The Guardian And Evening Star, with which is incorporated the West Coast Times. THURSDAY, SEPTEMBER 9, 1926. PRODUCE PRICES.

Hokitika Guardian, 9 September 1926, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. THURSDAY, SEPTEMBER 9, 1926. PRODUCE PRICES.

The sharp decline in butter prices is naturally a matter for concern, the drop being so material as to affect very seriously the- finance ol the Dominion as a whole. There is not at present any adequate explanation tor the cans* of the fall. Though it is surmised there is some connection between the drop and the institution of control methods which operated from Ist. Sept. However, there is at Home a considerable hoard of New Zealand butter sent overseas in advance oi control direction, and the great supply said to approximate a million boxes, is affected by the slump. It is rather extraordinary seeing what is involved that there is not some explanation more or less official of the situation. This is the time of the year when prices are advancing rather than falling, and a time of the year when the New Zealand commodity is commanding the best price of the year. Just why there is so notable a decline should in the circumstances he capable of some explanation as to cause, and perhaps also as to duration. New Zealand is a large supplier to the markets of the United Kingdom. For the last two years in particular New Zealand has been the second largest .supplier, both in,quantity and value. In 1924 the principal suppliers were Denmark, New Zealand, Australia, Argentina, Irish Free State, Russia, Finland, Canada. All these countries supplied butter running into millions in value, as follows: Denmark. £18.118,126; New Zealand £9,9,56,812; Australia, £5,648,639; Argentina, £4,432,262; Irish Free State, £4.111,403; Russia. £2.338,450; Finland £1,299,898; Canada, £1,269.186. In the following year (1925) the order in values was the same, though the totals had more material difference, namely: Denmark, £17,110,534; Ne" Zealand. £10,789.915; Australia (a substantial increase) £9,484.977; Argentina. £4.030,324; Irish Free State, £3.696.144; Russia, £2.448,095; Finland, £1,611,065; Canada £1,524.024. The aggregate imports to the United Kingdom for 1924 were just under fifty million pounds sterling, and for 1925 almost fifty-three and a quarter million pounds sterling. It will he gathered from these figures that the consumption is enormous, and that a remarkable trade is available on such a market. Practically the value of butter imported into the United Kingdom is a million sterling per week. On such a market there is not room for a serious or prolonged slump providing the market is good. In the comparative figures given above the only trade rival to show a marked increase in supplies .sent forward fpr 1924 and 1925. was Aus-

tralia, which made a big jump, -upwards of four millions in sterling value. New Zealand in the same period increased ovor a million, while three of the other countries. Denmark Argentina and Irish Free States, showed comparative declines. It was clear the New Zealand commodity was holding its own. Seeing that this country has made great strides in the dairying industry it has been held that the Dominion is in a most favoured position from the point of view of future development-. The industry should therefore gain ground rather Ilian lose it. Taking this view of the situation the outlook can hardly presage a . prolonged decline in values. The commodity should lie us good a quality as over, and should command as satisfactory a price ns any similar article on the overseas market. It is conceivable that the great, dislocation oL trade at Home by reason of the coal strike has disorganised business. There has been , a great decline in wages earned necessarily. and less money is in circulation. Many million tons of coal are being imported from elsewhere, and the money is going out of the country—there is less money in local circulation. This will affect trade, and as this state of things has been going on for four months and a half, the loss in trade must now ho appalling. The conditions so created must affect the butter market as other commodities, and until matters are normal again, the situation is fought with incalculable difficulty. Meantime butter producers in Now Zealand will be hit. and it will mean rather a lean season this year on the present outlook, but it to- be hoped it is only a passing phase, and that with matters normal in the United Kingdom, the difficulties will soon pass away.