MARKET FOR BUTTER.

Taranaki Daily News, 11 September 1922, Page 8

MARKET FOR BUTTER.

' THE RISE IN LONDON. CAUSES OF SHORTAGE. HARVEST FGR MERCHANTS. (Auckland Herald.) London, June 23. Although the remarkable rise in the price of butter during the past few weeks comes as a surprise to almost everyone, the caused are such that it seems strange it should not have been foreseen by a larger number of those in the trade. The quotations since June 7 are worth recording. Early on that day best New Zealand butter was quoted at 168 s per cwt. Later on the price had risen to 170 s, and before the business day was ended it had risen still further to 1755. On June 9, the earliest quotation was 184 s, and it went up to 186 s before the end of the day. On the 12th it was at 190 s; on the 13th at 1945; and on the 15th the price reached 199 s. Since then the quotations have been going steadily up, but very little butter lias been changing hands. Three days ago several small sales were recorded at 2245, but no one is really eager to sell, even at that substantial price. There are certainly some unforeseen causes for this rise, but it may be taken to be largely the result of the removal of Siberian and Finnish butter from the market. Last year there was the great supply of Government butter which disguised the actual shortage at that particular time. This year, since we have no supplies held over, we are dependent onlv on what the season has produced in various parts of the world. The result is a distinct shortage which is likely to continue, it is thought in Tooley .Street, until the New Zealand and Australian produce is again available in quantities in December. But there are other contributing causes for the shortage. There seems to be a general shortage of supplies both in Europe and America, owing to drought conditions, and it is recorded that America has been buying Danish butter in Copenhagen. France has also started to buy butter from Deninaric and Holland, and inquiries have been made for New Zealand and Australian butter for French account. Italy, too, is reported to be short, due to intensely dry and hot weather, and South Africa is also buying for winter trade requirements. In addition, the Danes are at present tinning large quantities of butter for their Indian, Eastern, and Island trade, and owing to its disturbed condition, Ireland is sending very little to this country. In all these circumstances, therefore, it is fairly evident why there is a shortage. Canada is sending a quantity, but not enough to make much effect upon the situation.

Before ‘the end of this month the Raranga is due with 53,000 boxes, and the Tainui brought 2000. All this is sold but prices arc not fixed yet. Next month 121,000 boxes of New Zealand butter are due in London. On July 1 the Waimana arrives with 43,000 boxes; the Cornwall on July 7, with 25,000! the Woodarra, with 15,000 on July ]0; the Matakana, with 13.000 on July 27; and the Carpentaria, with 25,000 on August 1. This is a fair quantity, 1 7 probably not enough to prices >n. It is understood that the bulk of this produce has already been sold by the dairy factories, probably in the region of 1625, so that the merchants here are out to reap a very promising harvest of 62s or more per cwt. on their goods. Producers who have sent their produce on consignment will be congratulating themselves that they are able to share in the high prices now ruling.

The question naturally arises whether the producers should not make an effort to alter somewhat the period of output. At present the bulk of New Zealand butter arrives in the winter along with Australian, South African and American. If the New Zealand produce could arrive here as early as September and October, and if instead of the,greatest proportion coming in ‘December. January, February, and March, it could come in May, June, and July, there would be the chance of a much better profit than is at present obtained.