THE PRICE OF BUTTER.

Auckland Star, Volume XXXIX, Issue 69, 20 March 1908, Page 5

THE PRICE OF BUTTER.

j A SERIOUS OUTLOOK. FACTORIES CLOSING DOWN. The position is nut relieved ut all in i regard Lo the butter market. The recent, I rums came too late to make any material dUl'ereiii-u in the season's output, and I there is a tremendous shortage this peason, compared with lasL. A., the winter approaches ihe outlook is likely to become more serious, and a great deal will depend upon the Apnl-.Vlay output. This morning a " Star " representative 1 interviewed Air. Paeey, secretary of the New Zealand Dairy Association, and ■ gleaaied soiu'j interesting information regarding tile present situation. "■ We have already closed down two places which should have run till May," said Mr. i'aeey. " And 1 have just been advised that two factories which, at the beginning of January were receiving 1570 gallons, and 10UO gallons of milk per day respectively, are now receiving Itiu galloiu> and 120 gallons each per day. Tins falling-oti serves to demonstrate the position throughout the province. Both these factories will have to close down within a fortnight, and the probability is that several others will do likewise. •• One of the greatest diiliuumea we have to contend with is that, notwithstanding the reduced supplies, the manufacturing expenses are just as great now as at the Hush of the season. Hence butter is more costly to make than usual, j and the higher prices being obtained do not nearly compensate the extra cost of manufacture. Those factories which were not under contract to send Home their outputs ceased to export earlier than is usual. Butter companies have j been blamed in certaiu quarters lor not i withholding more, but of course it can be readily understood that at present cir- , cumstances were not to be loreseen. Otherwise, in their own interests, they wouid have held back more than they , did, and the occasion would not have arisen, as it has done in the South, to bring back shipments from England." "Are the circumstances in the Auckland province such that we will have to bring butter back from Great Uiitain?" " The question of bringing butter back is rather overdone,' , was the reply. "The conditions in Taranaki are much more i favourable than in Auckland, Wellington, | or the Island. A fair amount of butter is still being made there, and is being held for sale in less favoured districts. Exports to England will probably cease with the next shipment, and there is a feeling that butter may then for a short time be more plentiful. Whether the slocks now hold, pUw the forward manufacture, will meet requirements, remains to be seen. Possibly, ' when the autumn make is reduced, and before the winter is over, conditions will j become even more stringent. On the other hand we may lind stock? heavier than was reckoned. Whether prices go up or down depends on which of these conditions prevail, but in any case it is unlikely there will be any change in the price of butter for some time to come. Possibly there may be an advance before the winter i.s over, but there is no disposition on the part of the butter companies or merchants to exact the last farthing, as extreme prices always disorganise trade. ■ i