DAIRY EXPORT MARKETS

Hokitika Guardian, 17 September 1930, Page 7

DAIRY EXPORT MARKETS

FUTURE- PROSPECTS

DANISH COMPETITION KEEN

The Anglo-Continental Produce 00., Ltd., of London, in a survey of the prospects for butter in the London market, states that in view of the heavy carry-over of supplies and the prospects of large quantities of New Zealand butter, there is little possibility of an advance in prices. New Zealand will not be able t-o sell as much butter to Canada as formerly, owing to the new duty, which will operate from October 1. This will divert larger quantities to the London market.

Had it not been for a severe drought in Germany, which caused that country to buy Baltic butter, prices in England in the summer would have been lower. The low price Je'vel established is the outcome of general economic conditions. Companies ajro paving small dividends or none at all, and the middle classes have little money to spend. It is expected that the number of unemployed will increase in the winter, and prospects for the latter part of the year are very discouraging. Speculators will probably lose money, as stocks now held may depreciate- in value. Danish butter has been selling at a

premium of 20s a cw£ compared with New Zealand butter. This is attributed by the Anglo-Continental Produce Company to the aggressive selling policy adopted by Denmark. Supplies of Denmark butter were cleared regularly each week irrespective of price.' This created such a wide demand for Danish butter that when' production began to decrease prices advanced. Denmark captured the market at the expense of New Zealand. The action of representatives of Australia and New Zealand in withholding butter from the market in the export season was -detrimental to sales of butter from, both countries. The action savoured too much of control, which is disliked by English traders.