THE BUTTER FAMINE. (From Our Own Correspondent.) CHRISTCHURCH, August 1.

Otago Witness, Issue 2734, 8 August 1906, Page 21

THE BUTTER FAMINE. (From Our Own Correspondent.) CHRISTCHURCH, August 1.

The addition of another penny to the price of butter, which was already higher than usual, has made Christchurch housewives wonder how much further the increa°© wil} go, and what is the reason for it. The w«at-her, which is blamed -for co much cannot be held accountable in this case, for the winter has been very open, and the grass has hardly ceased growing. In. order to ascertain the reason for the upward tendency in the cost of an article in such common use, a. Pres6 reporter looked up several of the leading merchants to day It turns out that the greedy man of London is responsible for the moveme-nt which has carried dismay to many a New Zealand family. "There has been no butter in the country for some time oast," said one dealer. " Too much has been shipped lately, and the demand in Christchurch has been far in excess of the supply; consequently, what is left is sold at enhanced -value. Besides, there is little fresh butter making at present. As a rule, factories are selling from th« store at this period qI the year; but,

as I mentioned before, too much exportation has taken place previously, and the small supply left has been disposed of, except in the case of a Christchurch firm, who still holds a small quantity." He aid not" think the North' Island factories were holding on to large supplies in the expectation of prices rising. The high prices offered in England had tempted them to export what they had. It was pointed out that last week the quotation for Sydney butter was 9d. but tfefc merchant stated that he did not think that that could be so. The present price retail was Is 4d, and wholesale Is 3d, and, ao» cording to a recent quotation from Home, was about Hid ; consequently, if it was the best, Australian producers conld get 10jd on the Home market for the butter. If he were certain it were the best, he would not miud importing some of it from Sydney himself, but he added, " I don'fc think those cables tre to be relied on. 1 * Continuing, he said several of the local factories hero had offers at 10£ d per for export f.o.b. during next season — that: is, from September till March. By tho end ol^this month he thought there would be plenty of new butter available at lldE and Is per lb, «s North Island butter would then begin to come on to the market, and was^readily bought up. During: the last few yoars it has not paid to store butter to any extent for speculative purpo"?e6. and people who had tried it had made little out of it. But the factories wero • makings money fast, and as much as 3d had been" made on this class of butter recently. Two other merchants stated that the local supply was about exhausted. The butter* from the North Island was only received in 6mall .consignments, and th© merchant had to pay the freights, and -had to mill li — that is, mix :t •up again-, — and" cut it into pounds. This butter cost from Is OJd to Is 2d wholesale at the factories; consequently, when the local dealers add the freight to the wholesale price, °it conld be seen that the dearness is caused through no fault of theirs.