THE BUTTER OUTLOOK.

Taranaki Daily News, 30 December 1922, Page 8

THE BUTTER OUTLOOK.

PRESENT PECULIAR POSITION. It is difficult to understand the butter market. According to the representative in London of the National Dairy Association there was a rally in the butter market, due to lower retail prices and Christmas buying; and it was intimated in the cable message which was dated London, December 16, that a decline in values was expected in the near future. New Zealand butter was then selling at 180 s to 184 s, or Is to Is 71d per lb, wholesale. On December 23 a leading importer of butter in London stated that consumption had increased enormously owing to the retailers selling at Is Sd per lb, a price which did not show a profit on the wholesale prices of ]s "Id to Is 7fd, and it was suggested that the wholesale price would have to come down at least 10s per cwt., or the retail price be raised. If the latter is attempted the consumption is bound to decline and stocks accumulate to the detriment of all concerned. If the wholesale price is lowered as suggested, the consumption will continue, and probably expand, for there is every indication of a trade revival when more men will be in regular employment, and there will bo more money available for expenditure on butter. It. seems probable, therefore, that the wholesale price, may be lowered, and if this does happen the price of Now Zealand butter will rule at about 176 s io 1745, which is a very good price indeed. and one that should leave the dairy formers with a fair margin of profit.'and this on an increased output. Tn any event New Zealand dairy farmers are assured of a very profitable /season. The lifting of 199.990 boxes of 1 butter, or 4759 tons, by the United States will help New Zealand butter immensely, for it will prevent that quantity being dumped on the London market. The Americans have been ; buying’ considerable quantities of Danish butter, and this demand helped to maintain the Vivlue of Danish butter

on the Loudon market. On December I’6 New Zealand salted butter was quoted at 189 s to 184 s, and Danish a.t 20’8s to 2125, a difference of 28s, whereas usual!v (lie margin between the Iwo butters is about 10s. New Zealand cheese at 122 s tn 124 s nor cwt. shows a great improvement on the quotations of last year, when the wholesale price was 90s to 90s.