DANISH BUTTER.

Hauraki Plains Gazette, Volume XXXVI, Issue 4828, 1 April 1925, Page 2

DANISH BUTTER.

WHY PRICES ARE HIGH. GOVERNED BY SUPPLY CONTROL. Mr A. J. Sinclair was asked at the meeting of suppliers to the Te Arolia West factory on Thursday why it was that the prices for New Zealand butter were so far behind those obtained for Danish. In his reply Mr Sinclair said he had just received a letter from Mr J. B. Wright explaining the position. The Danes were in an extremely strong position, as their weekly supply of butter was covered by contract. When Germany bought over 500 tons little more than sufficient for contracts was left, and on the price obtainable for the free butter the price for contract sales was fixed. If a large portion pt butten was. sold, to Germany less remained for the United Kingdom. Mr Wright’s letterread ■

“The Danes are in an extraordinarily strong position at the present time, as the major portion of their weekly supply of butter is covered bycontracts ; not only do the Maypole and the Wholesale Co-operative work on this basis to the extent of about one-third of the production, but other dealers in the North and Midlands and East Coast work, more or less on the same principle!, but for smaller quantities, which means that when Germany buys about ‘5OO tons Of Danish in the week it only leaves a quantity about sufficient to cover the English contracts. The, price for these contracts is fixed on the basis of the average weekly price, which is made up every Thursday, and that weekly price is determined by the average return on the butter sold free of contract."

Asked Why Australian butter beat New Zealand, Mr Sinclair said that he had a cable from Mr Wright showing that there had been a determined effort to “bear” the market for New Zealand butter, and while one agent had heen selling New Zealand butter at 170 s Mr Wright had been able to obtain a price well above that figure for Anchor brand.—Te Aroha News.