BUTTER STILL SELLING STEADILY

Sun (Auckland), Volume 1, Issue 99, 18 July 1927, Page 2

BUTTER STILL SELLING STEADILY

PROSPECTS REVIEWED DEMAND HEALTHY With individual operators competing for business in butter and cheese circles, various parties concerned have registered the usual tendency to make niLich or light of movements at Homo according to their respective interests. The recent slump in the price of the Danish product provides a case to the point.

The bald statement as it was first published—Danish 150 s, New Zealand 158 s—certainly was sufficient to give concern had it not been for the fact that, while the one quoted the London parity, the other gave the Copenhagen f.o.b. price—the figure fixed by the Danish Marketing Committee, as a lead for the week’s sales. To bring the Danish product up to the London parity, however, 4s to 6s has to be added to cover freight and other charges.

When it is considered that it costs up to 14s a cwt. to land the New Zealand product on the London market, it can be seen that the Danish producer, even at late quotations, makes a bigger net return than the New Zealander.

Again, when it is realised that imports into England during June constituted a record, being 7,600 tons in advance of the figures for June, 1926, a certain decrease in values had to be looked for.

Various factors operating to the advantage of the seller in the Southern Hemisphere have, during the last two years or so, helped to stay the flow of the Northern summer flush and keep the market steady. This year, with the Continetal countries’ production registering an improvement, notably Germany, the surplus is finding an outlet in England. Though there is a possibility of the market receding even further, a n >sy tint is given future prospects by the fact that, with a more settled state of affairs in the industrial centres at Home, a steadier and gradually improving purchasing power is reported. This is embodied in a recent cable received by AV. AV. Bowker from ills London principals which reports good consumption and anticipates that the market will readjust itself without any great disturbance.

Under date July 16, the London office of the New Zealand Co-operative Dairy Company adds further brightness to the outlok by quoting a steady market with “Anchor” butter selling at 160 s. Cheese is quoted SSs for white and coloured.