THE PRICE OF BUTTER.

Otago Witness, Issue 2813, 12 February 1908, Page 9

THE PRICE OF BUTTER.

HIGHER RATES FORETOLD. (Fbou OrH Owx Correspondent.)

AUCKLAND, February 5.

The butter market at Home is becoming more than interesting, and it is unfortunate for Auckland that the long- spell of dry weather is causing such a falling off in the output* of factories, says the Herald. Given last year's output, at prices now ruling at Home, Auckland factories would! be rpaping a harvest such as they have never done before. As it is, factories which have large lines on consignment, and now on the water, will have every cause for congratulation. During last week choicest New Zealand butter averaged 124s per cwt. Then the price rose, and the Tonganro s shipment, to be delivered next week, has already been sold at 126s per cwt, and dealers are now asking 128s per cwt. This price of 128s per cwt represents very close on Is l?d per lb, and. with -utter selling

at that figure in bulk exporters are likely to rush as much on to the London market as they possibly can. For butter sold locally at Is Id the wholesale price is ll<ld; so that it can be readily seen what a fascinating prospect the London market is offering; and in view of that prospect the local market, to draw full supplies, will apparently have to considerably raise the wholesale price here. Several factories have ceased export and are storing for winter supplies ; but the London prices promise to attract every box that can possibly be sent into export, while there is the added fact that supplies are extremely short in the South Island, and it is likely that the south will endeavour to di-aw its winter supplies from Auckland in even greater quantities than it did last winter. Already southern merchants are looking everywhere in Auckland for big- lines of butter, so that, as one merchant said last week, the outlook for the thrifty housewife is gloomy, and the prospect of butter at Is 4d, and even Is 6d, per lb appears to be very much nearer. Against this, however, is the fact that prices arc inducing dairy farmers to go in for ensilage-making and winter dairying, a course that Mr Kinsella. (formerly Chief Dairy Commissioner) strenuously urged in Auckland, where the conditions are 6o eminently adapted for it. There is, indeed, no reason why butter should have to be stored in Auckland for winter use. There should be sufficient late autumn and winter supplies to keep the local market, at anyrate, fully stocked. It is a notable point that, while 128s is being asked for New Zealand butter, the Danish article (usually the top of the market) ie fetching 1275, Australian 1225, Argentine 120s, and Siberian 117s. There has been a falling off in supplies all over the world this 6eason for some reason or other, and shipments from New Zealand and Australia have been short, while Canada, which last season sent enormous quantities, has thie time sent scarcely any butter at all.

February 7. The price of factory butter was raised to-day locally to Is per lb wholesale. Milk has been advanced by the retail dealers from 3id to 4d a quart.