BUTTERFAT PAYMENTS.

Hokitika Guardian, 17 January 1928, Page 4

BUTTERFAT PAYMENTS.

REDUCED ADVANCES MARKET ITNPRCAUSING. A further reduction in indicated in e the payments to be made for buttorj fat to suppliers of the New Zealand Co-operative Dairy Co. At a meeting ( last week the directors decided that l the monthly advance payable on Jan. j 2Qth. would he Is Id per lb. for super- , fine, hutterfat. for butter and Is -Id ~ per lh. for cheese. I Air H. H. Sterling, general manager I \ qf the company, stated that a cabled ! forecast regarding the forward posi- i tion had been obtained from Air .T. B. I At right, which indicated lower prices I in London during tho next three I months if existing conditions remained ; unaltered. Reports to hand from Lon-I don made it apparent that several prominent produce firms, anticipating a firm market until Christmas, had re- ; eontlv made heavy losses as the result | of speculation in New Zealand butter 1 and it was possible that this might j have had some hearing on the posi- 1 tion. The latest cablegrams gflve the ‘ Tiondon butter stocks in public cold stores at 6500 tons and the stock of i * New Zealand butter at 2014 tons. | ‘

The presnt weekly consumption, said ATr Sterling, might safely he computed at 6000 tons a week. The total stock, therefore, represented approximately one week’s supply, and notwithstanding heavy forward arrivals it seemed obvious that a little co-operation Iretween the selling interests in London would result in substantially better returns to New Zealand. In the pro- : sent circumstances no one concerned was prepared to take the risk and to hold produce off the market while competitors obtained the benefit of such action, continued Air. Sterling. Tire result was that stocks of New Zealand produce in London were very small and were being kept closely sold up. i Undoubtedly this fact accounted in a large measure for the disparity which at present existed between New Zealand and the Danish prices. _________. I