DAIRY PRODUCE OUTLOOK

Sun (Auckland), Volume IV, Issue 938, 3 April 1930, Page 11

DAIRY PRODUCE OUTLOOK

“BEARS” OPERATING

MR. GQODFELLOW’S VIEWS From Our Own Correspondent HAMILTON, Wednesday, movement in London at present, and undoubtedly prices are far too low,” states Mr. W. G. Goodfellow, managing director of Amalgamated Dairies, Ltd., in his monthly report to suppliers of the New Zealand Co-operative Dairy Company, Ltd. Mr. Goodfellow considered that it would be some time before prices would recover to a figure that might be regarded as satisfactory from a New Zealand point of view. The period midFebruary to March 20 had witnessed a further decline in quotations of butter on the London market. On February 22 the London manager reported that after activity the market closed at 148 s. This price had warranted a reduction in the retail price to Is 6d, which it was anticipated would bring about a large increase in consumption. The improvement, however, had been negligible. The buyers had realised their strength and were only buying their immediate requirements. WITHDRAWAL OF SUPPLIES A few factories were evidently taking their butter off the market, as about 2,500 tons had been withheld. Whether this action was advisable generally was problematical, as a holdup of supplies might reach too large dimensions and possibly cause a disastrous reaction. The fact could not be overlooked that there was a very large increase in production, both in New Zealand and Australia. Further, the general world stock position was very heavy. Stocks in the United States on January 1 were over 40,000 tons and 17,000 tons heavier than last year. It seemed that an improvement was due in the cheese market, said Mr. Goodfellow. Undoubtedly the butter decline bacl affected the position, but after March 13 there had been a healthy demand.