PRICES OF BUTTER

New Zealand Times, Volume XXX, Issue 6493, 13 April 1908, Page 5

PRICES OF BUTTER

LONDON AND NEW ZEALAND DEICES. VOLUME OP FACTORY OUTPUTS. PRESS ASSOCIATION. AUCKLAND, April 11. The New Zealand Produce Commissioner in England, Mr H. C. CXuneron, the Chief Dairy Commissioner, Mr D. Cuddie, have been making the rounds of butter houses at Home, and as a result Mr Cameron cabled to the Prime Minister and followed up the cable with a letter which mUd© some rather startling allegations against people concerned in the industry at this end. Theoc statements were referred by a “Herald” representative yesterday to a number of firms engaged in buying factory outputs on contract.

SHORTAGES IN CONTRACTS. One prominent buyer said there were undoubtedly shortages on contracts mad© with Home firms, but equally so there were great shortages on contracts mad© by factories with buyers here. H© produced a list to show the shortage in the case of each factory he had contracted with, revealing an average deficiency of 20 per cent over all the contracts. Asked to wiAit he attributed the shortages, ho replied that the butter business was really a gamble on the weather. The phenomenally good season in 1906-7 had resulted in big outputs, and for the contracts for 1907-8 the factories were father inclined to estimate the outputs on the basis of the previous season. “SWINGING OVER.”

Another gentleman closely concerned in the trade said that unfortunately in some parts of New Zealand the charges made by Mr Cameron wereU “true bill.” Some operators on the market had adopted the “swinging over” dodge; they hod bought outputs up to the end of March, and had closed contracts with Home firms at prices ranging from to Iffld a pound. Then prices went up in tlio Dominion to such amounts as 18id and 14d, and the operators lessened their export® and sold butter in New Zcaftmd at these prices, taking the chances of meeting the claims of Home purchasers for shortages on contracts. The Home firms would claim for the shortages on contracts at the difference between the price of contracts stipulated they should pay Und what the produce was worth on the Homo market. This would work out at from $d to lid per lb, so that the operators reaped tho balance of difference between this and the prices realised in New Zealand. Whatever had been done in that line had been done within the Dominion, and there had been no shipping past the Home firms. Of course it was questionable practice hnd would do harm to the industry, Undouucedly there was shortage owing to the dry period, but the shortage on Home contracts was greater than the shortage on actual factory outputs. The dry sdhson had caused ‘the whole thing, it having resulted in short supplies and high prices on the local markets, and hence the temptation to “swing over.”