THE BUTTER TRADE.

Dominion, Volume 4, Issue 1097, 8 April 1911, Page 8

THE BUTTER TRADE.

MARKET CONDITIONS. . A • well-known' butter merchant was interviewed yesterday morning with referehco. to , a paragraph in Friday's Dominion", headed "Butter Being Held." It is admitted that it was true that factories wero holding for high prices, but ho, failed to see how those prices could be 'justified by market conditions elso'whero, or a possible shortago of supplies. With 'reference to South Africa, it was incorrect to say that they jcould notget butter, for at the present time fairly largo quantities had been contracted for, but a big volume of business had gone to Sydney and Melbourne, as a result of lower, prices ruling there. For .instance,' South Africa can- buy ' best pats at IOJd. per lb;, f.o.b. Sydney or Melbourne, while thev coulduiot buy New, Zealand under about llfd. per lb. -Then tliero is to be added to'.this extra freight- from hero to Sydney, which is id; 1 per lb., malting New Zealand lid. "per: lb.-ahead of Australia.• Our quality is better, and as a rule wb .'"can get about ,-Jd. per . lb. more for oilr butter than Australia, but when it conies'to lid., the business'must.pass. It will bo seen', therefore, that the outlet for South Africa is limited,. and as lojv prices are ruling at Home, factories are-storing earlier this year than last, with the. result that at March 31 this year there was'in store throughout the Dominion 32,257 boxes of butter, as against practically none at tho same period last year. Iu the.face of,the above particulars, this merchant failed to see-how high prices could rule, and mentioned where factories were already weakening in their ideas of. value. Reviewing the position briefly, he said that' butter for export would realise about IOJd. ..Then why should factories get ;.froni • the New Zealand consumer a higher price than they could get from ■anyone' else? ■ .