THE BUTTER MARKET.

Taranaki Daily News, 28 December 1920, Page 4

THE BUTTER MARKET.

THE DECLINE AT iIuME PROSPECTS J'OK NEXT YKAIt

Information of importance to dairy f farmers regarding the butter market in England, is contained in the latest weekly trude summary cabled from London and published this morning. The ine.-.sage states: "Untter prices continue steadily downward. The l-'ood Ministry is now pureluibing Danish ut with the previous rate. The .Ministry announces that it will cease buying any butter at'ier March 81, when the Australian and New Zealand contracts terminate. Thenceforward private importations from all sources will be permissable."

WherP* shown this cable by a Daily News reporter last night, Mr. Arthur Morton, chairman of the National Dairy Association, attributed the decline in price to a decreased purchasing power on the jiart of the people at Home. The shortness of money, he said, is worldwide, and is making itself felt in many directions. Mr. Morton pointed out that this pluu-e is noticeable in the case of manufactured goods exported from England, which are declining in price, the manufacturers evidently being willing to make some sacrifice in this direction in order to secure cash. As the N.Z. output of Butter had been sold under contract till March next, the price would not bo affected by any decline in the price received in other countries, Regarding future prospects, Mr. Morton stated that the cheese, meat and wool markets had all experienced a decline, but this had been enhanced by a surplus of supply over "the demand. With regard to butter, however, it. was still in short supply, and although the purchasing power had diminished, the supply was much below the quantity usually consumed, as there had not been so much produced. On the other hand there had never been any decrease in cheese production.

"Wo must look for a decline in price?, and it is evident that we are not going to haiv the same rates as hare been ruling,'' said Mr. Morton, "but of the primary products the one that is still going to keep to the top is butter." The speaker said that those in the industry had anticipated a free market being resumed after March 31' next, hut it was believed that they would still get a fair price for the butter. Jt was not probable that this would be less than half a. crown, and it might even be more.