WELLINGTON NEWS

Hokitika Guardian, 30 April 1928, Page 3

WELLINGTON NEWS

REVIEW OF HITTER POSITION. (Special to '' Guardian ”.) WELLINGTON, April 27. When the dairying season ol 11)27-23 opened there was every indication ol a sir'ist antin I increase in output, and it was estimated that there would be an increase in butter of 111 per cent and in cheese of 5 per cent. For the six months ended .January butter gradings showed an increase of 13.5 per cent and cheese 3.!* per cent. January was an exceptionally dry month and production was much below the original estimate. February weather developed almost into a drought in the North Island, and it was not before well into .March before there was any ol consequence. Production fell off rapidly and the hopes of a record season have vanished. In some of the other countries it was anticipated there would be a shortage in the production, notably in Australia and Argentina, and in view of this the Dairy Hoard adopted the policy of shipping from the Dominion, as promptly as possible. 'I be result ol this policy is that shipments in .May. .lime. .Inly and August will be exceedingly small. It is estimated that the arrivals of N.Z. butter and cheese in London from .March onwards "ill amount to 1 . KiII,IKK) boxes ol bin ter as compared with I,ll2.Edit boexs. in the corresponding months ol last season, a decrease of 300.0(10 'boxes, and s‘dli.O'dO crates of cheese against 710.>00 crates, a decrease of 111.011(1 crates. Apparently dairy farmers have bad returns for the bull; ol ihe season s production, and what is still to be received is comparatively small, smaller at all events than last year. ’I lie >ea>on has worked out dilloivntly in Australasia. At the outset drought conditions prevailed and it was expected tlml the output would be very small. However, copious rains tell in the dairying districts. making a great dilicreiice i" production, and although there "ill

still be a shortage compared with lasi vear it will not lie quite so pronounced ns anticipated. I lie decrease in the Argentina output is substantial and lias no doubt been a lac lor in regard to prices. I here is a movement on foot in Australia to consider the standard of the " Kangaroo " national brand being raised to 33 points, ft !' pointed out that the margin in p> i"' in the London market between Australian ami Danish and New Zealand butter is increasing, and also that the margin between the prices of first glade and choicest Australian butters is very narrow. If is contended now that the " Kangaroo" brand has tbi"“oome well established in the markets of the world, and a recognised standard lias been set up. careful consideration should be given to any proposal to alter the standard in any way. Trade opinion is that it is doubtful whether the raising of the standard by one grading pnint would have any elicit on prices as buyers in London readily ac - cept first-grade butter which they know to lie one or two points below "Kangaroo ” butter in quality. The essential difference between choicest and hrstorade butter lias nothing to do with points, and no "rule of thumb” method can be followed in awarding the " Kangaroo ” brand. Any buttei having the slightest taint cannot be classed as choicest, although in colour, texture and appearance it might merit ()(j grading. On the other .Imml a clean butter nun- be classed as choicest, even if it be slightly faulty in a technical sense. It is stated that in spite of ihe recognition of the " Kangaroo” brand overseas, it is generally admitted that the reputation of individual brands is still a factor which weighs heavily with buyers The shrinkage in the supplies from New /.calami will enable the producer. in the Northern Hemisphere to secure better prices than last season which would be an incentive lor increasing the support. \Ve must keep a careful watch oil Siberian production which is being festered with British capital. the money market. It is the opinion ill some commercial circles that the hanks will 'be unable to reduce the overdraft rate while the competition for deposits exists. o reduce the rate on overdrafts would involve a reduction in the rate lor fixed deposits for the two are in ter-related and if the dopu.it rates are reduced the banks are likely to lose depos.twl.icli are certain to How to other institutions. From all accounts where tlier is no prospect of money rates calm? in Australia where the conditions are serious. Wo.t Australia is issuing ~ „er cent loan IW C 3.000.000 m the London market and the issue m no likelv to lie fully subscribed. No Zealand will be issuing a " l’;' 1 10,1 I .-ms or I'll 000.000 or Li .000.000 next li andfull support by the p» not to be expected. U has yet to be .ecu what effect dealer money rates m the United States will toe »■» London.