BUTTER & CHEESE TRICES.

Dominion, Volume 6, Issue 1749, 14 May 1913, Page 10

BUTTER & CHEESE TRICES.

TAST AND FUTURE I'EOSI'ECTS. In nn article published in 'I'm: Dominion last June, wrilcs "Anjlo-Ci'lonial, I pointed out at somo length that tlio high prices which prevailed tho previous .vein- tor both butter and cheese could nou and would not, occur again, probably tor jnaiiv veins to come. i have made a roug'n calculation, and it comes lo'" 1 '®; That the farmers of New Zealand will receive this season, which is now drawin" to a close, a great sum . . '■ less (tor the same ijuantity of dairy produce) tliau they received last season. My article in Tjik Dojnxiox was intended to influence the farming community u> seli here, and throw the certain loss which was sure to occur, on wealthy English houses, who have abundance of means and various avenues of revenue. .My advice was not 'taken, and those who stimulated the tanners in false hopes will now keep iu obscurilv. So far as 1 can foresee, the trend of ali'nirs next season wilt also Ijo a ;«i;on of low prices. New Zealand farmers had better take an intelligent view of the position, and keep in muut that in the English market tliey have to conleml against I lie world. It is much easier and more pleasant to tell people what lliey wish to believe, than to liari a to. stern but probable fatte.

The Article Referred To. The article referred lo by our corresponuens contained the following pas"'"The prices of butter and chccsc have been abnormally high iu nil producing countries for a lengthened period, causcu bv a drought of unexampled length and severity, alfccting the wnole cf the Continent'of Europe, Russia, and Scandinavia. Ureal Britain and Ireland were al=o affected, as v.cre forge tracts ot dairying country in the United States ami Canada. As a result of this abnormal climatic condition, the production of butler aud cheese in all of the drought-affect-ed countries became enormously reduced, and the law of supply anil demand brought about a range of prices unheavit of for many years. 1 saw, recciuly, inticles in >Jcv Zealand and Australian papers, which would have a tendency to induce farmers to believe that high prices for the two commodities under discur-ion would be continuous, and 1 gathcrcil trom what I read that cheese factoiy o» iei n are increasing their outlay on and machinery, in the belief that i 0?. to . 75,. per civt. will" be a'normal average l '""'would adv'he llio.c interested to look for a price in Eoiulon .next season oi to Sfe.,' ahd for butter IUOs to 112s. per cwt. I should add here that I. am jiot now cuHueefc-d with i rane. W\ have X hveii iui* the last (lozjmi year.--. Ji anv reader can put his haml on a bcouMf t vM'M in 1593, on »» New Zealand,' anil another in 1901, iindei the present iioui de plume, lie will that predictions made by me tliukon veal's ago and eleven years ago have been anipiv realised, ami when ksay that L have'beeu engaged iu the Ir.'ide for tlurtj vears, it will bo seen that T am " lion lo take, a /l.niet survey ol able future position, and the pru't> liUiv to prevail.

What Happened in 1884. i "lu the spring of 1881, butter was selling in England us follows:—Vjuesc Danish, up io 1705.; Irish, up to IM*; margarine Ibfi- . The sole cause of these prices was the" closing of Danish and otner pons m northern. iCuropo by ice. Many people then thought these high prices had come to «tnv, though the cause was well kno.w, iilid ninny holders who had in s^oresmall or large stocks of Danish refused to part uml"r 17Hs. I knew one Lancashire nici- ■ chant who liekl, 2000 casks o (ronghlv, 100 tons), who was olleied <tur in" Alfttvh by""a syndicate of retail sw<jers. 105s. for the lot. "ins lie declined, li"iire being 170s. April came, awl with 'it the mild weather, and cnormouj nmmHtics of butter which had 'wen kept back bv Hie frost. As a result, the holder uf the" 2000 easts had to pan with Ji'S ulock at prices ranging Irani "P j° MR Ho only obtained Cos for the bu L "When the retailer can sell Kst Initta ■>t 1- per U)., the consumption i» at its 'hi"li('.si ievel, and the lowest level ot con\inupiion is readied when butter is Iml. or more per II). , "In Denmark, farmers appeal to be .at. I lied if tliev ean net an average ot Is. lb all the year round. In my espmonce, however, the average price ol 1- ■ I < : !«;r of all expends. they seldom tibial. .■ ' bill tlii"- have, of course. an aux.tii.il> , print, from lien, which average, a price equal In tha be.-t Irish. "The point which -New Zesilond faraici, | should keep in nimel is the fact "'at a | Imiieiuloiis impetus will be givtm to the iltduslry in all producing countries bj icI cent liigh prices. . . .'