur,swale a Now Zealand butter costing 221)x ill a blended butter to retail at 2s per lb., taking into account the lower prices for lower grades of butters, fnc.dentallv. a private cablegram received today gives New’ Zealand finest at 2D_< to •>•> |s TS,'it while Danish could , numaiid fs Id per lh retail, other butter exceeding o.s sets going the margarine pciidulu7„: and the consumption of that substitute immediately rises. It is believed that American competition will make itself felt. Stimulated |,V a protective duty ol Id per pound, product ion in the States is said to have left laree surplus available lor expo. t. and with present fancy prices L-m----do„. it is f. that market, t hat sin." .es mav go. There was a tall of •» 1 pound all round m toe New bill, butler,narket last Monday Autumn, or “fall" make as it is called, was expected to he 20 per cent, higher tins year than last autumn. The rise in the price « bultei ■ unite unexpected, ft mav b« nttr.hut.,l.l., i., oreatl.v-inerei'sed tio.it in_ papulation of tourists and others, hut some of those who watch statistics - fess to be unable to otherwise account for it. and they think the once of buttor i,, perilously near the danget point.