THE BUTTER MARKET.,

Wanganui Herald, Volume XXXXIV, Issue 12747, 19 April 1909, Page 4

THE BUTTER MARKET.,

The recent drop in tho price of Npw Zealand butter on the Home market is exercising the minds of those interested in the dairy industry in the Dominion: The fall in values is attributed partly to the early arrival of Siberian and Danish supplies, and partly to the excess of moisture in the Dominion article. In the past the reputation of New Zealand as a dairying country has been built up on a "dry butter." Some few years back New Zealand butter averaged a moisture percentage of about 105, as against about 13.50 for Canadian butter and 14.50 for the Danish article. The percentage of moisture' in New Zealand butter has been steadily creeping up ; it averaged about 12 last year, and this year has gone up to somewhere near 14. j The New Zealand Herald suggests that factory managers, noting that Danish butter with 14 per cent, of moisture scored as good prices as New Zealand, concluded that it was good' business to make a moister butter. A two per cent, increase over a big output represents several hundred pounds in money value, but the moisture percentage affects the keeping qualities of butter. Our Auckland contemporary advises New Zealanders, in order to land a thoroughly good article on the London market, owing to the long distance, and to the fact that boxes have to travel in hot sunshine in ordinary railway trucks, and stand much handling before being shipped, to manufacture a dry butter and a dry butter only. A butter containing 14 per cent, of moisture may be equal to Danish when shipped from New Zealand, but it is not equal to Danish when placed before the English consumer, and for continued good prices and good reputation, a dry butter is absolutely essential. There is no surer way of wrecking the reputation of New Zealand butter than to add a high percentage of moisture. For export purposes 11 per cent, moisture is as high as New Zealand dare add with safety if it wishes to keep up its reputation. The Herald says that the indications for the winter point to the conclusion that prices are not going to be very high. Compared with the factory selling price, the local consumer is paying too high for butter. Wholesale rates are not likely to drop, for the reason that Australia is not over-sup-plied, and the South African market is still making calls on New Zealand butter. Present indications are that there will be no shortage of supplies for the local market, and it is unlikely that attempts will be made again this year to corner the market, because of supplies from factories that keep going practically all the winter rendering "cornering" operations too much of a gamble, with the odds against the operator. Buyers have lost fairly heavily this season, although not by any means proportionate to their profits last season, and it is fairly safe assumption that at the commencement of next season, first contract offers will be low. The season has been a remarkably good one, and has meant the distribution of a very large,, sum of ironey throughout the Dominion. Given a continuance of present weather conditions, many factories will continue manufacturing for some time yet, and this ought to, at least, ensure abundant winter supplies, if not result in the storage of a quantity for export at the opening of next season.