THE BUTTER MARKET.

Otago Witness, Issue 2862, 20 January 1909, Page 20

THE BUTTER MARKET.

SALES ON COMMISSION. ■ EFFECT~ON~PRICES. i WELLINGTON, January 13. Messrs J. J. Lonsdale and Co., of London, the well-known firm of butter merchants, in a business letter written to Messrs A. S. Paterson and Co., of this city, make some statements regarding the ; effect upon priges of butter which has resulted from the Australian practice of ■ consigning whole shipments of butter for i ' sale upon commission in preference to ■ selling thep in advance to btitter dealers. ! ' The practice has been followed to some ■ , extent in New Zealand, and the letter is . intended to convince dairymen and others ] that their interests would be served best \ by straight-out sales. The firm states ;

that never in its experience has it know] the butter market to be in such an absc lutely false position as it was in at th 1 time of writing (some six weeks ago) and by way of explanation the letter attri butes the position to the fact that so called purely commission firms had n< interest in the trade other than to sel consignments as quickly as possible. Th result was that the max'ket was new considered by these receivers. It v^a; a case of helter-skelter to sell at an^ price, and the owners "paid the piper.' The firm's letter in conclusion states tha " This method of consigning must at al times be a great disadvantage to th< butter market generally, and we mus certainly take it into consideration h future operations by making sure tha' people on this side have a sufficient in terest in the market to make at lcasi some attempt to stem a collapse ; other wise purchase at all times will be verj unsafe." It is Messrs Lonsdale and Co.'s opinioi that instead of Australian butter having been at 104s per cwt. (some six weeks ago) there was no reason whatever, says the swamping of the market by " purelj commission " sellers, why 114s should noi have been obtained.