THE COLONIST. Published Every Morning. Nelson, Friday, June 26, 1908. THE BUTTER MARKET.

Colonist, Volume L, Issue 12279, 26 June 1908, Page 2

THE COLONIST. Published Every Morning. Nelson, Friday, June 26, 1908. THE BUTTER MARKET.

There Is, from al\ Accounts, a decidedly hopeful outlook for the coming butter export season, though it is too early as yet to talk of contract s, and the farming "community in dairying districts may look forwrard to compensations for the losses the drought and fires of a few months ago inificted upon them. New Zealand is finding fresh markefcsjfor- fcer produce, and prices are being w el I maintained in London. Late reports go to to show that prices are father higher than is usually the case at this time of the year. Among the new countries to which this Dominion is sending Hbutter may actually be numbered the Argentine, which for some time bade faiito become out West formidable opponent in the English trade> outside Europe. Talking over the situation with a Northern contemporary, a gentleman closely identified with the trade remarked.^* few days ago that there was no ring controlling Nbw Zealand butter. -Some butter was held at Wellington, fifty-seven tons having been returned owing to better prices being obtainable in New Zealand, and probably half tbe storage is held by the factories themselves. No one with the real interest of the industry at heart will Quarrel with the factories for holding and maintaining the best prices they can get. If th£ butter is not quitted at the price asked by the factories they will simply swing over their atcrage for export at the opening of next season, and they are acting wisely. Prices being higher now indicates a bare market at Home, and it ~is quite reasonable to expect that prices will open well in the spring. The factories, on the present outlook at any rate would not accept contraots for the next season's supply on last year's basis at 10% d. Last year the first defiuite offers were made at lOJ^d, and they worked up to lO^d. Making a conservative reckoning, the b-ttar taotories of New Zealand last season lost .£250,000 by contracting for supplies. That is the difference in the amounts reoeived by the factories and the prices paid for the butter on the London market. The basis of contracts made in the past season was lO^d^to lOJ^d, whereas prices over the whole season never dropped down to that. Of course buyers give a guanantee and a factory is secured against loss in the event of a fall in price, but factories should study the position before closing with contracts, and study it very carefully. Take an average over the fast Jen years. , In only two out of the ten tne buyers lost on contracts, and the profits on last season alone would more than recoup all they had lost without counting the profits of the other seven years. The seaßon before last tbe buyers lost on contracts, and their other los was five or six years ago. A great factor in the industry is the tremendous increase in the consumption of butter. All over the world people are eating more butter. In the United States there has been such an enormous inci'ease in home consumption that America is consuming all the butter it makes, and is practically absorbing all Canada makes as well. In New Zealand there is a very great market, and a rapidly growing one. It is estimated that the local consumption of butter has increased by over 50 per cent fin the last five years. -There being 'such an enormous home consumption in America, which draws so largely upon Canada, and the Siberian output having decreased so much, augurs well for' New Zealand butter during the next season. It will go Home on a practically bare raarkket, and on the present outlook factories | will undoubtedly hold off from ponracte* It is fairly saf©;tp assume

that :the*b'u'yer9 having made a g od profit last season there will bo far more'ooDsigninj on '"factories^ own acoount next season. .^,_^ „.,.-^