PAYOUT TO FARMERS.

Hauraki Plains Gazette, Volume XXXV, Issue 4792, 22 December 1924, Page 1

PAYOUT TO FARMERS.

NEARLY HALF A MILLION. RECORD SEASON ANTICIPATED. "Very nearly half a minion of money will be distributed to dairy suppliers .throughout the South Auckland province on the 20th of the month, ’’ said Mr W, Goodfellow, managing director of the N.Z. Co-opera-tive Dairy Co., Ltd., on Friday. “This is perhaps the most satisfactory Christmas present they ca/n receive, and it is being contributed to by the remarkably good season that is being experienced, All past records in production seem certain to go by the board this year unless weather conditions materially change.

“The money paid out on November 20 by the company was £383,000, and tiiits month’s cheques will reach approximately £425,000. The .total amount of this payout would have been larger had it not been necessary for the directors to reluctantly reduce the advance by one penny to Is 2%.1 in sympathy with the forward position of the London market. That London 'merchants view the forward position conservatively is sufficiently demonstrated by the fact that they have arranged credits for current advances on export butter on a basis of only Is 2d pe lb.”

Dealing with local prices, Mr Goodfellow said that the present retail price of Anchor butter was now Is 7d, which yielded a wholesale price of Is 4%d and gave a net return to the factory of a fraction over Is 4d, which was therefore quite in line with the export parity. What governed the position at this time of the year was not the current price of butter in London but the forward position, i.e., the price likely to rule for the heavy New Zealand supplies being manufactured now and due to reach the London market in Feburary, March, and April. At present the United States market was carrying 26,000 tons more stored butter than at this period last year, and this large reserve had a weakening effect on London, where American supplies had been- offered at as low as 160 s when Anchor butter was selling at 208 s. Allied with that position was the fact that Australia was experiencing heavy production. The Commonwealth export figures for October were 10,959,1761 b, compared with 1.039,4961 b in the same month in 1923. Heavy supplies were now going forward from the Commonwealth and New Zealand, and arrivals from early January onwards would be heavy. For instance, in the week ending January 10 no less than 1445 tons of Australian butter and 1'555 tons of New Zealand butter were due to reach London.

‘•The prospective arrivals of butter in Loudon from New Zealand for the months of January, February, and March next, as outlined in the allotments of space drawn up oy the shipping companies, are very impressive, being as follows: January, 322,873 boxes' (258,002 boxes last season) ; February, 509,199 boxes (307,634 last season) ; March, 306,334 boxes (274,892 last season), or a total of 1,138,406 boxes as against 840,528 last season. These figures show a prospective increase of 35 per cent, over arrivals in the same month last season. The grading figures for the first four months of this season give a. Dominion total of 1,040,000 boxes produced, compared with 806,000 boxes last season —an increase in actual production of 20 per cent,, which the exceptionally good season may still further increase • t

“Foi the last three seasons,” continued Mr Goodfellow, “the British imports of butter for the three months of January, February, and March in 561 b boxes, and the New Zealand contribution to those totals, have been as follows :—

1924 2,667,802 840,528 “Producers will therefore see that unless some unexpected improvement in the statistical or general position is effected reduced prices in the future may he regarded as certain, tn this period of our heaviest supplies going forward to Britain we always receive our lowest prices, simply because no attempt is made to regulate the arrival of our produce upon the British market. The only favourable facto; s in the position are, first, that Argentine is experiencing something in the nature of a drought, and consequently her supplies may not be as heavy as they were last year; and, secondly, that Germany is now a buyer of butter. It is expected that Continental demand will continue, and in that case it is anticipated that butter manufactured in November and December this year will return approximately Is 4d per lb f.0.b., or about 2d per lb higher than was secured by the same months’ production last season. if German buying should cease, thus restricting the demand for butter, prices would inevitably tend to recede It can be seen, therefore,’ concluded Mr Goodfellow, “that while I am personally hopeful of seeing better returns rule this year than last, there is nothing in the general position to warrant the expectation of high prices ruling ahead-”

Imports N.Z. Share, 1922 2,622,400 838,966 1923 2,802,902 859,430 194 2,667,802 840,528 1925 — 1,138,406