THE RISE IN BUTTER.

Taranaki Daily News, Volume LI, Issue 43, 10 February 1908, Page 3

THE RISE IN BUTTER.

i DOKS IT FOKKSIUDOW A coLiam:-; saui■; rn^iULE Ili« i li-'v.s oi the uxtra'wiya.nt iih crea <in iiic price of An>>traJa-?i<»ii l»uL- | 1,1 Miu-t 11') l In* regarded with unilloyj f'i -1 !-1 ;1 ;'l ii ill, >a\V S;| Ull'dilv's Duillini'Mi. Tin m' increases are noi of il'<> steady of ich makes it> v;i\ sl:-p by -tep and holds il* uWll. II i- i-i ilii- reckb.-s. bounding order thai >ojii<'t hues precedes a recoil. Jtiilti*r is not an article tliat can stand an increase of 20s" a ewl. in the *pace of a week j wilhout w.vlion. The danivr seem* to threaten from two tjuai iti-- tliat is, assuming liiat the retail price at Home is advancir-; with the whnhvstlo price, which, for vca•■on* stited below, is doubtful. Those danger quarters are. first, deere.is-.cd consumption. re>ultinj>- from economic* in lite households of the HrilUh workmen; and. secondly, a rn*liinj4 in of supplies I'nnn countries to the Loudon

market to >hare the brilliant prices. Probably l«»ii\ cau-es will ojterale tojxeiher. in wliich an eirly suhstanliiil decline mubt happen. None of tlie opinions -n far expressed !>.v tliox\vl»o live in reading the si<4»s of 1 lie market attribute tfie exlraonliuary position to any extensive shortage of the apparent supplies duo from Denmark, Sih<y : a. K»: v >h. <m' Canada, f-o that an early Hooding of the minkel, tempted by the hijrh prices, seems pr<diahle. norsKnoi.n f.coxomux

In regard to tho likelihood of household eeonomies weakening the demand, the people of Wellington, according 1o the Dominion, will not need much assistance to realise how easily that occur. During the past few weeks, since Wellington hutter went up a penny a: pound, most households, judging front common gossip, liwo witnessed retrcnchJ ment.

Gutter ]>ri('cs in London, ajiain, arc' heinfr watched not only bv Xew Zcahind, ; hut by every butter exporter in the world. Theiv nre bound to be strenuf ous efl'orts made by all those near the.' London market to ru-h their supplies to' the <rrent Metropolis, and to convert all mailable butter-fat into lmttcr. , STIMTLATED PnODtXTfON. I

One effect may be that countries which hitherto have not been tempted to enter the butter-producing business, or have entered it in a half-hearted fashion, will notice the high prices obtainable aal liegin to think of their own ability to share the gains. On llie whole there is reason to expect Hint the world-wide advertisement that butter will get from this sensational lightning rise of the Home prices may react on the present fortunate recipients of the high price.-. " Ht'TTKIt-I'AKI.VC. What has probably happened is that the Ilouie trade has discovered, as we pointed out recently, that there igood money to ho made out of the blending business. This is easily apparent from a few simple facts. It all results from the celebrated r.utter liill. which became law on Ist January. That liill declared in'lk-blended butter to be the only legal substitute for butter. Margarine and butter are restricted to a water percentage of I<> per cent., but milk-blended butter may be watered up to 24 pel' cent.

This ditVorenee offer* a IremendeiH tiehl for water-losing; colonial butler anil svllinjr it as milk-l)K'ii(le<l butter. It is in thin connection to take notice of the steady elVovts made by our New Zealand graders to emphasise Uio value of dryness in our butter. Their work has no doubt born fruit so handsomely that the Uritish buyers have* found our butter a more fertile soil for

the practice of their blending craft thin the produce of countries less "dry/'' One

hundred and twelve pounds of New Zealand butter, costing l.Ws, can be watered Or milk-blended up 10 probably 1241b. costing no more, fn other words, 'Jio butter bought at lid may Ik> watered and sold at a projit at Is f> : /jd. Fro.n ihits point of view our industry vortainly reap- a harvest, but the other possibili-

tics foreshadowed may yet follow