DAIRY PRODUCE NOTES.

Otago Witness, Issue 2085, 8 February 1894, Page 11

DAIRY PRODUCE NOTES.

(From Oub Special Cobbespondent.) 30 and 31 Fleet street.

London, December 30.

I regret to say that the Butter Committee from which so much was not unreasonably hoped for has virtually "bust up." It is the old colonial difficulty over again— the trouble in securing concerted action. It is considered by the more capable and experienced members of the committee that, could they have relied upon all hanging together, the price of butter need never have gone so very low as it has done. But two or three members insisted on a reduction, and so the others had to consent to split up the committee. Whether they were wise or not in making concessions which, as the event has proved, merely encouraged fresh attempts to " kick over the traces " and led in the end to virtual collapse may be a matter of opinion. But this was done.

The trouble arose through certain agents having a stock of butter on hand which they were afraid to hold, and not daring to disregard the injunctions of their principals at the other side of the w.orld to " sell at once,'-' they insisted on lowering the price to , the ruinous point at which alone could sales be just then effected. When it came to an open declaration that they, although members of the committee, meant to lower the price whether the committee agreed or not, it was manifest that the committee as a united body had ceased to exist any longer, and that its functions had ceased to be possible. Such was the view evidently taken by the author of the committee's existence, Mr H. Reynolds, who, after a vain effort to induce reconsideration of the announced determination to take independent action, promptly resigned his secretaryship, and retired from the committee.

Alarm had undoubtedly been taken by the dissenting members of committee at the enormous shipments of Australian and New Zealand butter known to be on their way. They feared that unless they got rid quickly of their existing accumulation they might find themselves " stuck " with it. And so they insisted, at the behest of their principals, upon forcing the sale, thus depressing the whole market in a very serious degree, and perhaps irreparably for the season.

Yet others are convinced that could and would these even have agreed to hold in for a time and hold out for a fair price, this would have been forthcoming. It is positively asserted that no real justification exists for any fall of prices below 112s, which is at least deemed a payable figure. But through the action taken, sales are being made at 100s. The moral deduced is that fresh measures must be concerted before next session, with the view of keeping the New Zealand butter trade bo far as possible in the hands of those who will conduct it on fair and proper lines, and who can afford to do so. In plain terms, something like a " ring " or "corner" will have to be formed, and provision made for storing butter in some suitable refrigerating rooms, such as those erected by Messrs Nelson Bros. Then, if sales are dull, holders can keep their butter safely until an improvement sets in, as it always does when patiently waited for. But then, of course, the London agents must be firms in such a position that they can afford to wait and to insist on being allowed due discretion in their management of the trade. If the whole New Zealand butter trade were in the hands of, say, three firms— as is virtually the frozen meat trade at present — then concerted action could be taken and relied upon, and much better rates would b8 realised. Mr Henry Reynolds has deemed it prudent to postpone for a month or two his visit to New Zealand in view of the unsettled and uncertain state of the market, but when he goes he will make a point of interviewing everybody he can get^at who is interested in the butter trade, alike in New Zealand and in Australia, with the view of organising a place for concentrating the trade more in satisfactory hands, so as to avoid the foolish and needless sacrifice which has been brought about this season by irresponsible persons, careless of all save their own immediate interests, and shortsightedly reckless of future results.

Messrs Reynolds and Co., by-the-bye, have arranged to have their famous •' Auction brand " butter on sale by retail, a Croydon salesman having undertaken to receive orders and deliver them to all parts of London. This should give considerable impetus to this special brand, which is very popular here. Another point which needs remedying in connection with the butter trade is that much of the butter landed in inferior condition has been damaged between the factory and the ship, either by lying about on hot wharves awaiting shipment or otherwise through tardy conveyance to shipboard. It is urged that the Government might afford greater facilities for the development of this important and growing trade, even by arranging for a small steamer with cool chamber to collect the bu.tter from coastal ports, and take it direct to the ocean steamer for shipment.

Ib if now distinctly proved and admitted that the finest New Zealand butter is superior to the beat that comes from Australia, and that New Zealand producers, if they will only take the needful care and painß, can easily beat Australia in the London market