The Daily News MONDAY, FEBRUARY 12. THE BUTTER MARKET.

Taranaki Daily News, Volume XLVII, Issue 8046, 12 February 1906, Page 2

The Daily News MONDAY, FEBRUARY 12. THE BUTTER MARKET.

No one district in the colony is more deeply interested in the movements of the butter market than Tararaki province, and it would naturally have been expected that the great " co'lapse" recorded last week won'..! have had a most depressing effect on the whole provincial community. Strange as it may seem, however, there has not been the slightest sign of apprehension or concern apparent. As a matter of fact the butter people of the province were quite prepared for n considerable easing-ofl' in the market, and while it was anticipated that the full would he more gradual, the news at, the worst, was only received with disappointment. Anticipations in many quarters had been based too high, in consequence of the well-sustained prices during the first three or four months of the season. Those people failed to realise that the sustained inflation of the market was due to altogether exceptional, but quite evident, causes, and that immediately they were removed, the inevitable must happen. * » » »

As pointed out in an article on Saturday, there was an unprec: 'lented* dearth of high-grade butters on the l.oudou market right up to theeiulof January, due to the fact that. Continental supplies were abnormally low. the medium shipment; of Colonial practically having the market to itself. Until the Colonial season was well advanced, not even the shrewdest sellers anticipate J these circumstances. as is borne out by the fact that practically only tlios-j factories whitfh almost invariably hold oil' as long us possible before quitting, did not sell at prices little (if anything) in advance of the average return for the previous year. The fact that a considerably greater number than j usual of the factories decided tu consign this year was due principally to a growing confidence of factory directors in the stability of the market, lather than to any particular information leading them to expect an exceptional season. Home of the larger factories, like InglewooJ and Elthaiu, held otl' long enough to enable them to make reasonably sure that prices were to be, for a time fit any rate, abnormally high, but these cases were exceptional, and due to the fact that they were engaged in playing a waiting game with a host of buyers, whom they were playing off one against the other.

While these protracted negotiations were under way, came the information that finally decided these, an.', a few other companies that had not disposed of their output, to take the risk of the market. This is pointed out merely to sho.v that T.irauaki, at the beginning of the season, did not

anticipate any exceptional returns, and financial niTaiigeinents generally were based oil the experience of moderate years. 11 is also recognised that the present price is a high one, af fording a very good margin of profit, I ami even if the market should further recede a few points, there is nothing to fear, as tlio average for the season would still be on a par with the best of recent years. So far as can be judged, those factories that consigned will still show better results than those that sold outright, and reasonably, nothing better wa< anticipated. Under the circumstances there was nothing in the High CouimisMOner's advice to warrant the scare created in some circles. * * * * Wj-; have been asked by many wouldbe authorities to believe that but for the presence of " faked " butter on the Home market, price ; would not have receded. While, of course, it is manifestly impossible, at this dis tanee, to correctly gauge the effect of this product on the market, we are inclined to think that far too much importance has attached to it. As pointed out iu Saturday's issue, it is questionable whether New Zealand has not actually g.ti ned this year by the existence of these " faking " establishments. Large quantities of lirst-grade Colonial butters have been secured by manipulators, and without doubt this new market was one of the prime factors in depleting the open market and forcing prices up. It is reasonable to assume that this manipulated butter has been on the market for the past three months, and yet prices were in no way alleeted by it. It is far more likely that largo Colonial arrivals, tlio opening of the Continental season, and large unloading* of Amercati having satisfied the demands' ■were the main contributing factors in normalising the market

Although it will probably be found that faked butter lias not, up to the present, prejudicially atleeted the market to the extent some would have us believe, it would, nevertheless, be unwise to minimise the danger, if the practice is permitted to assume larger dimensions. It is therefore re-assuring to find that liie responsible department in the Home (loverinnent is alive to the evil, and steps are to be taken with a view to introducing a new Butter Bill, The passing of this measure would effectively suppress not only British and Danish faked butters, but also the "process" butter from America, large quantities of which are being unloaded on the English market ✓at the present time. Colonial, and especially New Zealand butter, would be the principal gainers under the operations uf the Butter Dill, for the passing uF which every elVort should be made.

Takjxi, everything into consideration therefore, not only should the returns for this season be well ahead of the average, hut indie it ions point to future seasons being, under ordinary circumstances, particularly remuneration. As mentioned above, the passing of a Butter Bill in the Home Parliament will effectively remove any lisk of our butter sniveling through the operations of the butter faker. Of even greater moment, however, is that indications point to American competition very I

shortly becoming quite ft thing o the past. The latest advices fron the United States give prominenc to the number of districts in whiel butter and cheese manufacture i being dropped, on account of tlr establishment of condensed mill factories, and the demand for mill for the large [cities. Whole countie that three years ago were utilising the whole of the milk production ii the manufacture of butter am cheese, have been transformed int dairies for the towns. Huge mill trains now daily ply over the railroad in all directions, ar.d to such an exten has the new industry affected th trade, that, numbers of cheese am butter dealers all over the States ar going out of business. There an other and more far-reaching cause that seem to indicate that America as a dairy produce competitor, ueei cause.no apprehension. The faru labor <|tiestion is becoming a ver; serious affair, and numbers of dairy men all through the country havi had to reduce [their herds owing to the fact that they cannot got anyoin to milk them. The Canadian North west is opening up, and every avail iible man that knows anything at al about farming is securing a farm fo himself, and the wheat trade in tin North-west has become so gigantic that every person is raising whea ind letting the daily business go lr lefault. As showing the seriousnes )f the labor problem, farms in Nev Vork St ate to-day can be bought a 66 an acre, that ten years ago couh lot find a seller at .£2O. Writinj » MncEwan find Co., from Ingersol m IX ember 18th, Mr J 13. Mac Laren emphasises the growing aver >ion of farmers sons for farm lif ■hroughout the States, and says tli< ;ame thing applies all over Westen Janada. "The more education tin •minger generation get," he says 'the less inclination they have t( ann, and it will no doubt to .-eveiu •ears before they realiso that the arm is about the best asset that .nyotie can have." Summing up, he ays "ft looks to me as though the upply of milk for a couple of years o come will not be snllicient to upply the wauls of the public, and his being the case, dairy products ■uist no :essarily remain high."