SHARP ADVANCE

Rotorua Morning Post, Volume 2, Issue 531, 15 May 1933, Page 5

SHARP ADVANCE

"Post") '

> INCREASE OF 5/- PER CWT. NOTED ON LONDON MARKET HIGHER PRICES LIKELY

(Snecial to

Auckland, Sunday. A sharp rise, with still higher prices expected for dairy produfce, is featured on the London mar- ' ket for New Zealand goods. Both ^ butter and cheese markets are active and firm aiid higher prices are expected. Mr. H. Withers has received the jfollowmg cable from his London \ principals : — Butter: Fifst-grade, 78s; finest, •80s. Cheese: White, 49s; coloured, 54s. Both markets are active and firm and higher prices are expected. TKis has had an immediate effect 1 upon the advances for dairy produce ■:sold on consignment, which have. to/day been increased (as from May il5). to 7d per pound for butter and .3Sd per pound for cheese. Higher Prices Offering A significant f eatnre is the f act /that on Friday morning overseas buy- , ers in the Rotorua and Waikato districts were offering for the July and /August outputs of factories 9d per pound. As from Saturday morning word has been received that these prices have been raised by three ' farthings per pound and that there 'was'every likelihood of a further increase if the British market held. Reasons For Rise A prominent man in the dairy in- • dustry inf ormed a "Morning Post" representative that he had received conlmuhications from Britain in connection with the possible restrictions , upon the importation of foreign dairy produce into Britain announced hy Major Elliot, the Minister of Agriculture, stating that the Tooley Street merchants were considerably increasing their offers for New Zealand and ' Austi'alian dairy produce, and that / as far "as he could see, the expecta'tion of higher prices would be fully 'justified. He also stated that he had been informed that the various dairy , companies who had previously sold 'their output straightout were getting into communication with each other ' and conf erring on the position. "•Of course it is hard," he said, '"when a firm offers the directors a straightout figure for their produce which is So much in advance of what they had anticipated, to refuse to negotiate, but as a matter of policy I understand that some companies are waiting to see which way the cat will jump. I myself think that prices will 'be considerably higher than we were first led to expect and it may be that this will prove the turning of the , tide as far as the New Zealand dairy jfarmer is concerned." Steady Increase Noted It is 'interesting to note that as a ' matter of fact there has been a steady rise in the price of dairy produce for the past few weelts. During the last week in April, butter was standing at 70s per cwt., and there | was a rise of 2s 6d per cwt on May 1. By May 5 the price had risen to ; 75s and by May 12 to 80s, a ten shill)ing rise in the fortnight.