THE BUTTER MARKET.

Taranaki Daily News, 1 September 1922, Page 5

THE BUTTER MARKET.

NEW SEASON’S PROSPECTS. LONDON PRICES RISING. EXPERT’S OPTIMISTIC VIEWS. The prospects of the butter market for the new season continue to be keenly discussed. With a substantial increase in output for the early part of the season already assured, a firm market at reasonably good prices will mean much to those engaged in the industry and to the Dominion as a whole. After experiencing a sharp rise in the London market some weeks ago, when the price reached 236 s per cwt, New Zealand butter steadily declined until the price stood at 1965. The reduction was attributed to the fact that large supplies of Danish butter had been placed on the market. Shipments of butter from Canada were also being received, and for a time there was little inquiry for New Zealand butter in Britain. Notwithstanding these conditions, it was considered significant that quotations for New Zealand butter did not drop below the reasonably good price of 1965.

Another feature of the position that led experts to retain confidence in the immediate future of the market was the fact that good offers for the August/ output continued to be received from' London buyers. That this confidence was not unwarranted is indicated by the latest London market reports, in which New Zealand butter is quoted at 206 s to 208 s, with exceptionally good quality at 210 s. These prices are equal to approximately Is 9d to Is 9sd a lb in New Zealand. Strength is added to the report by the fact that within the Inst few days a parcel of butter that was carried over from last season was sold for export for Is 8d a lb, and several offers of Is 7|d a lb were received. FIRM MARKET ANTICIPATED. Discussing the maket prospects, an Auckland expert expressed the opinion that the market for the new season’s Dominion output would be firm at good prices. There w r as very indication, h a said, that the London market would be practically cleared of supplies when the new season’s butter began to arrive in Britain, and it should not receive particularly heavy supplies till February. Until that month the market should remain firm at good prices. With the arrival of large shipments in the United Kingdom from New’ Zealand and Australia in February, he added, some reduction in price might occur, but unless something unexpected transpired there should be no serious drop.

The speaker instanced the experience of last season, when the market slumped owing to large stocks of butter being held by the Imperial authorities. Directly the old stocks were cleared the market showed a remarkable recovery, quotations rapidly rising from about 110 s to about 150 s per cwt. Large supplies continued to reach the market from New Zealand and Australia, but instead of this having a depressing effect prices continued to increase till they stood at over 190 s. A factor to be considered this season, he said, was that the output of butter in Ireland would probably be considerably less than the normal production of 40,000 tons. Any deficiency from that source would have to be made up by extra supplies from overseas. CANADA AS A COMPETITOR. Referring to the possibility of Canada becoming a serious competitor with the Dominion on the London butter market, the speaker said that Canadian butter had recently been shipped to Britain. The Canadians hitherto had specialised chiefly in cheese, but as cheese prices had not been particularly good for some time the dairy farmers in Canada evidently had turned their attention to butter manufacture. This might have some effect on both butter and cheese markets, but hardly sufficient to seriously affect the prospects of the dairy farmers of New Zealand. That English buyers had every confidence in the market prospects of the near future, he said, was indicated by the fact that offers had been received from London of Is 9d a lb for the August output and Is 9Jd for butter manufactured in August' and September.