THE BUTTER SHORTAGE.

Dominion, Volume 4, Issue 1201, 9 August 1911, Page 8

THE BUTTER SHORTAGE.

.POSITION OF THE MERCHANTS. The amount- of comment heard of late in .regard to tho high price of 'butter prompted-inquiries' yesterday from a wellknown butter merchant. ."Looking back on tho winter," «aid the merchant, "it in the.-most difficult one that it .lias-been my experience to face. I do not think anyone anticipated that such prices were going to rule for tho following reasons:— At March 31 last, there were 32,237 boxes in store, as against none at'all for tho eaino period of the year previous. Thou at April 30 there were 8000 boxes.in storo in excess of ths quantity held for the same 'period last year. There whs thus surely so-ine justification in view of these figures, for the opinion that high prices were not to rule, and it iwas not until the figures..of the .quantity' in. storo at JMny.'il were out that it .was found, that the' May make, hnd gono down inch a lot. In other words wo commenced May with ROOO boxes.iirexcess of the quantity held fof theprevious, year, and finished the month with a deficit of EDOO, showing that the May innke went'down, approximately JGO tons." Continuing, the merchant, in "question said it was ridiculous ito say that the high' prices had been s caused as a result of any , combine, or ■■ even speculation, as from his knowledge !of tho trade throughout. X;ew Zealand ho : was 'satisfied that merchants had lost ' micro than they had made as a result, of the high prices. From.', tho factories' standpoint ■Hie'position' was'just as unfavourable, for it had to be understood th.it- the same plant and staff were required to he kept going at the- factory during"' the off-season as was required during the flush. In other words, the factory -might be only milking ,10 boxes every other day. but had a capaci/ry- for 50 boxes a day," so that id. a pound working 'expenses oil tho 10 boxes would not pay ns well as Id. par lb. on 100 boxes. 'The position to-day was that at July 01 there, .were-; approximately ' 4717 boxes in store, as against lll.Sflt for the same ■ pe-ried last year. This showed that tho position was one of hand to mouth.. Th*. factories were asking, aud. getting for prompt delivery,'up. to Is. 3d. per lb. net. r.a.h., aud this butter had to be packed and delivered tb stores at l=. 3Jti, less w> it would be seen that merchants were' making nothing out of t.hs business as it stc-pd to-day. As far as a <lrop in price wns concerned, he did not think one could l>o looked for "before ■'September IV