BUTTER.

Dominion, Volume 1, Issue 135, 2 March 1908, Page 2

BUTTER.

DOWN IN LONDON, UP IN NEW ' . -\t ZEALAND. . THE OUTLOOK REVIEWED. / The movements of the butter prices'are as sensationally interesting as■ a'modern ' novel. Study this:— '■ NEW ZEALAND BUTTER, WHOLESALE' PRICKS. • In Wellington. In' London. s. d. • >- b. d.; Per lb., in pats 1 3! In bulk ......... 1. OJ Equivalent in ~ Less 1 freight, etc. 0 11} > bulk. 1.3} . ~' , Tho prices in some other New . Zealand towns are Slightly lower, but,, in every case there is a great excess over London,,prices. The.New:.Zealand situation might be ono for, congratulation from a farmer's point .of view if the farmers were, in reality sharing any of; the surplus gains,', But,,there arc. probably' ,verv few farmers who; are.benefiting; by the high prices. ' Nearly all the; factories sold thoir make,at_a fixed price in advance when the season opened, so that,the,extra profits now, obtained from , : the local consumers do not reach thfem. Of-course, morchxvts who. Speoulate risk a loss as well as a gain, and it.'is no part of' this-article' to . attack .a. system.'which obtains; all the world over. We shall endeavour,'; however,, to p6int/out that there are opportunities in existence, just now. for the dairy farmers themselves.... In the _flrst' place,' it has \ been , stated' authoritatively 1 that tho're."is;a shortage of: butter for'tho Wellington ;atid other local markets.'' At the', same ..time' tho housewives nro ideeply irritated 'at the high' prices t-hdy .are 'made to pay, and )he old popular, brands of butter are.'therefore just now in ill repute. .It has bfeen the experience of some-people in ; the ipast- that- unknown brands of .butter lia've been difficult to sell, r in the citiesV'arid .they have; therefore, been discoufiged from trying : the lopal markets. That is not the tioi) at' the, present"'-time. ■■ .Citizfehs would welcome a new brand of butter ,of guaran-' teed high quality if/Offered to ' them at a. price v which they would ridwr "Consider: reason? :able. But such supplies need to come from a\ reputable source, and their' arrival should; b# : 'advertised; in; as .striking ,ft. manner as funds would, permit. That the local markets "are ; well .wortll attention is proved, by,: rpcent .Statements of the head of a southern factory, which ,t]ie local ltiarket. asj'always. its best outlet. There, is obviously; no comparison between tho local prospects and those ofLondon, Tho London , prices .are ina very bad way,. and thoSe factories'.which are able will Jjb wise'' to. 'detach , themselves,' from. 'the English market' at ,tho .earliest'moment.' As wo predicted' a month; ago, the' sensational. "rise' of; price at' London; has .been, followed" by a collapse, and,...there' is every likelihood; of' ,a ..very bad ' time 'for 'the 'next' cou'plq' of The dcarness of biitter lias evidently taught the 'English' people to do without that' artielp; of diet. Margarine 1 is ' reported, to have'been largely"used iliStead, and, once having become accustoiribd 'to sixpenny margarines,' the' English 'consumers sire iiot likelj* go very fast /back to biitter, even at a. shilling. The fact'that in' one'great' stroke, the Danes reduced their pricb -last: week by £20 a tpn (instead of-.reducing;it;by-stages, Of; about £2 o'r '£3;;-as-usual)' shows their alarm for the .future. Here are': the'.nominal' ■ prices of, New,) "Zealand • .butter,- during: \tlisi past month,;, from.,,'which . the suddenness .ofthe decline,-will-be. ~,' '.NEW ZEALAND BUTTER, PRICES IN LONDON i Per cvt 6 Jan. 25 ... .:. ... 110 Feb 1 124 . " 8 rJ. 30 ' " 15 " 150 "22 ' , i" 1 - ' 146 ;r..; V :28" 'liß-v : ' v':', The drop has- not been.'due to increased Supplies,; for tho ' supplies oii" the' ; 'ninrket-' ! 'havd been' 'actually decreasing. This ■ aspect | of" the .matter-is-all tho 'more,', serious./'be- ' cause:it- ;appears to.' indicato : tliat' butter': Ms' gono out of use," and that when ■ norm'ar r stip- : plies ;aro .restored.' 1 the'slump' will reach' an abnormal level—probably ( below last -year's .figures. ...These faots are .eloquent. on this -'point;'—' ~ •• ~i QUANTITIES OF BUTTER IMPORTED TO ' .ENGLAND - ':.... CWt. • Week ended; Feb. ~'.: ' 104-,000 ■ ■ Week ended, Feb. 27,... 83,000 vCorresponding week last .year 105,000, 7 As ,to,',prices;' ,'if ; they are, to. fall- to -last year's; level,' w;e, must expect any moment, to llear of them,reaching 095., for" that was the value of New/Zealand butter in. London ;ou ; March' 2;'6f last; yeatS ; Tho. great point of all. for dairy'.'farriiers-'to thiiik'.of' .is '.the fact that butter that','is; saleablo .to the "Welling-. toil, grocers'; to-day'.at ,Is. . 3Jd. p'cr pound, jc'anhot roach London .before tho end of April. "What/will' be its';net; London' value tljen?;.: On . the".'whole,- tliero :is a' good case ' for making full Use of the conditions, of the local market.";;;' ''' '