BUTTER FAT

Hokitika Guardian, 18 August 1932, Page 8

BUTTER FAT

| THE LONDON MARKET,

IMPROVED PRICES. ; CONFIDENCE RESTORED, '.. ’ , <-^s 4 *t.j ~r • I CHRISTCHURCH, .August 16. The steady appreciation/ ox! dyiry produce prices, .on, the market, .*\>'iiich has been one of the'- leading features .or .the .present unproved* outlook, is now .being reflected . in the i prices, ,pperetlf .lor butter-fat' Ay dauy companies in New Zealand, in genei’M, tim ~North .Canterbury',cdih. . pames are malting an advance, payment of is a pQdnd .for butter-fat lor . and one company has announced -a* similar rate tor August and until further notice. A message from. Palmerston North states 'that the five principal companies in Manawatu have' fixed the advance rate for July, supplies fit lid a pound—the highest payment : .since i'ast September. , The prihrafials hi the industry locally are now very much more confident of the future.

“Generaly, I believe that butter and woolMiave .the'indications and pos-i .sibilities of) helping the Dominion through more, quickly than any otter industry or primary produce ; ’ , v : Mr C. P. Aga, general manager of theTai Tapu Dairy Lompany.:'-'“it’is very, difficult '.under existing conditions to (forecast the future, but the'best ray of hope 1 can suggest'is that for July, August, and until otherwise announced ~my meat of Is a pound for butter-fat. Wo clid not announcer this pritfe wholly be- j cause ( ijhe,p,i;esiipt is a-period,.qf .^m all | supplies, but because, we believe there ;is reason to expect that this: price may obtain righpj,tlnopgh ,tjie.....jfonthooming .sea :on,” i

A SQUXI) POSITION. 'Mr Agar said shat at August',,sth tho (l total estimated stocks. of buffer, in England were 8/0, OjO boxes, compared;-; with .1,053, 00 Q. boxes at the same/ } ttme last year. The deliveries for,,the.i\;eek j Liitie.d, August 12th )yere.T34o;.;tons. pf j Jfew! gutter ftnd\ 1100 ,of ' These , figures ..showeda sound position as compared with jthe, average deliveries during 1931;

‘.-.\Vij.h„a 'apd,, witlh.. assistance,from .Ottawa,” .added Mr , .Agar., ‘ ‘all that is needed, miike thetiuture of ,qur,gutter market, squfldjs thet enlarging , .or j-enioval of tho*.. Continental, quotas. It is well known, of lf cpurse, that at present finance, ,Germ,any, and Belguim, which are.the largest consumers of Danish butter, limit thequar,tqrly importations .'Prom Denmark, and thus .divert. Danish stocks: on ,to .fiie. Xfpndbn market, .with disastrous results' .to the, ma rkeb for Colonial produce. It is v difficult to •know from this end \yliatjt,is y likeiiy to happen is inconceivable that restrictions .which double the price of a commodity within a country can continue indefinitely/’^ INCREASE IN PRODUCTION. Discn-isiiig the prospects for the coming season, Air Agar saidt that; giych reasonable weather a suosfantial increase in prodution was indicated. ; His optimism was charged by Mr S. J. Smith, general manager of “the Central Hairy' Company. ‘ “With ■ the brighter outlook for a higher ilevel of prices for butter export to the United ivingdom than has obtained during the last season, and the recent advance of Id fi pound in the price of butter, -on the local "market,” said Mr SmitliV “our butter-fat advance payment; fp? the month of July will be at the rate of Is a popnfl* jmd -.vve. can, assure, pliers that the , butter-fat , payments for the following months of the incoming season will be fixed at. the. highest possible.rafe,, taking into consideration ;frpm timq; to .time, the ruling; values for ,bot,h . export .and. local jbuftei;.’ ’ , The, same advance rate for July was paid by. other, companies ' pperating in North Canterbury. ' ,:■■■: /• ■ ■

| Earlier ( in .the year. tho.JLppdpp butfir . market touched ,/verylow levete, , during ■ the (i last, tw;Q, Jnon.tlis prices par New Zealand butter have risen firom. 955. ,a cwt,. slowly at but increasing intensity as the movement. has' gathered streagth, to the, present figure of 107 sto IjiOs.. The, 4ahu, .of approximately . 12s. a cyt, ?e----hresents over J£d a .lb butter-fat to the former on an f.Q.b.. b{isia., and . the, idyance is further' increased by,; the Exchange, premium, )vhieh,af the more advantageous as ,',the price ices higher. The market, is reported to be firm at the advance, with an upward tendency. Keeent reports from London indicated that 1 h&.t- heather in Europe was retarding production.

.According to a market report re(.•ei'vpd -by ~tl\p duqe dated, August, 12th, New'‘ Zealand ; is ' qupte4,'at 107« ; to 110*8, ,(1048, to. 10.79 : , PW® we ?ft).> salted, Aqstrtiiian ,ft lOCjs .to. io4s (9£js to 10‘2s)find -jDanish. fit ( 98s f.0.b., 114 sto 115 s spot (335, 110 s, to HM' ! In mid-July the prices were:— Nqw Zealand was 96s to 975;, Austral^, 103 s .to, 1055.; Danish,. IQSs to llOs. In the corresponding a’pek of June, New Z-aland was 96s to 975; Australian Pos to 965, and Danish 985.. to. IQO®-,, In August, 1931, tliero,. wps an .im, l provement in pi ices following a (rcj newal of German buying, but the ad- ! vance was, of short, duration, ancj prices receded about the middlo'pf tl\e month, when New Ze.-ytend was 1 bringing from 112 s to ,116 s; Australian from :110s, to 112saiu} /Dnn.islij from j 120)?. to 1245.. 1 *