EFFECT ON BUTTER INDUSTRY.

Hokitika Guardian, 30 September 1925, Page 4

EFFECT ON BUTTER INDUSTRY.

V, I'.i.i.lNi' I i IX. •-opt. 2S. 'ill,' elicit of tile shipping strike oil tile butler industry in Xcw Zealand has I,cell ill,' subject "1 cull.-idi'rabh' speculation, in view of its importance t,i the Dominion. Special intention has been drawn to llie mutter by a reported rise of prices in London and l,v a ri -e < I Id per pound in the local i mile. In \ ii",\ of these facts, a “Xcw Zealand Tunes" repnr tor mad.' some in- • 111irii's amongst shippers ol New Zealand prod and the < uiverniui'iu. Department dealing with overseas shipment. Amongst these the general opinion v-as expressed that tor the present at anv rate, liter,' was no occasion for riilli'i'i'N, The total stocks held ill Wellington. at the present linn', is approximately lo.ddt) boxes, by no means a large quantity, as over -Ill.dtiO boxes hiivi: lie,rn held in stock, cv.-ii under normal conditions.

The opinion was expressed, that, unless the strike lasted more than a couple of moiltlts. storage will lie available as refrigerating space mi the various local freezing works .should he drawn on. As the killing season begins in December, however, stocks would have to he removed by that time. Asked as to the effect of the holdup on local prii os, the opinion was expressed that a fairly sharp rise in London might l-e expected. At present the price is firm at 222 s per cwl. and. as the New Zealand market price is based on London parity, this explains the local rise. It was explained that the two grades coining on to ihc Wellington market averaged at present 212 s per pv.t. which was still Rk below London rates, and a decline locally, rather than a rise may he looked for as the season progresses.

The effect of the hold-up on the London market, it. was stated, would ho to harden prices at 'Nome for availaide supplies, and probablv force the consumption an increased amount of margarine, as ihe whole of the available supplies of butter could be consumed in Croat Britain. It was. however, not likely that the market lor colonial butters would he more titan temporarily affected. .Some slight dishv at inn of prices might occur when the strike ended, as, unless care was exercised, the whole,,: the accumulated, stocks from Australia and New Zealand would lie landed in Britain at the same time causing a flooded market.