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Hokitika Guardian, 16 October 1930, Page 4

The low export value of (butter con-, tinnes a matter for serious thought by all interested in the prosperity of the country, Of course butter is not the only commodity which has slumped in price, beoanse in respect to many other commodities the market price has touched lowest rates, Notably there are such products as rubber, cotton, copra, jute, tea, coffee, cocoa, sugar, etc, but of course butter prices bring the situation home more directly, and after all it is small comfort to find producers ot other necessary products in the same plight. Indeed the all round drop in commodity prices is an aid to the. depreciation of the butter market, because with a falling income all round, there is a wider stringency, hence the general effect on commodifies. The only satisfactory aspect o that while prices have contracted, production of butter has increased so markedly. This has been compensating to some extent, but the effect is now being felt from this through increasing storage of stocks held for a rising market ■ which refuses to respond, despite a cheaper article for consumption. Formerly, it was the general practice for a low market to precede a rapid increase. This was tho experience repeatedly in the past, but nowadays the price continues to fa'll, and still the market remains stagnant, and stocks accumulate. The position grows more and more serious. With the present course of events and the outlook ahead, the position calls for very careful handling by those in the trade. London prices are now equivalent to less than a shilling in New Zealand, and are down to pre-war prices when costa of living and material were so much less also. There is the call now for economical management, and careful handling of finance. The fact that Canada is out of the New Zealand market definitely, is going to be ci* serious import following the drop in London prices, and must delay any prospect of a rapid return to former advantageous prices. Unless the great surplus product of butter from this country can be sold on the Home market at more favourable prices; than prevail at present the prospects for the producers is serious. Naturally the respective managementdo the best they can according to their lights, hut with the present and prospective situation in mind there must be a serious overhauling of costs of production so that* the best can 'be got out of the business nt the lov, prices prevailing. The strictest economy in production should be practised, and where savings can be made by the amalgamation of forces, if only to tide over the difficult period, this should 'be resorted to so that producers will get the most out of the available prices ruling, lit is a time to get together and study the problem in all its bearings.