FARM AND DAIRY.

Taranaki Daily News, Volume LII, Issue 97, 21 May 1909, Page 4

FARM AND DAIRY.

PRESENT BUTTER PROSPECTS. STRONG POSITION OF HOLDERS. EFFECT OF THE CHEESE BOOM. During tlwpast week there has been no falling back in the excellence of the winter outlook for butter from the producer's standpoint. If anything, the position of butter-holders has strengthened. The dry weather that is curtail.ing the output in New South Wales continues, and prices there have slightly increased. Sellers of butler in Sydney are asking 110s per cwt, and are repurchasing from Melbourne cold stores supplies which they had lately sold to Melbourne agents. The higher rate now ruling in Sydney is at a point where a diversion of South African orders to New Zealand might be effected. The Sydney ' value of butter f.o.b. for South Africa is now practically W/ S A per pound. To I secure this South African trade the New Zealand quotation would need to be not higher than 12d f.o.b. ill New Zealand, or its equivalent of 12'/ 2 f.o.b. Sydney. This is a halfpenny per pound more than the quotation (liy 2 d) now ruling between agent a-nd grocer in New Zealand for patted butter. But agents expect a halfpenny per pound for the patting of this butter, so that the net bulk value for the New Zealand trade is thus onlylid. This is therefore one penny per pound less than the value f.o.b. for South Africa. At present there is no sign of any diversion of the African trade from Sydney, but on the figures stated that result jhight reasonaibly be expected. The effect on the local market should then ne a rise of a penny per' pound. Mcaniinie, however, better weather in Australia may alter the outlook. The prospect of the New Zealand winter output being only moderate is unchanged. One of the large, cheese factories which recently invited offers for its May and June output of either butter or cheese decided, on the replies received, to make cheese only. Probably other cheese factories will have made' similar decisions, and the. butter available this winter wit' be reduced accordingly. The unusual preference for cheese-inakiii" this winter is due to the singular manlier in which pi-ices for that article are being maintained and even improved in England, in spite of the fall in butter. There is a 'shortage in the Canadian cheese output, and the recent expectation Of a fall has now changed to one of a further increase. The cheese industry is certainly having a fine run.-Do-minion.