BUTTER FALLING.

Dominion, Volume 1, Issue 284, 25 August 1908, Page 2

BUTTER FALLING.

SURPLUS IN STORE. CURRENT SUPPLIES INCREASING. Housekeepers will be pleased-to learn-that !?" extensive fall in the price of butter in Wellington is.imminent. The fall has already begun 111 Auckland. ' A Press' Association telegram from Auckland of yesterday.states:—"The price of all standard brands of butter had been reduced to is. Im. per lb. wholesale as from this morning.-'-' The present 'Wellington price of Is. 6d. retail was fixed not because of any actual scarcity, but only because butter holders feared that a- ■ shortage might possibly occur later this month.. That fear has now . vanished. Iho present position is that there are, in the. cold stores of New Zealand, 5000 boxes, or more, of reserve butter; that,the dairy, factories will be nearly all in full working order next week; and that there is no outlet for exporting butter at any" price corresponding with anything like the rate now charged to the Wellington public. There is 110 opening, for our butter 111 Australia, because of the lower prices now ruling there, alid'tho big duty. Butter for Britain is* worth,'at the rates now ruling in London, less than Hid. per lb. on the wharves at Wellington. It is impossible, therefore, that thp' very same butter can much longer be sold to the householders in Wellington at a retail price more than 50 per cent, greater than this. The present profits are not going into the pockets of the dairy farmers, but into tho pockets of those'firms who previously bought up supplies and are naturally anxious to realise at the' biggest price that can be exacted. Tho law of supply and demand, however, does nbt justify the present price, and an early fall to Is.- 2d. retail may be anticipated. Doubtless there are factories already looking for sales to grocers at prices which would cause that reduction, arid tho fact that city dealers are not likely to offer big fates till their dearly-bought stored butter is quitted will encourage direct sales to some 'of the more enterprising grocers.