BUTTER.

Taranaki Daily News, Volume LI, Issue 210, 26 August 1908, Page 4

BUTTER.

THE OUTLOOK FOll THE SEASON. JJUIUHT i'ivUSI'KOTS. A writer in the Auckland Herald, says: The. butter market at the present time is in an interesting stage, ami it will lie a very dose linish between the stored butter and tin. m.\v lm ike now coming in. J'riccs still remain at Is 4'/aJ .wholesale ami Is (id per 11). retail, but there may be a drop at any moment, the determining factor being the increase of tile new make to sufficient quantity to supply loeal demand. The new make is rapidly increasing in Tarsilinki, and the factories in that province are nearly in full operation. In Auckland a large number of the factories have commenced operations, ami t|he others are busy preparing for opening the week after next. There are now only about 7000 or 8000 boxes in stove in Xew Zealand, and it is a very fine question whether Ike lot will be quitted at present rates before the spring butter breaks the price. The Tar-anaki and Auckland fresh" buM:or is coining in rapidly. The market will very quickly be supplied, and then, of course, prices will have to drop to something normal. The exceptionally mild weather of last week, combined with the rainfall sinci, is bringing on the pasturage rapid'y, and consequently the factories will be enabled to get into full operation in good time. It is well known that attempts were made to corner the New Zealand market just at the close of the last export season, but the continuance of factory operations long after ordinary closing time somtiwhat upset calculations, and it is doulitful now whether the operations on the market will more than pay interest on the heavy initial outlay, a large amount of the butter bought uu being paid for at Is 2d per lb. The outlook for the approaching season is particularly good, owing to the shortage of supplies from other countries, and 'he bare conditions of the English market, accumulated stocks having practically been cleared. New- Zealand has no surplus for export, and Australia, where there was a butter panic a few days ago, certainly has no surplus. Canadian butler has been in poor supply, and is going oil' rapidly, while the. Danish and Siberian butters are also falling away in supply, so that butter from the southern hemisphere is going into the London market with the brightest of prospects. Prices are, of course, regulated by the supply in London. If there is a surplus make during the northern summer to carry on for the English winter, and Home merchants are sitting with full warehouses, prices are low, but indications are that there are no accumulated stocks at all, the barometi r thus pointing to good prices for the opening sales of the fresh Xew Zealand butter. ISuyors have not as yet shown their hands, but it is pretty cerlam that the factories arc fully alive to the situation, and any contracts closed will be at a. substantial figure. The fnelorv companies are now commencing to hold their meetings to decide whether tinseason's output shall lie sold on contract or seal out on consignment. It is considered extremely likely that with the lessou of the past year before them thc-y will generally lean towards consignment. There is just a danger of their expecting a little too much, perhaps, but the buyers' opening offers will have to lie disclosed in a very short, time now. With fair eliint-.tic conditions there is every reason to expect a very large increase in the output over thai of last season, wjiich owing to the drought of January and February fell off from what was expected, the export in consequence being comparatively small. This season, however, owing to new factories starting, and the increases in the dairy herds all over the country, should see the largest butter export yet recorded for Auckland. It is understood that three Taranaki dairy companies—Lowgarlh, Xgaire, and Cardiff —have notified, buyers that they need not call this season, as it has been determined lo ship the produce of the factories through the Xorth Island Dairy Association.