WHY BUTTER FELL.

Gisborne Times, Volume XXVIII, Issue 2751, 4 March 1910, Page 2

WHY BUTTER FELL.

WEAK LONDON HOLDEKS.

The Minister for Industries and Commerce has received the following report, dated December 24, 1909, by the Produce Commissioner in London, from the High Commissioner: “As indicated in tho report which 1 made to you, and by the cable despatched to Wellington last week, the market for New Zealand butter has ■been in an unsatisfactory condition. Although it might have been expected that owing to a considerable shrinkage in the supply of Danish butter and the increased demand by retailers for their requirements for Christmas trade, prices for New Zealand parcels ex Tamili would have been firmly maintained, this was not done. Agents handling Danish butter advanced prices to their clients, and obtained 1275-128 s per cwt., and in some instances as high as 130 s. On the other hand, unfortunately, several agents handling now Zealand butter, instead of holding firmly, appeared to be nervous, and offered parcels they were handling at reduced prices. Naturally, buyers, seeing this, hung back and reduced their offers. Several weak holders sold *.ew Zealand butter at 108 s Gd and 109 s per cwt. In my opinion, the price realised for butter on the spot the week previous to the Tainui’s arrival—"ll2s per cwt. —should have been maintained. There was 110 valid reason for the low prices mentioned being accepted, Out naturally, when this was done, stronger holder* had to follow the market and reduce their prices accordingly, in this manner the average quotation could not be made higher than 110 s for New Zealand" butter last week. .1 ujs week, however, owing to the bulk of the Tainui’s shipment having passed into second hands the market has again been firmed up, and 112 s has been realised for it. Of course, now the Christmas trade is fully satisfied, and with the expectation or a lull in business next week and at the same time of large Australian arrivals, there is a tendency towards lower prices again. The Danish quotation is this week being reduced, so that I do not anticipate the Now Zealand quotation can be given higher' than Ills per cwt. “New Zealand butter this season would appear to be more widely distributed than usual in the hands of selling agents, amongst whom there is no concentration as in the Danish trade for the maintenance of values. Everywhere satisfaction is expressed with the quality of the butter arriving from tin* Dominion this reason, and although f have made numerous inquiries no complaint of fishiness or other fault has been reported to me.

“The cheese market is very quiet, and af. present the outlook is net promising for any advance in the price. ’Here again it is pleasant to have to record the fact that buyers express satisfaction with the quality of New Zealand cheese this season. Trade this week has not been at all brisk, and is per cwt. for colored and 55s per cwt. for white is now the general quotation.’’