HOLDING NEW ZEALAND BUTTER IN LONDON.

Shannon News, 19 May 1925, Page 4

HOLDING NEW ZEALAND BUTTER IN LONDON.

aotiok KEENIfY RESENTED. It is estimated that 10,000 tons of butter is being held in London at the present time (most of it New Zealand butter) on which a reserve selling value has been placed ranging from 170/- to 180/- per cwt. According to cable news coming through the last day or two, this action on behalf of the New Zealand dairy factories is being keenly resented by the wholesale and retail trade in Great Britain. The retail price has been advanced Id per lb. mors as a protest than out of necessity and a further advance of Id is threatened unless the reserves are taken off the butter in the London cool stores. This, of course, is done in to check consumption and so force down prices. The present action of the butter trade in England can only be looked upon as a result of the indifference and "easy going" of the New Zealand factories in the past, by taking any price that may be offering. The New Zealaifd producers are by this time fully conversant with the tactics employed on the London market, and when any "bearing" movement appears unjustified or is being carried too far they put a stop to it by withdrawing their produce.

It must be said to the credit of the New Zealand agents and representatives of Tiondon houses that they at least arc with the producers every time, lor on many occasions, when they see the tendency of the market

hey auvise their companies by wire as to tlie necessary steps to take. To show the importance of continuously watching the markets, an ins'ance was pointed Out at the meeting of the Kairanga Dairy CompanS the other day. The chairman stated that when the butter market dropped to 164/- last week the company had 2.500 boxes of butter landing and the directors decided to hold and instructed their agents not to sell below 170/-. After holding for less than 10 days, the whole parcel was sold for 170/- and 171/-r resulting in a' gain to the company of over £4OO in a little over a week. Needless to say, had the company been satisfied with 164/somebody else would, of course, have reaped the benefit. i It may be just as well for the Dairy Control Board, to note the present attitude of the wholesale and retail trade in Great Britain. According to its chairman, the Board contemplates holding large stocks of butter and cheese in London cool stores, -in order to "feed the market." This means that, when prices drop below a level that, in the judgment of the London members of the Control Board, is not warranted or justified, New Zealand butter and cheese will either be withdrawn entirely or ladled out in minute quantities. The effect on thft trade and the consumers can be wel. understood from the present happenings. When there is such indignation at the action of individual factories, what will be the result of the concerted action of the Board.