DAIRY PRODUCE MARKET.

Taranaki Daily News, 12 September 1921, Page 5

DAIRY PRODUCE MARKET.

.EFFECT OF THE REDUCTION. CLEARANCE OF OLD STOCKS. The reported reduction in the price of butter, by the Imperial authorities was referred to by Mr. Hugh C. Aickin, of Auckland, who said that this would not be unwelcome news to dairy companies in New Zealand.

High prices had checked consumption, and there were indications that a fair quantity of old stock would be on the market to compete with New Zealand new season’s butter when it reached London in. November and December.

A reduction of 20s a cwt. would, he said, stimulate the demand for butter, and it was practically certain that some of the early shipments of this season’s butter would reach a bare market, and would realise high valrfes. With a fuP knowledge of the effect of high prices in restricting sales, British butter buyers had made purchases at 2s Id f.o.b. for October shipments, which was evidence that high values were expected for butter shipped this year. It was not anticipated that the present fall in price in London would affect local values, as no shipment had yet been made of new season’s butter, which was now in general use on the local market. Any change in values after the new season’s butter reached London would be immediately reflected in local prices. It was natural that the Imperial authorities would use every endeavor to clear their stocks of old butter before new season’s Colonial butter became available in quantities, as it would be hopeless for the State butter to compete with the fresh make from the Dominions. It was probable that the Imperial authorities would still further reduce prices if their present reduction did not sufficiently increase sales so as to effect an early clearance ,