THE RISE IN BUTTER

New Zealand Times, Volume XXXIII, Issue 7849, 11 July 1911, Page 1

THE RISE IN BUTTER

DUE MAINLY TO DROUGHT STATEMENT BY MANAWATU FACTORY MANAGER. FBOIT ODE OWN COEEESPONDENT. PALMERSTON, July T<J. Tho majiagor of A prominent daily factory in this district points out that tlio present high price of butter was brought abont mainly by climatic- conditions. Ho says the majority of the butter factories export most of their butter, and this year, as usual, (his procedure was followed. Although the drought camo on, it was not anticipated that it would be so severe, as tho dairy companies thought that a couple of days’ lain would relievo the situation. However, the drought hold on, and it became apparent that there would eventually be a shortage. Recognising this, tho management previously alluded to ceased shipping Home a full month before tho usual date, but oven then the amount, available for winter use fell far short of requirements owing to tho almost entire cessation of daiiwing in several parts of tho district. The experience of the local company, ns proved by present results, has hecai that of other companies in the North Island. "The drought caught thorn on tho hop. they did not Stop shipping soon enough, added the manager referred to, and that is the position in a nutshell. Luring the months of January, February, March, and Anvil the milk cheques to suppliers fell short by fully 50 per cent, as compared with the previous eeatsan, and tills is .the reason for the scarcity. Tlio pipeeent labour laws were also to Gomo extent responsible for the increased cost, since factories had to pay a full week's wages, whereas they were, only putting through half the quantity of milk. One company’s cost of manufacture* alone rose from the usual lid per lb to Sd, the extra amount being accounted for bv wages, fuel, and carnage, which, as stated, remained the .same, whilst tho production was only half what it should liqve been. It will be seen from tho foregoing," said tho manager, "that there is very little ground (or allegations as to the cornering .of , tho market.” He added that the dairyman, the actual supplier, was not _ a po-DTiy more for his milk, despite the increased price of butter. On<v local concern had had to purchase 4o toms of butter to supply its own local demand, but fortunately for it tho purchase was made before the 1 drought got very bad. It will ■ not be consoling for: consumers of butter to learn that there is not likely to bo any material reduction iu tho price of butter before the first week in September. It is considered that it wiA take the milk of all cows “eonungnn during the present month and part of August to keep up the present supply.