Manawatu Daily Times. [ESTABLISHED 21st MAY, 1875.] SATURDAY, JULY 1, 1922. BUTTER PROSPECTS.

Manawatu Times, Volume XLVI, Issue 2164, 1 July 1922, Page 4

Manawatu Daily Times. [ESTABLISHED 21st MAY, 1875.] SATURDAY, JULY 1, 1922. BUTTER PROSPECTS.

Butter at two shillings a pound may not appeal to the housewife hut it is making the farmer smile, especially as there are indications that, the rise Is not a mere flash in the pan. As was indicated by the cables a few days ago a number of causes had combined to the benefit of New Zealand's hardpressed farmers. Owing to the dry weather in Europe and the greatly diminished supplies of butter from Ireland on account of internal troubles, the demand in London had greatly increased. This was attributed to a lot of Danish butter that usually was marketed in London being secured by Continental buyers. The dry weather has also caused a falling off in supplies of butter from Holland and Prance. It is doubtful if in the event of generous rains falling In the middle of summer in Europe, the results would be to cause the pasture to recover sufficiently to increase to any appreciable extent the output of butter in Britain and on the Continent. The. outlook is that butter will be scarce in London until the new season's make from Australia and New Zealand reaches that market, which cannot be before November-Decem-ber. Even then only small supplies are sent so early in the season. Good prices are apparently assured for the first arrivals of the new season's butter on the London market. Up to 1/S per pound f.o.b. is now being offered factories for new season's make of butter for delivery next October in London, which points to no sign of the market falling in the interim, and it would appear that those who make th offer are not taking much risk under existing conditions. No doubt farmers have already learned a salutary lesson from the recent slump following on the land boom and will not be tempted by the present advance, to repeat the folly of paying too high prices for dairy farms. It must be borne in mind that while the outlook poi.ils to high prices ruling for butter throughout next season, the causes are purely abnormal, and in due course butter must ultimately drop to its real oconomic value. Siberia formerly sent large quantities of butter to the London market, but owing to the revolution in Russia only some 500 tons were received from that quarter in 1921. Another point to be considered is that the Argentine has increased its production of butter enormously, also that South Africa, which used to import butter has started exporting that article to London. It is therefore only a question of time before the butter market must ease to what may be termed true market conditions. For the good of the country it is far better that a more modest price should reign, because the present high rate must lessen consumption and turn the attention of the consumer to butter substitutes. The real hope for permanent prosperity is in increased production and efficiency on the farm.