BUTTER AND CHEESE,

Taranaki Daily News, 15 August 1921, Page 8

BUTTER AND CHEESE,

PROSPECTS FOR THE SEASON* DISTINCTLY BRIGHT. NO NEED FOR PESSIMISM. Messrs. Joseph Nathan and Co. (Wei-, lington), write as follows: As our Mr. M. J. Nathan, one of the managing directors of our company in London, is out here on a visit, and has been intimately connected with the dairy produce trade for the last thirty years, he notices a- very pessimistic article in the local papers this morning in regard to butter and cheese. We are most desirous to remove any undue pessimism. The right way to view this position is that sometimes the “bulls” are at work and sometime* the “bears” are at work in the market, just according to how the general trading conditions are working. It must be remembered that in the London dairy produce trade, New Zealand is not the only produce interested or affected. The trading there applies to all dairy produce received from other parts of the world as well as New Zealand. In the first place, Mr. M. J. Nathan has, in his addresses to most of the factories, pointed out that the butter and cheese market is largely ruled by sentiment. Consequently advantage is taken of the slightest indication by the ‘bulls” or “bears” to try and influence the market in whichever way they wish it to go. Now. there have been some, beneficial rains in England. We have had no reports that it i's general, but advantage .is taken of this point. We receive cables every day from our London office, and, though there is an easier tone, our advices show’ that the market remains fairly steady, but quiet, without any big fall such as newspaper reports would indicate, and our people at- Home still take an optimistic view about the returns that will be. received for New Zealand butter and cheese.

The recent buying of cheese, has no doubt been for special orders, and not in any way speculative, so that, when these orders are filled, houses who do occasionally speculate in cheese would no doubt' withdraw, feeling that the rates are too high. This in itself would have an easier effect upon the market, and is quite a manoeuvre, that is frequent in connection with trade of this description. . Therefore as from the point ot view of the quantity to be purchased there were not many buying orders out here even at 111-8 d to 115-8 d for cheese, and still fewer -for butter at any price, too great an importance possibly is being placed upon the withdrawal of offers. WHY BUTTER IS WANTED. Our object in sending this circular is because we see no reason why there i should be a pessimistic tone imported . into butter and cheese prospects to-day, ■ because not only does the statistical I position point to reasonable returns, but I also the prices are to-day on a range of values which do not look to be at all i dangerous. I Now, take the statistical, point for 1 butter. England imported in pre-war days anything from 220,000 to 250,000 tons of butter. Siberia used to supply between 40,000 and 50,000 tons to Great Britain, and some 20,000 tons to Germany. She is dead as far as we are concerned. Denmark used to supply I about 80.000 odd tons. Last year she only supplied about 40.000, the balance of it being sold in Germany, France, Bel-finm, and the United States. Scawdanavia used to supply about 11,000 tons; and France about 11,000 tons Neither of these countries are supplying any to Great Britain, but on the contrary France is a buyer of butter, so it appears to us that England must rely upon Australia, New Zealand, and the Argentina for her butter, which probably means about 80,000 tons. That' the public of England will eat butter, no matter what price it is, was I pro,vcd during the war time, when they paid up to 5s per lb for uncontrolled English butter, although they could buy ! margarine at that time from Is to Is X,d nor lb. Naturally if butter is 2s Gd , per lb and margarine Bd, lOd, and 1?, according to quality, the eonsumption of butter will go down. and the consump- : tier of margarine will go up, but there , is plenty of room for the consumption of butter to go down, when the above figures arc taken into consideration. If there were not margarine on the market butter would probably be worth 5s per ~J - , c < The United States are buyers of butter. Enquiries have been out here from ; that source. THE CHEESE POSITION. Dealing with cheese, even as far back as 1908, Great Britain imported about 88,000 tons of cheese from Canada, and under 14,000 tons from New Zealand. Last wear the Canadian supply was about‘43,ooo tons, and the N.Z. supply about 68,000 tons, only an increase of 20,000 tons spread over twelve years, and the. population has increased largely. We are informed that the Canadian supply for this season will be no greater than last season. Again we have reports from our London office, and from several large wholesale dealers in London, that cheese is going into consumption where it was never gone before —that is to say, amongst the higher classes. This is due to the recent coal strike, thereby causing a shortage of coal, and the recent very hot weather making a meat diet

unsuitable, besides which the heat has been too intense for people to do much cooking. The result is that these people have become used to cheese, and our information is that a. very large consumption of cheese is anticipated. We therefore see no reason to alter the opinion we have expressed many a time in meetings with factories, that there is no reason to be anything but optimistic, feeling that the factories will be satisfied with reasonable prices for their produce somewhat on a parity with what are to-day’s market values as indicated by the trade in their recent buying. THE OUTLOOK GOOD, STABILITY OF THE MARKET, Palmerston N., August 13. With reference to the statements published regarding the instability of the London butter and cheese markets, ani that consequently a fall hi prices is pending, a representative of the Standard has been informed by the secretary of several dairy companies and the agent of a large Tool?y Street distributing house that these remarks were, in their opinion, misleading and very much exaggerated. While admittedly thete is a slight easing of prices, their opinion was that the general outlook is for a good market during the coming season for both butter and cheese. Amongst other allegations made was that owing to the breaking of the drought in England a greater supply of Home-made cheese was assured, but it was obvious to experienced dairymen that the breaking of the drought had come too late to affect the production of 'English-made cheese. Moreover, one large firm which had an order to buy cheese at, 11-Id lb, was still open io negotiate at. that figure. Its principals had not cabled instructions to reduce the limit. A further instance of the stability .of the cheese market is mentioned in cable advices received to the effect that sales of cheese have been made at 136 s per cwt. in London, equal approximately to Is f.o.b. ‘Wellington. DOM TELS