THE RISE IN BUTTER.

Taranaki Daily News, 7 April 1922, Page 8

THE RISE IN BUTTER.

[VERY SATISFACTORY AT THIS TIME OF YEAR. FORWARD SALES MADE AT GOOD PRICES. “The rise in the price of New Zealand butter on the Home market fb 195 s per cwt., which is equal to Is 6£d per lb., f.0.b., is very satisfactory at this time of year,” said Mr. T. C. Brash, secretary of the National Dairy Association of New Zealand, Ltd., when seen by a Dominion reporter on Tuesday. Questioned as to the cause of this sudden rise, Mr. Brash said that summer was coming on in the Northern Hemisphere. “One has always to remember,” he said, “that more butter is being imported in Great Britain in the winter than in the summer, even including Irish manufacture. This is due to the fact that the big butterproducing countries are in the Southern Hemisphere, viz., Australia, New Zealand, and the Argentine. It is most unusual for a rise in price to take place at this time of year, as in pre-war days from the end of March onwards there was always a downward tendency on the London market.” Probably the best explanation for the rise in price, proceeded Mr. Brash, was the fact that the price for New Zealand butter should never have gone as low as it did. The bearing effect of Imperial Government stocks, along with other agencies, created an entirely false position. Mr. Brash stated that he had that morning received the following cablegram from Mr. Ellison, the association’s representative in London:— “Butter market mucK steadier at 192 s for New Zealand, with 202 s to 215 s for Danish. Good demand for cheese; white 955, colored 985.” The jump in the price of butter was certainly very surprising, proceeded the secretary of the National Dairy Association, as were the indications that it was expected to remain firm. NEW MARKETING METHODS NECESSARY. Mr. Brash stated that under date January 2W, Mr. Ellison had written as follows: “There has been established an alarming difference in price between Danish and New Zealand butter. The cause is to be found first of all in the hopeless methods we have of handling our produce. The Danes fix their price from week to week and get it. So long as they can keep clearing off they reduce prices. Consequently there has been a big call for butter on the Continent. France, Belgium, Holland, Germany and America have been buying to such an extent that the quantify for this market has fallen to about half the usual shipments, the result being a rapid rise in Danish prices, especially in x the North of England, where it reached 200 s. This high price eventually brought the consumers to their senses, and they began looking rounu for something cheaper. This turned the trade on to New Zealand and Australian, which has been retailed at Is 4(j. to Is 6d per lb. against Danish 2s and 2s 2d per lb. The market for colonial butter was kept down by the constant pressure of the Government to sell their stock. This depressed the free butters from New Zealand and Australia, but had had but little effect on the Danish. The consumers here as a body know nothing of the high quality of New Zealand butter. If they did they would never pay the hlgn prices for’Danish. To rectify the position we require some alteration. Let it be what you like; one firm, or 20 firms, or a pool; but, for the preservation of the New Zealand dairy farmers let it be something different' from what we have. We must advertise here, but it must be done nationally for New 7 Zealaffd interests.” UNFAIR TRADING METHODS. As evidencing the necessity for New Zealand better advertising her dairy products at Home, Mr. Brash quoted the following advertisement, which had appeared in the “Grocer at Home for some time: “We offer our customers a bargain line in Brockville Canadian colored cheese, June and July make, all in good condition and ready for cutting, at 98s per cwt., carriage paid within the 150-mile limit. These are much better value than the immature, tasteless new season’s New Zealand, which is at present being landed, and which will lose weight rapidly when cut. The Canadians we offer are fully matured, clean in flavour, and will cut out without loss of weight to the last ounce.” Mr. Ellison, said Mr. Brash, had Immediately taken this matter up with the High Commissioner, who at once communicated with the firm concerned, who, in reply, stated that they had no wish to be unfair to New Zealand, and also that in the spring and early summer they say much *the same thing about Canadian cheese. GOOD NEWS CONFIRMED. The certainty of the rise in prices for New Zealand ’butter being maintained for some time to come was confirmed by another prominent dairy . expert seen by the pressman. “Yes,” he said, “the good news is true. In a number of cases sales have been made for Ap-ril-May make at Is 2d to Is 4Jd, and the High Commissioner’s cablegram this week indicates a price equivalent to Is Gid per lb. f.o.b. While the present improvement in price may to some extent be due to shortage or shipping space for butter from Australia ana New Zealand, and which would be only temporary in its effect, more encouragement is given to the dairy farmer from the fact that the British importer is prepared to pay as high as Is 4Ad per lb. for butter which will not be arriving in the United Kingdom until their summer make is at its maximum.” . The dairy expert went on to say that it was a significant fact that a large number of New Zealand factories were turning from cheese to butter. In fact, 16 had already changed or were about to change, on the advice of importers at Home through their agents here.