BUTTER PRICES.

Dominion, Volume 1, Issue 152, 21 March 1908, Page 3

BUTTER PRICES.

•THE FALL BECINNINC. ■A change is-beginning in- Tegard-to the • local, butt-or prices. Sonic ■of tho Taranaki .factories • Bare •• alreadyoff ered ; their April . outputs locally, and in at; least one. case •an actual-' sale' at, thirteeii period 1 'has been, made.! .'.Other, ifactories/ 'are 'asking'.' fifteen '.-pdncej . with,, however, no (hope of getting:it. ■ The position:' that we have .all ialong .-predicted is now arising. . Factory' directors, -whoso'contracts are expiring, realise that -with prices down Jn England and up in Now Zealand there is;;no-encouragement to cxportj "out ; that the'local market-' is. their best; outlet.- . Merchants have allowed large quantities ■-(over 40,000 boxes) to bo already forced into cold stores, and, when theso have to be unloaded . alongside :of ' moderate supplies from outside upon ; a market that' -has • learned , to do ,/with"; about two-thirds Its usual quantity of butter, thero rwill be an inevitable drop. • There is no reason to-suppose' that winter, prices'are going to be:.excessively low, but- there is little ! doubt that those factories which get quickest on' tl\e ; market - will reap ; the best harvest. The lessons' .taught' by the period just ending . are trenchant. They seem,to be these :— That;,the' local . market, -to a considerable extent, - is of more account than tho market at Home. V : .That'; the local price never falls as low as .. the net . price in London. That the local- price goes higher, and re- , mains high longer/.- than-.it ever does in London. - - :. That, the general average' local'price' hero' is always' better than the net average of London.. -That' consignment should ? : be' v tbe;';Tule. of • r the' future on, modified . : t'ermsV ; somewhat as Allows : - ; : • ■ - Up.to about the end of November: Advance, with. or without recourse, ' for tho wliolo output. '. .. 'December: Three-quarters , output, I,with option of.sending-the whole; advance / .on three-quarters. January; and February : Half of output, -' with option of sending whole: advance on ':■ hsilli .- ■ ■ March.miw'ardsi A.freeihand. ... -The .ionlyapparent' drawback of. such. a system the factories would have less advance money to distribiito totheir, suppliers early in ; the - season..' • But' , the- advantages ; ; are, obviously more weighty.Whiletho i ■' factories will always be able'to .export'their I whole output-if they desire, to prevent over-' , loading tho local 'market,, they will:. always be .able, .t-o- share. ; the'-spoils-; whenever the local prices invite, them.. The statement of one of tho directors of the.Taieri and Peninsu!3 ,9? m P a , n y o! ). r 'y, ' n ,the season that they refused vto export. oven. when the London boom was at',its height because they valued ■ the. local market more than : the foreign is ■ worth remembering.V. '