THE DAIRY MARKET

Sun (Auckland), Volume 1, Issue 107, 27 July 1927, Page 12

THE DAIRY MARKET

PROSPECTS GOOD PRESENT CONSUMPTION HEAVY NEW MARKETING PROPOSALS (From Our Own Correspondent.J HAMILTON, To-day. THAT the weak position of the butter market in London was due to temporary overproduction in Denmark and other European pressed in a' circular issued to shareholders by the managingdirector of the New Zealand Cooperative Dairy Company, Mr. W. Goodfeliow. Canada was expected to commence buying before long, however, and the stocks on hand were considerably less than last year. The present weekly consumption in the United Kingdom was abnormally heavy, and for this reason Mr. Goodfellow considered that prices should be be higher, in spite of heavy importations. He added that he was forced to the conclusion that the depressing influence of the pool was still being felt. For several vears New Zealand butter had been largely withheld from sale during the months of May, June and July. and released during August, September and October. This season, however. New Zealand butter was being sold as it arrived in competition with the produce of the Northern Hemisphere—with obvious results. THE OUTLOOK The forward market outlook for cheese had improved somewhat recently, and London buyers were reported to have offered as high as Bid f.0.b., for August, September and October make. The marked improvement industrially in England warranted the prediction that cheese would give a better return to the producers during the coming season. The casein market remained firm and sales were being made at very satisfactory prices. On the whole the outlook for the coming season was better than it had been for several years. Milk powder sales were steady, continued Mr. Goodfellow, and had been assisted by the recent sale of considerable parcels of Australian consumption. GROUP MARKETING The directors of the New Zealand Co-operative Dairy Company had recently entered into an agreement for the formation of a company to be known as the “Amalgamated Dairies, Limited,” an organisation which was to be established for the control and sale of all the company’s exportable dairy products, plus that of other cooperative companies. This organisation would endeavour to establish what was known as “group marketing,” and although it was probably too late this season to secure the support of many other co-operative companies, there was good reason to anticipate that in future a large number would link up with Amalgamated Dairies, Limited. Absolute control had failed, concluded Mr. Goodfeliow, and Amalgamated Dairies, Limited, had been formed to do by voluntary means the work that should have been accomplished by the Dairy Produce Control Board.