WELLINGTON NEWS

Hokitika Guardian, 15 April 1926, Page 4

WELLINGTON NEWS

THE 15UTTER MARKET

(Commercial Correspondent.)

WELLINGTON. April 12,

Tt has been noticeable for some time past Unit the margin between tbe prices of Danish and New Zealand butter is very aide, wider than it was in pre-war days. Then a margin of 10s per eat was considered not unroasonihie in view of the fact that Danish nittcr reached the market in a fresher condition than Xcm- Zealand, which had to he transported thousands ol miles before it reached the consumer. Now the margin ranges lie tween 17s and 225. and earlier in the year the difference was ns much as .‘sos in favour of Danish hotter. The explanation for this disparity is given by the Anglo-Continental Produce Coy. Ltd. in a produce circular dated February 21th. This company states that, about -ix weeks previously the Danes reduced their price to below that ol the] New Zealand product, liy doing so they obtained the market, gave Rritis’li: consumers Ircsh butter daily, and Dan-j is], butter was piloted at a premium of, :!os. This indicated lliat a larger per-! lion of the liritish consumers prefer-' red to have fresh, butter irrespective of j price, and flic company points out that. ; in pre-war days. when ( oloinal butter n'j. Mild as it arrived, there was never: anything like ilint margin in the prices of Danish. Now Zeahrml and Australian but with siieb a surplus going into cold storage every week, consumers «-ci\> getting " Hal “ goods of which thev weiv becoming tired. Another matter that i lie company emp basics is l.bal whet tier it is owing to the control in Australia and New Zealand or not. the grading of butter by factories this year lias not been nearly so particular as lliat of lasi voar, and the standard of New Zealand and Australian butter has declined. This latter statement Is one that requires to be investigated, for whatever else happens, the quality of the New Zealand product should he maintained ai the highest level. Writing on (be subject of storing liiilter. Messrs Dulgety and Coy. in the Produce Circular, daied February 25th stale: "A good deal of butler has been taken off the market and is held in cold store under instructions from

shippers, in addition to which the quantities being held back in Australia and New Zealand by order of the Control Hoards, are known to buyers. When large quantities are held under limits in cold storage it temporarily strengt liens tbe market, tmi it lias also the effect of making buyers very cautious in their operations.” IS CONTROL ORF.R ATT NO ? Some merchants engaged in the dairy produce business maintain that (ontrol is being put into operation now and they point to ulie fact that on .March 31st, there was in cold store 11.120 tons of butter and 13,(535 tons of cheese of the value of over .125.000,000. The producer was thus being compelled to pay tbe cost, of storage, interest and insurance, even if all or any pari of tbe produce Inis been sold f.0.b.. for in siieb an event the buyer is not liable until the goods are placed aboard. In the ease of cheese t here was.the furtTior loss of shrinkage of weight. The usual allowance for shrinkage was 2.5 per lent per ewt but that loss was based on tbe possible loss of weight on the goods during the period of it.- passing from the presses to the .-tore. The London Importers’ Association ha- taken up the matter, and the member- of tin' London Agency have been interviewed, and tbe suggestion unmade that all New Zealand butler and cheese held back for shipment in the Dominion owing to the Hoard’s sbi|spiug policy should be ro-ucigliril and re-graded by the Covernmeni within It days of sliipmen*. The As-0,-j ;t | ion made ii perfectly clear to Iho London representatives of lbo Hoard that iho loss on eliee-o bv shrinkage through •this l:o!d-baek wa> certain to lar oxfeed the customary 2J nor cent alien ame. and ibis loss v.ouhl bo heavy on purchasers who. h< < raise of the Hoard’s policy of holding back shipments, are. unable to obtain delivery of their purchases. More we see lliat the Hoard has started off by creating a naeket of trouble and causing no end of irritation. Regulating shipments is not what is at the hack of this, hut a hope of forcing up prices in London. The lactones are being forced to speculate in lheir own produce, and they must accept the risks of that. Speculators do not always come out on the right

side of tin* ledger. Tooley Street knows full well how to care for itself, hut do tbe dairy farmers know ns