THE TRUTH ABOUT BUTTER SUPPLIES.

Dominion, Volume 1, Issue 190, 6 May 1908, Page 2

THE TRUTH ABOUT BUTTER SUPPLIES.

A TARANAKI VIEW. are glad, to see.tho "Taranaki. Herald I '' —published, as it is, right-in the midst of the chief dairying community—pointing out to its readers, as Tnu Dominion has-be«n doing for two months past,, the real truth about the butter supplies. In a well-argued article, the "Herald" says:— "For some reason or other, it would appear, an attempt, is being made to' show that the stock of butter held within the Dominion for winter 'consumption is very much smaller than it really is.; Whether it has any bearing—tho pun is quite inadvertent —011 tho fact that, speculators a fevv weeks ago > were giving very high prices for the 'autumn make of butter we must leave those most interested to judge for themselves. The fact remains that prices were given for. April butter which cannot nearly be realised now. The phenomenal prices obtained in London : m February, coupled with the drought and ' bush fires in the dairying districts of New ] Zealand, mado' it appear that'.butter was 1 likely to be a very scarce and valuable com- 1 modity during the .winter, and speculators 1 eagerly seized the opportunity for a little gamble in futures. Tho collapse of tho London market and the break-up of tho drought here, followed by remarkably favourable autumn weather arid an ■' altogether unexpectedly large make of autumn butter, has put a very different complexion 011 the market, so that buyers who gave thirteen pence half-penny find it difficult now : to realise within twopence of that'figure. ; At-the same timo butter has accumulated iii unexpected 1 quantities in the. cool stores, so that at-'the '< end of April there were fully 70,000 boxes in . the public stotes and anything from 20.000 to 30,000 probably in priva'to' stores. Thus tho speculators are brought face to face with a heavy loss, unless the owners of nil this stored butter, and those who are still making, can be, induced to believe that there is a ■ likelihood of a" shortage ' beforo winter is over; and on that account to hold "for better prices than now rule, thus enabling tho spculators to unload as opportunity offers. . It is. not for us to suggest a course of action to those who hold • stored butter or who ■ are continuing to make, but it is just' as well that they should know—and they may rely, upon the information as : correct—that at the end of April- over 70,000 boxes—7o,l2S to be exact—of butter were held in the public cool stores, in addition-to a quantity—estimated at fully ' 20.000 boxes—held' in pj'ivato cool stores: It must also bo borne in- mind, .as , bearing on tho future of the local markets, ', •that on account of the phenomenal growth : of tho autumn grass' there is still 1 : a largo quantity of butter coming into store;"