WHY BUTTER FELL.

Dominion, Volume 3, Issue 751, 25 February 1910, Page 8

WHY BUTTER FELL.

. ' WEAvK. LONDON, HOLDERS.';. . . The.Minister for Industries and Commerce: has, received the following, report, .dated , December ■ 24, : 1909,; by the.Produce Commissioner*'in London," irom/thid High Commissioner:— ■'■:■■ , ';.: .." . -;

■;!■ "As, indicated iri the'.report which' I mado to you, und'by the'cable dispatched to -Wellington last week,, the/marfcet for "Now Zealand butter has been in ah uu-.-satisfactory;condition. -Although it might have been expected that owing to a conBiderabl6' ; shrinkage in ithe* supply of Danish butter; aiid fne" increased demand by ■"retailers'*'ifor. their requiromeuts .for Christmas : trade, prices for • New Zealand parpels ex Tainui would have been firmly, maihtnined,-this was not .done. Agents handling Danish butter advanced prices tp.tKeir:clieuts,- and obtained 1275.128s. per.cwt., 1 and in some instances as high : .a§. 130 a. :On tho other-hand, unfortunately,- several agents handling Ncw ; Zoalanii butter; 'instead of holding tirmly, appeared to:be.nervous, and offered par■celsthey.were li.iridlingat,reduced prices. Naturallyi ■'buyßrs, seeing this, hung back and reduced'their offers., Several weak holders 'sold • Nowi'Zealand .butter at 108s. :fid. and; 109s. per- cwt. In nly opinion, the price -realised^for- "butter on'the spot ■the weekirp'reVions/to the Tainui's/ai-ri-.val—ll2s.*-per /cwt.—should, -have' been, maintained. -There.-wasi no valid reason forihoilow prices mentioned being ac-. -cepted, b)it 'natnrally,' when' his was done/ stronger holders had to follow the mar-, ket, and reduce tlieir prices accordingly.' In 'this manner ;thei average" , quotation could not be made liigher-.'than ,110s. for New Zealand butter last : week. This week, however, owing to ,the bulk of the'Tainui's "shipment haying .passed into second hands the market' has again been firmed 'up; and 112s. has : * been realised '.for'it. v..:.'"S - - •■'/ '-..•■ ... .'

. "Of course, now' the Christmas trade is fully satisfied and with the expectation of a-lull in business next week and at the same time of.largo .'Australian arrivals, there is a tendency towards lower prices again. The Danish. quotation is this week- being' "reduced so that I do not anticipate tho. New Zealand quotation Can 'bo r given.'.higher than Ills, per owt. ._•■'.' ]■..■ .'':./■ ■-.-' ■■.'■■.■■■.

"New"Zealand butter this season would appear '.to -be more widely distributed than , usual - in' ;the hands "of selling agents, nnibngst whom there is no concentration 'as in the Danish trade/.for the maintenance of values. . Everywhere satisfaction ;is. expressed /.with .the quality of the V butter -"arriving from : the' Dominion this-season, urnf although I have made numerous, inquiries no complaint of fishiness, or other'fault ,has ueon reported to 'me. . . ■ . '

"The cheese market: is very,.quiet;, and :at present' .the outlook is 'not. promising for any advance in the price. Here again it is pleasant to have to record the fact that buyers express satisfaction with the quality of Now Zealand cheeso-. this season." Trade this week .has not been at all brisk,', and Ms. per. cht.'.for"coloured and : uss/.per'cut;' for,-, while is nov, , the ■:■,'-.."; ;."'