THE BUTTER PUZZLE.

Manawatu Herald, Volume XXX, Issue 417, 30 July 1908, Page 4

THE BUTTER PUZZLE.

How Much in the Stores? Price Rising. The announcement that the retail price of some brands of butter in Wellington is raised to is 3d will interest those producers whose factories are able to take part in the gains. The nearness to the end of winter, and the lowness of stocks natural to the period are bound to give a little uncertainty to prices. There does not, however, appear to be any solid grounds lor the attempts that are being made in some quarters to arouse a cry of Famine. It is preferable to avoid, as far as possible, the estimates quoted by those in whose hands the Wellington supplies rest, and to calculate the position on the most reliable facts obtainable elsewhere. The quantities in store in the Dominion 0:1 June 30th, as officially recorded, were just over 40,000 boxes. The quantity at the end of the preceding month was 71,479 boxes. During June, 16,663 boxes were exported, so that the rest of the reduction—--14,816 would represent the quantity taken from store to sup--4 lenient the current supplies ter local consumption during the mouth.

On this basis it will appear that the current production of butter, plus the 40,178 boxes in store at the opening of the month, would suffice for two and a half months from that date; that is, till the middle of September. It is difficult to make allowance for the unknown quantities in private stores, but if they are being drawn upon to the same extent as those in public stores, then the calculation as stated stands good. The only other question to be taken into account is the earliness at which the cows will come into profit. Already a number of calves are reported, but, of course, “ one swallow does not make a summer.” Dairy farmers, however, will be able in their own districts to make pretty accurate allowance on that score. It is estimated that at present one-fifth of the butter now going into consumption is current output of the farms. When that output has increased five-fold, therefore, the tensity will end. Apparently there is no case for holding back supplies at present prices, but, rather, every reason for taking advantage of the market while good prices are obtainable. Some allowance must be made for the possibility that interested parties are stirring up a cry of “famine” in order to wring a good price from Southern buyers, who, with stores empty, are now enquiring for supplies. For practically all the stored butter is in the North Island. One point that must not be forgotten is the fact that, at present prices here and in Dondou, no one has any desire to export.—Dominion.