BUTTER ACCUMULATING.

Dominion, Volume 1, Issue 143, 11 March 1908, Page 2

BUTTER ACCUMULATING.

OVER 20,000 BOXES IN STORE. WILL PRICES FALL? - .•Butter.; produoors ;and .Merchants' are y this year storing oarlier than uiual'. -j Tlie : quantity of butter-in cool store'in New Zealand at the end of February is officially/put. by the Dairy Commissioner ',at 21,517 , boxei. This is equal to 538 tbbs.:.'The stored butter is distributed as follows:— . V' : ,i , ■ .. . . ■■ ■ Boxes. ' ■ Wellington .:. < ... 7045 ■ i .vAucklahd ... .6937 ;-;New Plymouth ■ •v. 5632 ■■ Patea . . 1100 Dunedm ... ... i.. -425 Lyttelton : ' ... ■ '.... 828 . Total .. ' 21,517 These figures will bo of interest to merchants, dairy farmers, and the general butter eating public.; 1 and they , offer material for a I sorts of Speculation as -to their meaning The storing has begun a month earlier this year;,than last. This'fact ;may mean one or more of four things:— 1. A fear that the winter's output will be very short. ■ • • ■ 2., An expectation ; of low- prices in London; ■3. Inability to, sell, the accumulations locally, at the ruling: high/price., 4. Cheap butter very soon. A's to reason No. I,' the 'break-up of the drought, and the splendid growth of' grass reportedrfrom all parts under the mild rains and, continued warm weather, must-greatly modify the outlook. ; Increased milk yields are already being .reported, and, in. spito or what' is' sometimes, said, .to the contrary,' improved food certainly does cause considerable !in .the yields. ' The presentprice in London (1225., per cwt.) is equivalent to about Is'. 6jd, net in New Zealand. It is not generally expected that' this price will be; greatly exceeded ';in- London. for the Vest .of'the. season; the.prospects,are. rathe. - ' for. a further.'falK Tt seems, therefore, to be a''reasonable' view" to take, that .between the lbw prices in'' London ;and tho abhormally'high prices fixed in New Zealand there have been, 540 . tons .of butter squeezed out. into the cold, stores. This butter was stored at a '-'timo' when the •: drdught was in, full possession, and the step was a prudent and business-like one on the part , of those who have a regular connection of winter clients to citer for. But with a prospect of greater supplies of. winter butter than was recintlv anticipated, it will become a question foi consideration whether the local price of- butter Should not be now reduced to ease off the supplies. For, after all, it has to bo con ceded that a'New Zealander's' money is just as good as a Londoner's. [ Thero is no. doUb 1 ' danger in further delay. , Already tho high price has given s'evenpenny -margarmo-'ai introduction to the community, as a wholesome product^that is useful for some purposes for which butter' has; hitherto been used. It; is idle to overdo the storing business with a vagu'o expectation of continued high prices. The stored butter- reported' a c tho ond of March of last yoar amounted to 64,039 boxes. ' If the storing for, the present month be of equal volume, there will, be, in three weeks' time, 85,556 boxes of butter accumulated. "'