BUTTER SUPPLIES.

Taranaki Daily News, Volume LII, Issue 95, 18 May 1909, Page 4

BUTTER SUPPLIES.

I THE'WINTER OUTLOOK. PRICES HARDENING. Gradually the task of determining , whether there will be much or little • butter available in New Zealand for the ■ needs of the coming winter is becoming i easier, and the verdict is leaning more i and more in favor of a somewhat narrow ; supply. The chief grounds for this ibo- • lief are that the cnd-of-April supplies in , cold storage were altout 28,500 boxes' less f than the quantity in store at the corrc- • spending i daite of last year, and that : although about 20,000 "boxes of last . year's stored butter were exported, tin i quantity retained was still 8300 boxes i more than is now available. Even then th« narrowness of the margin finally caused great anxiety to those rcspoii- . siblc for the local trade. It is recognised . that the current output of .butter at tho ; factories is greater than it was at this : time last year. In fact, those factories i which usually close to half-time at the end of April are keeping Qpen full-time till the end of May. It would appear i probable that the extra output of this | month would make up the deficient 8500 i boxes. But some operators express i doubt on ,thc point, and believe that a deficiency will be shown (after deducting i the 20,000 boxes exported last year) , when the end of May -comes. Although the May'output of this seaBon may be equivalent to an April out- , put of an ordinary season, yet the ad- ! vantage cannot be expected to continue , right through the winter. As one agent said, "You cannot alter Nature," and the cows are bound to go dry very 60on. The June output ,per factory is not expected to be any greater than the outnut of an ordinary June, and there arc further factors that go to support the expectation of at least only a barely sullii-ient winter supply. One of these is that several large factories which made butter Inst season are now making cheese. Some of these with dual plants may perhaps make butter instead when the winter pinch conies, but even they will not lie induced to come to the rescue when prices are already high. Some of these factories which made butter hiVt year and cheese aow. with an estimate of. what .their output in boxes would have been, are the following:— May. June. July. Aug. Joll •• .. 2200 550 27.-) 550 Kaponga .. 400 100 50 100 Riverdale .. 2000 300 250 500 Awatuna ... 400 100 50 100 Kaupokouui .. 2000 300 250 000 Total .. 7000 1750 875 1750 In the secession el these fire factories alone 1375 boxes of butter are lost to the winter suppliers, and -this will not be balanced by the output of butter factories newly opened this season. A further matter of even more interest is the probable cxte-,rt of the South African demand. A large part of South Africa's' supplies is drawn from Sydney, but the f.o.b. price ill Sydney lias increased in the last fortnijlit," till it is now Is per lb. If the Sydney price increases further, the South African demand will swing over to New Zealand, and New Zealand buttwr will either have to go to Africa or have its price locally raised in sympathy with African offers. At the present inomeirt the holders consider the value of New Zealand butter for South African demand is Is lo 1* O'/ld f.o.b. This Is at least a penny abovc prevent vnline; prices. Factory directors are beginning to enlarge their ideas of values, and while some arc selling May-make and stored butter at lid. one factory at least hap -Mused 11.1. and asked liy.d. Very much will dpepend Dicneeforward on the Australian supplies.,and particularly on those of Xew South Wales. It was the sudden Australian, demand at | big prices that finally upset the New I Zealand balance last winter, and the disturbance from the same, quarter this season is beginning • earlier. The Fvflney market is always looked upon a« ;■ very fickle one, however, and. while ir appears at present in be likely to increase New Zealand valnes. it »nav in the end have an entirely opposite effect. Oh the whole, however, factory directors may rest assured,that butter is jirct now a very saleable, commodity.—Dominion.