FALL IN BUTTER PRICES.

Taranaki Daily News, 11 May 1921, Page 5

FALL IN BUTTER PRICES.

EFFECT IN DOMINION. PROBABLE BENEFIT. The cablegram from London to the effect that the British Government had reduced its selling price of butter by 70s per cwt was received with considerable interest in New Zealand circles. As the message is important it is worth re-stating:— ‘•The Government has reduced its selling price of butter by 70s per cwt, making New Zealand 1925, Australian IStis, Argentine 168 s. "Despite this most sensational reduction of price in the history of the trade, New Zealand and Australian are still neglected, as the Danes have lowered their price to 190 s, consumers preferring the fresh-made Danish to the older Colonial butters. “The reduction in the prices of.butter by the Imperial Government as above referred to amounts to 7%d per- pound. The wholesale price per pound is as follows:—New Zealand, slightly less than Is B£d per pound; Australian, Is 8d; Argentine, Is Gd; Danish, slightly over Is Bid. The coal miners’ strike is probably seriously affecting the butter market, especially the price for Danish, which is largely consumed in the Midland and northern industrial areas Qf England. The Imperial Government is necessarily losing heavily on its purchases of butter, as it paid for New Zealand the equivalent of 2s Gd per pound in the Dominion, to which price freight, insurance, and handling charges would have to be added.” BRITISH GOVERNMENT REDUCING STORES. A leading authority who was interviewed in Wellington told a Times representative that the reduction in the retail price on the English market did not by any means indicate that the New Zealand producer was to be adversely afftected. “The cable,” he says, “simply means that the British Government is too much loaded with butter and has decided to clear some of its stock. The decision does not affect our producers at the present time. They have sold their output and get their 2s Gd, so the British Government alone will be affected ao far as the matter goes now.” 1 For the next several months, he added, the New Zealand producers would have all they could do to supply the local market. ANOTHER ASPECT. Another aspect was that as the reduction in price would encourage the purchase of butter, it would thus benefit the New Zealand producers, inasmuch as the stores would be more quickly cleared if the sale increased, and the sooner the stores are cleared out the sooner there will be a fresh field for our coming season’s output. In addition to the crowded stores a circumstance which had contributed to the decision to reduce the price of butter at Home was the weakening in the purhasing power pt the people, this because of the industrial trouble. MUST REDUCE STOCKS. “We just take it,” he concluded, “as aif indication of the Government’s decision to reduce stocks. You must remember that here, at Home, on the water, and in Australia, the British Government has 50,000 boxes of butter.”

As to cheese, he said the market was still keeping firm; the people must have their bread and cheese, whatever happened. LONDON BUTTER PRICES. A FURTHER DECLINE. Messrs. A. H. Turnbull and Co. have received the following cablegram from Messrs. W. Weddel and Co., Ltd., London, under date May 6: — “Further decline butter. Danish quoted 190 s to 100 s; New Zealand, 19Gs to 198 s, extremely slow.” Messrs. Dalgety and Company, Ltd., report having received the following cablegram from their London house, under date May 6: — “Butter: Market very weak and irregular. Danish, 1955. Government has reduced price for their stock. New Zealand, Australian, 186 s; third grade 1765. Substantial further reduction in price will probably have to be made before stock finally cleared. There are still large quantities of Government butter remaining in buyers’ hands unsold.

“Cheese: Temporary shortage continues. Present quotation for New Zealand colored, 156 s to 1625; white, 138 s to 1445.” AUSTRALIAN POOL UPSET. SCHEME TO COVER LOSSES. By Telegraph.—Press Assn.—Copyright. Brisbane, May 10. The Queensland and New South Wales butter pool committee’s arrangements have been upset owing to the collapse, of the London market. These arrangements were made on the understanding that advances from London were to be on the basis of 168 s for first grade, 164 s for second, and 160 for third, and a levy was made of 3d per pound to meet the reclamation pool. The committee is now advised that, including the levy, only 130 s is available for first grade, and 112 s for second and third. It has, therefore, been decided to obtain financial assistance to cover the , difference between 168 s and 130 s, and to . continue the levy until sufficient is accumulated to cover losses. J