BUTTER SEASON.

Dominion, Volume 2, Issue 588, 17 August 1909, Page 10

BUTTER SEASON.

PRICES AND THE SURPLUS. OLD STOCKS GOING HOME. Tho timo for activities in local butter transactions is now near, ami:probable prices arc'being gauged. The general expectation is an average of .about lOld. per pound, f.0.b., thouglr there is some hope of seeing IOJd. reached in certain cases. Theso prices represent a reduction, of about one penny per pound from the excellent pricc3 or last season. Nobocly, of course, has expected last year's prices to be repeated; and if prices d-> not descend below- 10} d., '.dairying will still- remain a paying proposition, particularly in view of the improvement of tho yiefils, which will surely follow tho yieldtesting movement, which tho various farmers' associations, and the Minister • fqi Agriculture, have- begun-' to initiate. ' It' is predicted that the testing scheme; will, in a short time, increase- tho-.output of-.sdmo of the herds by 50 per' cent.; and, in that case, butter at 10Jd.,/with the,bigger yield, would pay bettor than butter at; lljd. under tho old conditions.'.. ...... ■ ' ■ .., ■ Cheese prices are also said to bo likely to see a fall of a penny per pound.; This;seems to bq scarcely warranted by tho present indications, for although Canada ps made, efforts to increase her cheese output, .the lijgh prices ruling for dairy cows show, that those efforts are ; heavily. handicapped; . The cheese market, however, is not likely to escape a, slight fall tliis season, but there is no clear reason to expect that it will fall to the ■ butter level for ■ at... least another twelve- months. The butter-exnorting season beg.in early tin's month both in New Zealand and in Australia,' with.stored butter. About 3000 boxe3 (75 tons).of New Zealand stored butter have been exported- this month, and about 42$ tons of Australian butter were exported last month. This Australian butter .is' , considered to have been some of last season's surplus, although the flush of the new "Australian make cannot now be far away. It is said that much inferior butter is coming out of tho Australian stores, and tlie best quality of stored buttor in Australia is difficult t( obtain. This (and perhaps New Zealand , ! 75. tons also), will go into cold store-in. Eng land arid come' into competition with.'- ou: new make. That of.course' will be detri mental to general interests, and may cauß' low valuation—a fictitiously low valuation'to, hamper Australasian butter for a-period 'After the' complaints of'last season,'•' 'Nm Zealand, of course, cannot afford to trifle with the market. Low quotations that may be cabled out a month hence after this stored butter has gone upon the taarket must not cause any misapprehension.

Good stored butter in , New Zealand is also, aid to bo scarce, and holders are thereforetanding firm ill regard to prices.' Bad tored butter, on tho contrary, is reported o be rather 'plentiful. It is evident that here is more, butter, in, thc.stores.than will ie. required.for local use before the new buter comes along, and prices must fall very ,oo!i. A few small sales to Australia and iccasional inquiries from tho south tend, lowever, to postpone the drop, and the penny fall will not take place till the end' if August. The news supply will then-be almost; sure to be nearly equal to the .demand, and local prices must be adjusted to. the export values. Possibly shilling butter' may be common this summer.' ..... , ..' ...