THE PRICE OF BUTTER.

Marlborough Express, Volume XLVI, Issue 118, 16 May 1912, Page 2

THE PRICE OF BUTTER.

REVIEW OF% THE SITUATION

When the figures of the amount of butter in cool store on April 30 were made public, the opinion was. freely expressed that prices would come ■down Id per lb. We-are now in the middle of May, however,, and no move has been made in the above direction. ' . v:/ . ~„.,■. ••'•'■ ■ ;;/ From inquiries made on Tuesday (reports The Dominion), it was learned in one quarter that the factories were firmer in their ideas of value now than they had besn for some weeks past, and, it is said, that it is impossible for merchants to buy any first-grade butter under Is per lb f.o.b. at nearest;port. It was pointed out that when this price referred to Taranaki butter, for instance, it meant coastal freight to Wellington, or the raising of the price to 12|d. In view of this, asked one merchant, ■could anyone say that the local price of 13d was exorbitant. The merohant in question contended that the price could be reduced Id per lb if makers based their values upon what they could receive for their butter by exporting it. It appeared, however, that makers were not going to <io this,vbut rather aimed at establishing a market price by holding the butter until they can get the price they are asking. - One wholesale dealer was of opin-, ion that the present price would hold, and that the surplus in the coof stores at the end of the winter would be shipped to London in the early spring, the holders taking the risk as to the price offerins:-then. It appears from what those most interested in the business say that the greatest factor in making butter factories stand firm on their present idea of values, is the price that the cheese factories in ■ their respective vicinities are paying out for butterfat. For' instance, when cheese factories in Taranaki are payiria; Is 2d to Is 3d per ]b for butter-fat, the buttermakers in the immediate vicinity are. ill a peculiar Position, the actual value of butter bemg about- lid to ll£d. This mri,kes the payment for butterfat used, for butter-making purposes not more thfin lid to ll^d at the outside. The position is a delicate and serious one for the butter-makers concerned, as the brioe for butter-fat must- be paid if the suppliers" are to be retained. Tlie consumer, appar■^+Jy. •is payipa; indirectly for: the r -.-.V--v-'•.•■< ->' -,•->;■-,-: