The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, JUNE 13, 1930. DULL BUTTER MARKET.

Hokitika Guardian, 13 June 1930, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, JUNE 13, 1930. DULL BUTTER MARKET.

Ihk dullness of the butter market at Home causes considerable concern. Ihere are various opinions as to the cause for the low prices prevailing. One of the readiest answers is the phenomenal increase in the world supply of butter, and another is that there is less money to go round, and that consumption, desp.te the drop in prices, is less also. This is probably the first occasion on which the market lias remained depressed for so long a period. In former times the speculative propensities of those on the market caused variations, certainly in the flush of the season’s supply, but the periods were short and the reaction could almost be measured for its time to uplift again. But the market is passing through a changed era altogether, and it is not possible to gauge the Home position. For the time being the speculator dabbling in butter prices is out of business, the state of the trade generally befing such as to give him no encouragement to ply iiis not unuseful business as a contribution to the volumes of trading. On the general aspect an English commercial authority asked for the reason why butter prices were so low, answered in one word: “Production.” This point, amplified with figures, showed that during January and February of this year, imports of butter into tbe United Kingdom totalled 1,106,732ewt., an increase of over BO.OOOcwt. compared with the corresnondiug period of' the previous year. The New Zealand import actually decreased in that time, but during the whole season there will, of course he

a large increase. Australian butter went up during the two months by 127.597 cwt., and the Euronoan competition was even more significant, the ilncrease /including .the following: Increase owt. Denmark 5,0(0 Finland 8.501 Soviet Russia ... 1.709 Sweden 15,325 F.sthonia 11.728 Latvia 0 871 Poland 4,810

“Jin thin world-wide increased production you have the whole story ot the butter position,” remarks tins English authority. ‘‘This factor is coupled with the general economic and financial position throughout the world. To-day one can write confidently in this strain, hut a few months ago w had no more than ordinary forebodings of what might happen. Yet the most far-seeing never dreamt of 130 s being the price of New Zealand butler. We doubt if any ever seriously

believed it would touch 150 s, but as conditions (gradually evolved it became evident that there was more blitter being shipped to England as the result of a mild open winter in Northern Europe, the maintained production in Australia and the heavy increase in New Zealand, than could lie absorbed at the current retail prices. It is not a question of inefficient marketing nor of buyers’ control. It is not a question of the speculator; mat prominent section in New Zealand who have been advocating the elimination of the speculator for so long can now have their wish 1 We do not seem to have a speculator left. You cannot have a financial crash l.ke that of Wall Street last autumn without the whole world being affected. You cannot have a Stock Exchange slump in Great Britain such as the Hatty, Hurtle, Harrison and other groups let the country in for, without business suffering fl'oiti the reduced resources of hundreds i>l'< sill it 11 tinders, and vanished income (In many cases capital too), of thousands of In••esters, which moans 'there 'is less money to go round. It is pointed out that so many commodities have been declining in price for twelve months that the retail trade, in self protection, has been forced into the policy of weekly purchases, for the simple reason that they could buy at cheaper prices each week. These who carried stocks lost money. The trade as i whole hav n never carried less reserve stock, and we do not think they ever had so much to justify them doing so. When you look round there are only about three commodities .that have held (their on—bacd'.i (pork), meat and cheese. Butter is being produced in 14 or 15 different countries, and the increase in some places is phenomenal. Can you wonder that the trade has got it in its mind that the turn of butter has now come, when you Sutidy these figures and present conditions? Hitherto a reduction to Is 6d retail in the shops has meant that there has not been enough butter to go round. The disturbing element today is that after three weeks of this low price consumption has not increased more than 4 per cent, at most, if that, which goes to show that the mtblic has not got the money, and in itself disabuses the point that the group of multiples control' the position. The fact is that there is rather more butter available than is needed by the public—but if the supply was jest a trifle short of requirements, the producer would soon conic into his own again,”