Dairy Produce.

Te Aroha News, Volume XXVII, Issue 43326, 16 May 1908, Page 3

Dairy Produce.

The following interesting particulars jjt received from Dalgety and Company, “Ltd., London, 1 regarding the abnormally high prices of dairy produce, and the effect it is likely to have on the future market values, should be of interest to all concerned : The. abnormally high levels to which the prices of butter had advanced at the time of. our last « circular, which was dated the 13th, February, was written, were almost immediately followed by quite as unexpected and sudden a collapse in values. Finest Australian which occasionally realised 152 s and New Zealand which brought up to 154 s per cwt. during the boom, sold at 116 s and ÜBs respectively within a few days after This severe decline was stagnation in trade, consequent upon the public refusing to buy at the prices retailers were compelled to ask, and by "their using margarine instead of butter. For several days after the reaction very little butter was sold in Tooley Street and those who had previously bought at the top ot the market found that to quit their stocks they would have to accept much below cost. iiiese conditions obtained for about a week, when, owing to the much lower rates to which shopkeepers bad meanwhile reduced their selling prices, the consumption improved considerably, and values not only showed a firming , tendency but gradually advanced until 122 s was again reached for finest Australasian, the demand being rather stronger for unsalted than salted. During this •/ P®nod the enquiry for Danish was, however, not good, and as stocks thereof commenced to accumulate, the Copenhagen Committee decided this morning to reduce their official quotations by 5 Kroner (about 5s 9d) per cwt., thus bringing the prices of that description on about a level with ' curr _ en t rates for Australian, which 1*- are in consequence expected to decline about 4s per cwt. As some retailers have again reduced their selling rate to a popular rate, viz., la Id per lb., a good demand is expected, but the trend of wholesale values is difficult to forecast as so much depends upon the future policy of shopkeepers and the weather conditions during the near future in the early Continental producing districts. The sale of margarine in the United Kingdom has increased enormously during the past few weeks owing to its cheapness compared with butter, and margarine factories are working almost continually to cope with the extraordinary demand for their goods. - • Since our last, 125,003 boxes of butter iiave. been imported from Australia, and 80,184 boxes from New' Zealand, as compared with 219,036 i boxes from 'Australia and 93,046' from New Zealand for the Corresponding period last year. A total decrease of « 106,895 from Australasia.