DAIRY PRODUCE

Hokitika Guardian, 20 February 1932, Page 6

DAIRY PRODUCE

At the end of last week the Dairy Produce Board was advised from London that there had been heavy buying on Continental account, and that prices for New Zealand butter had improved. The report has since been confirmed by the London principals of Messrs A. H. Turnbull and Co. } Ltd., and the market is described as “excited”. The news will make pleasant reading for the Dominion producer, and the fervent hope will be that the upward trend may continue. It is not improbable that the return of severe wintry weather in Europe will have the effect of delaying production a little, and the statistical position, judging by the latest returns, is strong.

At the end of last week New Zealand butter in store in London was less than that held a year ago, and despite heavier shipments, stocks of Australian butter did not show any very great advance. Similarly with regard to cheese. Stocks of New Zealand cheese fell short of the quantity hold last year, and there was also a substantial decline in the total of Canadian cheese in store. The reduced stocks indicate that the consumption demand has been steady, and any marked activity on the part of Contintentnl buyers would have tin immediate effect on price levels.

If tln> improvement in price is held it' should tumble the dairy companies to increase their payments to suppliers. and any upward move from the level of the past month or two would he very welcome. It seems certain that when the season doses the Dominion will have created a new record m dairy production, so that, a rise in prices would he ol material benefit to the dairy farmer and tin* country. It would increase the value of our exports and thus Imild up a favourable trade balance, providing funds in London to finance the commitments of the State and the requirement of the import trade.