BUTTER-FAT ADVANCES

Sun (Auckland), Volume I, Issue 249, 11 January 1928, Page 10

BUTTER-FAT ADVANCES

N.Z. DAIRY CO. TO PAY V\ LOWER PRICES EXPECTED (From Our Own Correspondent) HAMILTON, Tuesday. An advance at the rate of Is Id a lb for superfine butter-fat for butter, and Is 4d a lb butter-fat for cheese has been decided upon by the directors of the New Zealand (Jo-op. Dairy Company, Ltd., for the January payout. This represents a reduction of Id a lb on last month’s advance. Interviewed, Mr. H. H. Sterling, general manager of the company, stated that the directors had arrived at the above decision after a very careful consideration of the position. A cabled forecast regarding the forward position had been obtained from Mr. J. B. Wright, which indicated lower prices in London during the next three months, if existing conditions remained unaltered. Reports to hand from London made it apparent that several prominent produce firms, anticipating a firm market until Christmas, had recently made heavv losses as the result of speculation in New Zealand butter, and it is possible that this may have had some bearing on the position. The latest cables give the London butter stocks in public cold stores at 6,500 tons, and the stock of New Zealand butter at 2,044 tons. The present weekly consumption, said Mr. Sterling. might safely be computed at 6.000 tons a week. The total stock, therefore. represented approximately one week’s supply, and notwithstanding heavy forward arrivals, it seemed obvious that a little co-operation between the selling interests in London would result in substantially better returns to New Zealand. In the present circumstances no one concerned was prepared to take the risk and to hold produce off the market while competitors obtained the benefit of such action. The restilt was that stocks of New Zealand produce in London were very small and were being kept closely sold up. I'ndoubtedly this fact accounted in a large measure for the dispa ritv which at present existed between New Zealand and Danish prices. Having regard to the present unsatisfactory prices, and the prospect for the future, as indicated by Mr. Wright’s report. the directors think it would not be prudent to make any higher payout than is indicated above.