BUTTER DOWN.

Dominion, Volume 1, Issue 286, 27 August 1908, Page 3

BUTTER DOWN.

\ REDUCTION OF TWOPENCE. \ I FURTHER FALL LIKELY. V..i - ' .—- - \ V THE EXPORT OUTLOOK. Tho fall in tlie jirice of butter forecasted in The Dominion two days ago lias begun. A reduction of'2d.' per pound in Wellington took place yesterday. This makes the wholesale price of the top brands . Is. 2Jd. per pqunaand the retail price Is. _4d.. This is . the same grice as that now ruling in Auckland.' A further reduction to 12} d. wholesale and Is. 2d., retail may be expected shortly. The output of 'the\Uairy factories is reported to be increasing vory rapidly! and it is now exceedingly.. doubtful if the Wellington and other merchants Np'll bo able to quit all their stored butter at any considerable margin over cost price.- ."■■■• \ . It is estimated in some quarters that there are 1000 boxes of butter in storo in Wellington, and there must, he at least 5000 boxes stored in all parts of tlio Dominion. A small portion of_ this was recently purchased from the factories at Is. -4d.- per pound, some of the- city dealers ' genuinely believing that there was going to be a famine.' This belief was'shared by, some city authorities; and many factory directors, deceived bytheprc; dictions, refused good offers, expecting a still tighter market to develop. Factories, however, which sold their September outputs at 12Jd. are likely soon to be congratulating themselves on their far-sightedness. As to the Exporting outlook,' that buyers are in >a humour to offer big figures will of course—wisely—be made the toiost of. And it will tend to subdue the strong fpelirig towards consigning , that now exists. -At the same time therß-is : very strong justi-' ficatio'n.< apparent;, for.. the extreme optimism - expressed "in some quarters. . While no We can--say:with' any degree of'certainty that prices are going .to-bo low next• season, neither can one with any greater assurance predict that'thoy will be-high. It is useless, to'base-opinions on reports that-come out by :mail of the conditions- two months ago. The truest conclusions are those formed on the.-j" evidence of what is happening ■ now. That evidence is that there is a considerable surplus of butter going into Britain, and, consequently, that the; output- from Europe and-America is heavy.;: It'is a -question for guesswork whether the surplus is being consumed or stored. Tho Franco-British Exhibition and its crowds of visitors in the boardinghouses arid hotels reasonably account for a greatly increased, consumption of butter, but that exhibition is to close early in November, and reduced consumption should naturally follow.. The whole- position, however, is one in which there is abundant room for the exercise-of good business sense on the-part of factory directors. The reservations suggested in The Dominion of July 30, giving, factories the right to divert part of their outputs to the local markets if they desire ; should not bo lost sight of .in any bargains that are made.