BUTTER INDUSTRY ENDANGERED.

Rangitikei Advocate and Manawatu Argus, Volume XXXIV, Issue 9426, 23 April 1909, Page 3

BUTTER INDUSTRY ENDANGERED.

It is asserted in Auckland that an organised attempt is in progress to manipulate the batter market, and in snob a way that the industry would become the preserve of a few speculators, to the disadvantage of the producers of the. Dominion generally. Reports have neen circulated stating that the batter now on the London market is of unsatisfactory quality, containing too great a percentage of moisture. The Star thinks it is most likely that the facts have been exaggerated, and that there is not nearly as much importance attaching to the alleged state of affairs as some would be pleased to have sellers believe. Our Auckland contemporary goes on to say : In any case it is probably a repetition of the policy on a falling market. We have had a succession of particularly good years, and this slump, even if real, is not a bad one after all, compared with the big slumps of some years ago. In any case it is too late to seriously influence the ruling rates upon the market, as practically everything has been sent to England that was not required for local consumption ’and for African . orders. The determining factor as to whether butter will be a little short or not Will be the weather. At present the cold is rather severe for the time of the year, and if we have a cold and otherwise hard winter, no doubt the milk yield will be affected to such an extent that there will be a winter shortage. The fact seems to be that the bears are at work upon the market here, making an attempt to bring the price down, and this is accountable for the amount of talk about slump prices. Speculators are working with a,view of coming in and reaping a later rise. It would appear that a corner is being for, but the speculators and would-be manipulators will probably find that the interests in New Zealand are too widely diffused. It is improbable that there will be any increase in prices this winter; Under exceptionally favourable climatic conditions a slight reduction in prices may come. Last winter a scare was created through a fear being raised that there would be a considerable shortage of butter in Australia. This shortage was only partly realised, and prices receded verv much quicker than ?.was expected. Some years ago there was every indication of an attempt to make a corner in butter, but on that occasion the industry was not adversely affected.