THE BUTTER MARKET.

Gisborne Times, Volume XVIII, Issue 1454, 15 May 1905, Page 4

THE BUTTER MARKET.

The slump in the butter market has eome sooner than was anticipated, still the valueß ruling at 95s for New Zealand choicest is very much bettor than the position of a year ago, when tho best price was 86s. The significant feature of the market is tho arrival of 19,1740 wt. of Siberian batter. It isnot,alarge quantity, but when we take into consideration the conditions prevailing in the manufacturing localities, tho soaroity of labour, tho difficulties of transport, and the political unrest, it ia surprising that even so much batter has been placed on the market. Onr producers will have to reckon with Siberia in the near future, and when the war is over and the foreigners, who really own the butter factories, Obtain an opportunity, they will Bpeedily turn out tho quantity, for they have much lost gmund to make up. Tho present slump will affeot the late shipments from the oolony, and will slightly reduce the average price for the season, but even with this, the dairymen of New Zealaud will have had an excellent year. It is a question, however, whether the dairy farmers are not working on too small a margin. In Taranaki the late drought and the shrinkage in supplies had a marked effiot on business. The difference of a half-penny exercises a serious in, fiuence, and this is too close a margin to work upon with a commodity liable to such market fluctuations. The dairymen hove enjoyed a long series of prosperous years, and it would be unwiso to assume that there will be no break to suoh prosperity. How then will they stand up against adverse circumstances if a temporary drought has a serious effect ? Land values have been unduly inflated, and the land agents are not a little responsible for it. In Taranaki tho agents obtain three selling prioes from the seller—the cash price, the price on terms, and tho “ swapping ” price, this 1 tter being from 25 to 50 per cent, above the cash price, and a good deal of business is being done on this basis. The frequent ohanging of dairy farms show that specu* lotion is playing an important part, and this will end in disaster for some.—Post.