BUTTER.

Dominion, Volume 1, Issue 283, 24 August 1908, Page 3

BUTTER.

THE OUTLOOK FOR THE SEASON. BRIGHT PROSPECTS. ~ A writer in'the Auckland "Herald" says: The butter market ,at the present timo is in an interesting stage, and it will be a very close finish between tho stored, butter and the now make now coming in. Prices still remain at. Is. 4id. wholesalo and Is. Gd. per lb. retail, but thoro may bo a drop at any- - moment, tho determining' factor being the increase of the new make to sufficient quantity to nearly supply local demand. . Tho new make is rapidly increasing in Taranaki, and the factories in that province are nearly' in full operation. In Auckland a large number of tho factories have commenced operations, and tho others aro busily preparing for the week after next.. There are now only about 7000 or 8000 boxes in store in New Zealand, and it is a very fine question whether the lot will bo,quitted at present-rates before the spring butter breaks ' tho price. The Taranaki 'and Auckland fresh butter is coming in. rapidly. The market will very quickly be: supplied, and then, of course, prices will have to,drop to something normal. The exceptionally mild weather of last week, combined with the rainfall' since, is bringing on the pasturage rapidly, and consequently the factories will be enabled to get into full operation in good time. It is well known that attempts were made to corner the Now Zealand market just at the closo of tho last export season, but the continuance of factory operations long after ordinary- 'closing time' somewhat upset calculations, and it is doubtful now whether the operations on tho market will more than pay interest ,on the heavy initial outlay, a large portion bf the butfer bought up being paid for at Is. 2d. per lb. The outlook for tho approaching season is particularly good, owing to the shortage of supplies from other countries, and the bare condition of the English market,, accumulated stocks having practically. been cleared. New Zealand has no surplus for export, and. Australia, where thero was a butter panio a few days ago, certainly has no surplus. Canadian butter has been in poor supply, and is going off rapidly, while the Danish and Siberian butters aro also falling, away in supply, so that butter from the southern hemisphere is going into tho London market with the brightest of prospects: Prices are, of course, regulated by the supply in London. If there is a surplus make during tho northern summer to carry on./for the English winter, and Home merchants are sitting with full warehouses, prices are low, but indications are that thero aro no accumulated stocks at all,, the barometer thus pointing to good prices for the opening sales of the fresh New Zealand butter.- Buy,ers_have not as yet shown their hands, but it is pretty certiin that the, factories aro fully' alive to tho situation, - and any con-tracts-closed will be ut a substantial- figure. Tho factory companies are' now commencing ■ to hold their meetings to decide whether the ■season's output <shall be sold on contract or -sent out on consignment. It is considered extremely.' likely, tnat with the lesson of the past year before "them they will generally leanl towards consignment. There is-just a danger of their expecting a little too'much, . perhaps, but the buyers' opening offers will have to be disclosed in; a 'cry short time now. With fair climatic conditions there is every reason'-to expect a very large increase'in 1 the output over that of' last season] which owing to the drought of , January and February fell off from what was expected, the export in consequence being comparatively small._ This season,, however, owing to new factories starting, and • the increases in tho dairy herds all over; the country, should see the largest butter export - yet recorded for Auckland. It is understood that three Tara- >' naki dairy companies—Eowgarth,'Ngaire, and Cardiff—have notified buyers that they need .not call- this season, as it has been determined to ship the produce of the factories' -through'-the North Island Dairy Association. ' :i -