The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, FEB. 24, 1925.

Hokitika Guardian, 24 February 1925, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, FEB. 24, 1925.

CONTROL IX DENMARK. An interesting description was given recently by a provision trade correspondent of the ‘‘.Manchester Guardian Commercial” of the manner in which the export prices of Danish butter are controlled. The circumstances which govern the distribution of Danish butter are peculiar. Out of a weekly production of about 42,000 casks in Denmark, around 16,000 casks are contracted for with the dairies, subject to the official quotation by large distributing organisations in England. About 12,000 casks go to Germany, sold subject to quotations and partly at fixed prices on the open market. The average of these fixed prices obtained by merchants .in Denmark from importers in England, determines the official quotation, which is settled by a committee of producers and.'merchants every Thursday in Copenhagen. So that'the 16,000 casks mentioned may be secured by two individual concerns, ’there exists be r tween the dairies and buyers an agreement bv which the dairies receive so many kroner per 100 kilos, over and above the official quotation which rules

at the close of each week in the Copenhagen market, which is in its turn subject to a great amount of private speculation. The correspondent states that there are several exporters who between them control the bulk of the 14,000 casks available, and they arc accused of “rigging the market” by various methods. It is arranged that a fair ijuaiitity of butter is sold during one week at a fixed price or subject to the quotation then ruling, for which part of the following week’s supply is cnmmamlered. By manipulation the next week’s market is weakened and the various dairies are paid at the lower quotation for the butter which was called for in advance the previous week at a higher rate. Another profitable method operated by speculators is the practice of holding butter over lrom one week to the next. The withdrawal of supplies gives credence to the report of a shortage, which linns up prices. Before the rebound of the market supplies are gradually relinquished at the advanced rates. 11 German purchases are higher than expected values arc again disturbed. Alter all this manipulation of supplies and prices, the organisations previously mentioned pay the premium they promised to guarantee themselves. It, is obviously immaterial to the what the retail price of Danish butter is so long as they know they can dispose of it readily. It is also in the interests of Danish dairies iliat speculation be eneourged in the open market, for they are assured that the return for at. least 16,000 casks shall bo so many kroner per 100 kilos higher than the open market price. Referring to the fact that prices are higher for Dausili than for other imported butters, the correspondent slates that the difference does not retied variations ,iu quality, it being agreed by experts in the trade that in actual but-ter-fats New Zealand qualities (New Zealand sends the bulk of colonial supplies) exceeds the Danish standard, while Canadian and Australian are equivalent, with some dairies even belter. Lower prices are paid because Danish dairies have captured it to such an extent that they are now in a position to command a premium for their produce. The public insist on Danish butter as the best butter, and in this respect the housewife pays for her ignorance, at the same time providing the speculator with facilities for profiting at her expense.