THE CHEESE MARKET.

Taranaki Daily News, 16 September 1916, Page 7

THE CHEESE MARKET.

A STATE OP UNCERTAINTY. (From Our Own Correspondent.)' „. , Wellington, Sept. 14. i-ne cheese market lias been left in an uncertain condition 'by the delay iu the announcement of the intentions of the imperial Government regarding the requisitioning of supplies or the°fi'xin" of prices A cablegram published some days ago stated that the British authorities intended to check the rising price of cheese, by fixing a maximum price or by requisitioning supplies for a.my purposes. It was stated then that trading was at a standstill on the Loudon cheese market, and the news tended to stay the operations of merchants and omenta in this country. No further information on the point was received locally up till yesterday afternoon. '

Wellington merchants presume that the Imperial authorities are considering proposals in the direction already indicated, but in the absence of definite information the position of the cheese market is peculiar. Some offers made to dairy companies prior to the report from London have been withdrawn 'by export buyers, but most of the factories .had already arranged for the "sale of fheir season's output and the arrangements are standing in the meantime. Cheese is now reaching the stores, though the busy part of the season is still to come, and it is annoying for everybody concerned not to knpw what the market conditions are going to be; If the maximum price in London should 'be fixed at a rate less than the price arranged in New Zealand, plus freight, insurance, etc., some of the contracts already made i probably would aot stand.

Agents have contracted for the season's output of certain factories at 9%d per pound, and 'London buyers, were authorising the payment of this rate immediately before the announcement that the Imperial Government intended to take action in the matter. The exporter who has paid 9%d f.o.b. jji Wellington requires to sell his cheese at not less' than 1023 per cwt. in London in order to allow himself a small margin of profit aa commission. The price quoted in the last market report was 103s to 105s. Some agents who bought early in the season'are getting cheese! from the factories at lower prices, but few of them are paying less than fld per I pound.

It is pointed out that the Imperial authorities, if they fix a maximum price, may deal either with the wholesale market or the retail market, or with both!. The fixing of a 'wholesale price materially lower than the ruling rates would afl'ect the New Zealand exporters directly, but a maximum retail price would leave opportunity for some adjustment by the traders in the United Kingdom. The margin betw.oen the ruling wholesale price and the retail price appearß to he very large at tlTc present time in London and other centres. j