BUTTER AND CHEESE

Sun (Auckland), Volume I, Issue 200, 12 November 1927, Page 12

BUTTER AND CHEESE

MARKETS REVIEWED OPPOSITION TO CONTROL A quiet week has been passed in butter and cheese circles on the London market and, though a better tone is reported, sales are still slow. It would seem, however, that the butter market should remain in its present position, fluctuating between 170 s to 1765.. for some weeks yet as consumption is expected to be maintained, or even improved up till the end of the year. Though not featured in the cables the market has been at a fairly low ebb over the past fortnight, touching 164 s at its worst. As previously stated, however, there is nothing to indicate that the present improved tone should not be maintained. or even improved upon, till the end of the year. UNCONFIRMED REPORT

A report has been circulated within the last day or so that London importers have decided to reduce advances from Is 4d to Is 3d on butter and from B£d to Sd on cheese. As yet nothing- official has come out from the New Zealand Exporters’ Association which association would have been the first in New Zealand to hear of any actual decision of the London Importers’ Association on such an important question. The recent low state of the market was certainly sufficient to justify a reduction, but importers may have sufficient faith in near future prospects to maintain the present rate for some time to come. The fact that a private “war” is on between some of the smaller dairy companies and the Control Board over the board’s demands for a close inspection of the exporters’ books and information as to f.o.b. sales, etc., has been given publicity during thd week by the refusal of three of the smaller companies to comply with the board’s demands prior to shipping. The consequence has been that the board has prevented the butter being exported. What will be the outcome is hard to forecast as there is a possibility of other interests joining in the “war.” The dissatisfied ones’ strongest grounds ket quiet, firm tone; Danish, 198 s f.o.b. on October 19, the fact that several big men in the butter world are on the board and, to accede to the demands, would mean, to the majority of the smaller companies, placing their private business activities into the hands of already substantial competitors. MANUFACTURE OF MARGARINE Of interest to butter producers is the information to hand per mail over the week of the formation of an international combine to manufacture margarine. The syndicate has acquired a controlling interest in Jurgen’s and Van den Bergh’s undertakings in all countries and will control practically the whole of the margarine trade of Europe. The capital involved amounts to many millions, the two British companies concerned having an issued capital of £8,575,000. Under date November 10 the London office of the Amalgamated Dairies cabled as follows: Butter: Freshly landed, 172 s to 1745: cold stored, 168 s to 170 s; market quiet, fir mtone; Danish, 198 s f.o.b. Cheese: 98s to 100 s; market dull with downward tendency; Canadian, 96s to 98s c.i.f.