COMMERCIAL.

Hauraki Plains Gazette, Volume XXXVI, Issue 4839, 8 June 1925, Page 1

COMMERCIAL.

DAIRY I’BODUCE MARKET.

GENERAL SURVEY OF POSITION.

The following circular has been issued by Norden and Co., Ltd., in connection with the Home market r—

Butter. —During the month the butter market gradually declined from 170 s to 1645, and is reported weak at thks figure. The present price corresponds with that of the previous season for the same period. Arrivals into Great Britain for April, were 31,295 tons, as against 18,774 tons for April, 1924, which shows an increase of 12.521 tons for April this season, to which must be added tiie accumulated stocks temporarily withheld from sale from Argentine, Australia, New Zealand, etc., estimated at between 25,000 and 30,000' tons.

The New Zealand prdouction, according to the official figures of the Dairy Division, is showing an increase of 19 per cent, for this season; compared with last season. Fresh arrivals 'from various sources will not tend to relieve the statistical position, particularly as it is anticipated that the Irfeh and Home supplies will be at their flush during June and July. The recent Danish strike does not appear to have acted advantageously to the producers in the Southern Hemisphere, and the United States, which was rapidly developing as a market for New Zealand butter, is. unlikely to be of material assistance in the future owing to the reported increase in duty from 8 to 12 cents per lb. lOn present advices we do not, unless unforeseen circumstances ariise, anticipate any improvement in tiie market meanwhile, and, further, the consumptive demand is unlikely to be increased to any appreciable extent with the retail price at Is 8d per lb. at Home. Factories withholding their butter from sale in anticipation of making better prices in the near future should review the statistical position.again, for we are of the opinion that it is not possible to control or make a market for goods which are dependent on climatic conditions for production and can only be governed by the inexorable law of supply and demand. Cheese.—Prices for cheese have been steadily maintained throughout the season, but during the month of May eased from 96s .to 90s. The mar-’ ket to-day has recovered to 91s and 92s for white and coloured. Although the New Zealand production shows a decrease of 2 per cent lor the season, arrivals into Great Britain from all sources during April were 13,276 tons, as against 8738 tons for the previous April, an increase of 4538 toile. It is estimated that 30,000 tons, or approximately half of the New Zealand output, has or will arrive in Great Britain within a period of three moots, namely, April, May, and June. Prices for cheese at this period last year were 83s, when there was a decrease in supplies of 6411 tons, as compared with April, 1923. From present advices we do 'not anticipate any violent fluctuations in price until possibly we meet the make of the Canadian finish.

Exchange.—it is pleasing to note that the recent reduction in exchange signifies a saving of 1% per cent. to. the producing interests. This ■welcome reduction is the result of the return to the gold standard, which was anticipated in our circular of December 17 last as a solution towards the exchange problem.