THE RISE IN BUTTER.

Dominion, Volume 1, Issue 116, 8 February 1908, Page 3

THE RISE IN BUTTER.

' 'DOES: IT-. FORESHADOW A' COLLAPSE SOME POSSIBILITIES > x TEI.IOItmt—rttESS ASSOCIATION—COrTRJOm . • London,v February. 6. "' ■ y.■■■■•. .Thero is great demand for colonial 3ibutter. Sellers are making: their owi^ : - pnces. ; > Choicest . Australian -is ' at , - 1365.; Now Zealand, 1385.< [pnost OUE OWN COEEESrONDEhT.] ' •v- .; Elietahuna,'Last Night. ■ ■ A Dominion representative- to-day wa : shown a cablegram. received by a firm o woll-known North -1 fland manufacturers o (.■■■ . butter,-, which contr.hed an offor ot lots r per cwt. 1 for a -consignment of buttei oi board tho lonic. Inquiries mado have ehcitcc ■ tho information that the presont prices ar< ■ " unprecedented since' the Dominion started t( ■ 'export, though .15 yeais ago one shipment realised-130s. • / • ■ .v Inquiries In. Wellington.-? ■; Wellington ■ inquiries hare, elicited tlio new ■ that some partsof. the.Tongariro's shipmenl ; were: sold .at. 1355. and 1325..,.. Mr. J. 13 M'Ewan, vhose firm seourec tho latter -figure; '.attributes the rise to shortage of Australasian: butter, during. re- ■ cent, -He puts ; tho.'shortage up tc • the end-,of December at about 9300 tons. - . A forecast - received -by a Wellington firm ■ -on Thursday-put the-.probable prico for-the tv end. of;February,-at 112s, penewt... >.- < -.The lonic:will land -.Kcir ■ Zealand's,-nest :•>!! shipment.on. Friday 14.- -. , '. -'In. consequence of -the riso■.>there ,is- a ■ great disparity between the ideas of. buyers • •■and sellers in New Zealand on tho question of'.-'values,-and: local buying operations have diminished. ■ ::V; :v;.' -.••: '-'-i- ■'.V' Possible Dangers. \ This news of the extravagant increases in ' the' price' of Australasian butter , must not ■•be. regarded with .-unalloyed- -satisfaction. • These increases 'are.-not-of the.steady class - : of. increase which makes"/ its way step by • • itepsand Jiolds' it own. rlt iis of . the reckless, > bounding!; order.; that:sometime.*!.' precedes a •*"(». woil;*,-:- Butter,, is s not:- an ■ article <tbat . can :.'itand an increase of ,20s.vaicwt...in the space a week/!nthout:;thq.risk: of a reaction. ■viThe; danger; seems .to 'threafenVfrorii ;two juartere—tnatv is','-:- assuming jthat/, the retail '. ." price;at,Home'js advancing with the,wholesale Srice,. :.which,..;.^or-/reasons > stated below, i is oubtful. Those danger.' quarters are;' first,■ , ' decreased resulting- from; ecotiomies.in-tlie-.householdsofthe-Britisli - workmen ;■ .arid,; secondly;; a.., rushing Un, : of • . supplies from; close, to the London y . market to, share tho. .brilliant. prices. .srobably both these causes will operate together,: ;•••. 'n w Inch .case:: an -early substantial ; decline i must; happen..! ; Noue 'of the .opinions.; so/far ~: expressed by.;those "who 1 are experts, .in reading tho signs, of ihe rnarket'. attributQj tho extraordinary ' position ', to'aiiy exterisive shortage "(oft, he,apparent'supplies' due'from : ■Denmark, . Siberia, or ;Canada/,so' :. i .that.;:.an f early. ofl'. th'e market,; ' tempted-,by: the." high seems', exceed-': probable. ; . Household,' Economies. ' •. v ' In.regard ,'to the likelihood oft househo'd. , economies ..w woakening;: the demand, / the 1 P e °P'? of.- • Wei 1 ing ton .-will- not need - much \ . assistance 'to . realise : easily ' that can ' '' ifMi' 3Kpeks, * since' : r ; )>,eningtbn;buttei;,,w;en t iup a' penny.va pound,j.most .lvouseh'bldsj.-.jufjging'.'from.x'ommon-gos- ' -. sip, havo,. witnessed.-retrenchment.. ■ ;, Prices in,':Loiidpii, ;again,'.-are-being -'"watphed iio't 'only; by' New. Zealand,, but ;by- :. every ■:buttei--,.exporter,-inV'the-world. There ' are "hound,,to. : Hfi - str.ennmis efforts., made, by . - .near. tha 'ljondorL.market to .rusii the .great' '; to convert all available; butter fat into butter. Stimulate Production. ! > t ';Ono efffcet :may- bo" that countries ' ivhieh ■; . hitherto have not been tempted to enter; die butter-producing business, or have entered it • ' in :a 'half-hearted • fashion, 1 will' notice " the •: high • prices obtainable, and begin to' think' • *.! of :-their - own ability to share the: gains.. , On the whole there is reason to expect that| , tho. world-wide,advertisement that butter will'' get from tliip sensational lightning rise bfii.be' ' Home.. prices, may. react ••••oil the presbnt yiortunate.'recipients.of the high prices.i ;.'. : . . Butter-Faking. :: .;..AVhat' has happenedt is ,that, the, ■ : Home . trade - has - discovered,- as we. pointed ; out. yesterday,, that there is good money to :'be made, out:of the.blending business.- This is easily .apparent'.from-a few isimple/facts. . ftlt-,., all results•r.from the, celebrated ,Butter - Bill; which became law on January 1.- That Bill declared milk-blended' butier to ho the :only .legal substitute for,-butter.-: .Margarine .•.and'-butter are restricted to a water. percentage.of.l 6 per cent., but milk-blended butter 7 may,ib?: watered .up-to .24-per,qent. j, \' • ' ■...•■/This, difference, .offers a tremendous field ; .: for iwater-logging/colonial butter and. selling ' it: ,: as'tmilk-bTended-/hutter:.'' IKis 'intcresting' .-, -.: in :.this connection.;:to;take:. notice, .of",the' •I steady-efforts v.made :hy v ; our ,-Now.: Zealand . .-graders ;to omphasisa-the value:of dryness in butter.. -.Their, work has mo 'doubt; born! ! ■ fruit: so handsomely.that-tho British. buyers - have found our' butter. /a more .-fertile soil for .the:practice ,of-their;blending- craft than ' the produce .of : countries , loss' " dry.'.' ■ One " ~ hundrcd .and .twelve' pounds :bf , New; Zealand .- butter,: costing 1305.', can be ' watered or milk-blended up to iprobaßty 1241b.. costing . no more. In other words, the butter bought ' 14d. : ,may bo watered and:sold at a/profit' ' . ,at ,Is. . 03d. ..From .'this point of view our .111,- 1 :.,dustry. certainly : reaps a harvest.' but the ■' foreshadowed - may ..vet J follow/ .