THE DAIRY PRODUCE MARKET

Otago Daily Times, Issue 13665, 7 August 1906, Page 6

THE DAIRY PRODUCE MARKET

HIGH PRICES PREDICTED. (From Our. Own Cobkespoxdext)

.. „ T AI CUvLAXU, August 6. Mr f>. lurner, who has just arrived from Sydney. . representing Messrs Willis and Kiley, English provision merchants, speaks optimistically of the butter and elioesc prospeels. Prices, ho says, during tho coining season arc going to bo exceptionally high in London. The causes for this are several —I he cold east winds over England (which reduced the mill: supply), tho ifroat short, ago in the Argentine (where I have boon), the.enormously increased consumption, the greater demand in Germany, and decreased exports from the United States.

Won't, you think that, that will recti fied should, ho was asked by an inter viewer?

"Xot this season. AVe are certain to feel the elteets of the shortage, and prices will be very high, factories selling thoir output at under lid per lb for butter, or 6J(I I>CI- lb for ch««\ iirst grade, net. f.0.1)., in w Zealand, will make a great mistake Last year two corners were made in cheese, and some firms hold enormous quantities this war. The price, therefore, 'annot possibly come down, because these two iiugo companies, who have boon cutting each other's throats in paving big prices in Canada, would he absolutely ruined if they allowed prices to fall. At'the time I left Home the price for oltl September cheese was phenomenal, and tho prices of inferior new-made cheese; which is like eating leather, was about. 60s per ewt. These fuels should make New Zealand factory managers consign, rather than sell on last year s • basis, bce.-mse prices arc going to jump still higher. Xo faatory should he satisfied merely because if is get ting record prices.- Tho very facl of the English merchants offering record prices proves that nicy know that still bigger rales will come. London merchants do not gamble unless they ai'O practically sure of their ground. I have closely studied the matter for the last- 10 years, and can say that- only in one year, 1902-3, did the merchants lose bv buying outright. Their loss was then due 10, unexpected and enormous arrivals from Siberia;. but Siberia has now her official statistics like other countries, and the experience cannot be repeated. In nine years out. of 10 the merchants who gambled in Now Zealand butter and cheese won as against, the factories which supplied them. Of course, the merchants are careful to loudiy herald their few losses and to keep silence over their manv gains. Thev never tell you of their sales at 120s, 118s, and 116s of .butter which they bought at 107s, landed in London, and in consequence factory managers using the only figures available imagine that they, _ and. not the merchant!;, have been tho winners. Remember my word?, and watch for phenomeual prices next season."