THE DAIRY INDUSTRY.
FALL IN THE LONDON MARTCET,
In connection with the cable received from London which appeared, in Saturday's issue, stating ■ that the Vbutter market had slumped, a representative of the "Auckland Star 1 ' made (V inquiries today as to the probable effect..:',.£;'Pres» Association , telegram, from Wellington referring-,.t0 this 'news states:—"Th« news of phe butter slump.in London ias occasioned some concern ..'locally. Butter is down to an average; of, roughly, 9Jd per lb, while the, outputs of. many factories, were purchased at. the beginning of the season at an average of lljd per lb. On this -basis, the loss -is Ud per lb, or roughlyl, £17! 10/.per ton. In addition to butter already .on the market, there "are heavy shipments afloat, .perhaps the heaviest that have been shipped, from N.Z.-at this time of the season since'the industry started.** In conversation -with a business . man, largely interested in the dairy, industry, the "Star" representative was informed that fortunately this had come too late in the season to seriously affect the industry for this year; Tie fall in London is due to the.first arrivals of the Danish and Siberian butter on the. market, and in-ordinary season'this does not come until N.Z. export has practically ceased, but this year the season has lasted longer than usuaL There is not the slightest chance of butter-be-ing brought to New Zealand, as that can only, be done when prices are high here, and even then it does not pay., Of •■ coursethe position at' Wellington-"indif-ferent at present to what it is in Auckland. A new firm, has started in that I city, and as a result, there has-been a I good deal of slaughtering' of .butter" to get' the, trade. "With.:, regard:,:.'to., the statement in the cable that the quality of New Zealand, butter is unsatisfactory, it is strange that such should Ije cabled and yet shippers here-have-not received any complaints. It is "very-fortunate that there are only about eight weeks to run this season before, the close down. . ... ..;:;..'..,..J.. »„
As to the loss of those who had contracted ahead, it|must'be'borne in mind that they bought for the Whole season, and while they may loose now at the fag end, they no doubt miadertheir profit earlier on. It is not likely that prices ia Auckland will be seriously- affected,- because there are no large stocks stored here as export was continued -later. There are still a few' shipraents'sto- arrive in "London, and .for.those" lower prices wilTmost probably have to be. accepted. The question of the -price of butter in the .immediate fitture-in_ Auckland depends a good deal-upon weather conditions. Last year there was-no really cold weather until' well oh"t"6 the end of May, but this ~ a~slharp cold snap set in at "the end of March._ A continuance of such weather would shorten supplies considerably and then price's would be -firm. •'
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