ILL NEWS FOR HOUSE WIVES.

Dominion, Volume 1, Issue 307, 21 September 1908, Page 5

ILL NEWS FOR HOUSE WIVES.

NO CHEAP BUTTER THIS YEAR. • WHY ISN'T IT DEARER? The fact that the foreign agents operating among Now Zealand factories aro no>v offering as much as lljd. per ■ pound for the butter outputs of tho coming season must seriously shako any hope of cheaper butter during the next six months. If a factory can sell its output of a whole season in advance at 11,(1. net at Wellington without any risk, there is no inducement for/it to reserve its butter for tho local markets at less than that price. The local agent's commission, tho risk, and the patting may bo counted to cost a penny a pound more, and then the grocer will want his usual ljd. per pound profit. The retail price thus becomes Is. 2d. Tho factors counted in .this calculation apply for six months to como. Slender Hopes. Thero are only a few loopholes for brighter views of the outlook—from tho housekeeper's point of view. First thero aro, of course, many factories which will send their butter Homo on'consignment, at a certain advance without recourse, to be sold by agents, and ■ who may havo taken the precaution, frequently suggested by The Dominion, of reserving to themselves tho right to divert a specified part: of their outputs to the local or other markets if the Home prices should be low. This reservation may, of course, havo been secured by factories selling outright, hut it would not in, their case bo acted upon to sel} butter locally at a price corresponding to less than Is. 2d. retail. In the case of the consignment factories, however, if the present excess of butter going into Britain is going to continue all through tho season, there is a reasonable possibility. of English . prices falling bo_ low as to justify diversion of large supplies to the local market. Probably many consignment directors havo neglected to make -the ; suggested reservation in spite of the ■lessons of last year, and they will bo compelled to consign' everything regardless of price; but some possibly have done other-, wise. Will their supplies be sufficient' to ..lower local prices? Tho probabilities aro very strongly against it; and there will, therefore, bo dear butter. Abundant. But Dear. . . It will be'of no avail to argue that becauso there-is every likelihood of New Zealand's output of' butter this season being enormous, 'there/ore ' butter locally ought to ho cheap. : -Butter 'sellers have a tantalising habit of getting all they can for their butter, and they will be careful to seo that no sur-. plus; occurs on the local market. They will ship all tho excess—unless Home prices fall ■ very disastrously. They will rather ship away a large excess at a big loss than reduco the local'price of-butter by a penny a pound, because tho amount of butter sold • locally (in New Zealand) is almost as largo as tho total quantity exported. It is evident that it would pay bettor, to sacrifice 100,000 pounds of butter by exporting at a reduceven 3d. per pound and get Is. 2d. retail for the remaining 900,000 pounds,-than to reduce the price of the wholo million pounds to Is: Id. A Powerful Weapon. A reservation in consignment contracts must prove later on a powerful factor in t getting big prices at Home. It would, as / it were, put tho consignment house on its ..Kettle. If a Home house knew that a faci • t'.yy could hold back half its output if prices , I J'jre not satisfactory, it would take very ftfbfj pains-, to prevent prices from falling, v'; Apart, therefore, from any intention to fos- • i r r r .the local markets, the mero existence , i of the .reservation .clause*in«a^ consignment contract would be a powerful' influence iu : ensuring top Home prices. "! Wjhy Isn't Butter Desroc? : '

It would be quite'' plausible to conjecture that the only thing which prevents butter, eveni now,: from becoming dearer is tho fear hejd by those firms who 1 cater for the local markets lest higher prices just at this period J sliQuld attract the attention of outside fsc.tofiies before their hands are tied .up by contracts.- This dread of new competition is a very real spectre among tho operators on the local butter market. When it .has passed away—when sale or consignment contracts have been irrevocably signed—then it will be interesting to watch for the advance in local prices. Factory directors on their part 'should at least show their interest in tho welfare of their shareholders by demand-. : ing in every contract the right "'to-divert' a stated portion of their output to any other use. The clause will cost nothing, but will probably improve the returns even if not definitely acted on. On the wholo, the outlook-for those who "are waiting for cheaper butter—judged from the factors at present visible—is distinctly lugubrious.