BUTTER MARKET.

Waikato Times, Volume 107, Issue 17980, 27 March 1930, Page 2

BUTTER MARKET.

POSITION IN EUROPE. RATHER DISAPPOINTING. A letter received last week by a large exporting firm from its London representatives throws some interesting light upon fhe fluctuations of butler prices in England and on the Continent. The butter market (it runs) still lacks the desired vitality. Prices on the whole remain fairly steady, with minor fluctuations the feature of a rather disappointing position. We get two or three days’ good business when confidence begins .to grow, followed by a quieter spell during which buyers become unsettled, shortly afterwards to be encouraged to try their luck again by another spurt in the demand, only to have history repeat itself in another little reaction. Consequently, the ultimate result is lack of confidence; yet the actual statistical position is not unfavourable if (and it is a big “if") some solid Improvement in the Continental demand or a seasonal shrinkage in production takes -place. But the fact is, the whole of Europe has experienced such 'an extraordinarily mild winter that dairying has been maintained at a ratio unknown hitherto. Some ( of the northern ports, which are usually icebound during the winter months, have- this year remained open all along. The butter and egg producers are feeling the direct effects of this mild winter and even the Irish Free State and Northern Ireland (our immediate neighbours) have been able to prolong their production to the exclusion of imported butter. We have supplied Ireland with less than half her usual winter requirements. Another feature is that owing to economic conditions Germany is producing more dairy produce and importing less. The lack of demand from Germany has generally, affected the values of butter and eggs, leaving a larger surplus to be absorbed by Great Britain. We do not attribute current prices in any way to the combines of certain Multiple Shop Companies, nor to the Margarine Union, as is so freely discussed. They buy as largely as ever they did, but in view, of the general conditions prevailing they have not speculated and invested a lot of money in butter ahead of their requirements, hut have been content to purchase their supplies like the majority of the trade have been doing, more conservatively, something after the week by week basis. , The butler position is the direct outcome of production and general economic conditions. '