CAUSE OF THE SLUMP

Daily Telegraph (Napier), Volume 59, Issue 72, 28 April 1930, Page 5

CAUSE OF THE SLUMP

ON LONDON DAIRY MARKET. MR GOODFELLOW EXPLAINS. OF INTEREST TO HAWKE'S BAY DAIRYMEN. In the course of conversations that I have had during the past few weeks with members of the dairy farming community in Hawke's Bay, I have heard so many widely diversified reasons advanced for the present slump of the Dominion' s dairy produce on the London market that the views of Mr W. Goodfellow, managing divector of Amalgamated Dairies, Ltd., should be of interest. He says : — "The London butter market has become demoralised and bas relapsed to the lowest point since the great slump in December, 1921." With heavy. quantities of New Zealand and Australian hutter in sight and a mild Winter in Europe, it was only to he expected that values would be lower than last season. The decline, however, states Mr Goodfellow, was aceentuated by the recent. financial disturbance in New York, but, nevertheless, taking qll these faciors into consideration, it was undoubtedly the fierce competition among the agents selling New Zealand butter to the big buyers which was directly .responsible for the low prices. According to the report received on April 10, the market closed firm with the company's make at 126s, after large saies of New Zealand butter had been made at 120s. It was quite possible, however, that these saies would be used as protective stock, enabling the big buyers to hold off the market again whiie competitive selling once again reduced prices. The slump in New Zealand butter had brought others down with it and to-day Danish butter was offered at less than pre-war prices. In his opinion, 148s, with a ls 6d retail price, would have put all this season's New Zealand ' hutter into consumption, and the present prices were therefore quite unwarranted. It was impossible to say how long the present position wonld obtain, but a late Spring in Europe would reduce stocks and th® stage might shortly be reaehed when the multiple shops and other big buyers might consider it the opportune time to stock up. The weekly deliveries last month totalled 1425 tons. The f.o.b. market had been quiet, although Eastern Canada- had displayed a certain amount of interest, but only at low prices. A fair amount of business had been done at ls Hd f.o.b. for April shipment to Montreal, and the whole of the available space had been booked up. Referring to clieese, Mr Goodfellow states that this market showed an unnecessary sympathy with butter, and i.i spite of a much sounder statistical position had eonsistently declined. There seemed no reason why this position should contir.ue. He hoped to see a return of active buyitig shortly.