The Gisborne Times (PUBLISHED EVERY MORNING. TUESDAY, APRIL 21, 1903. THE BUTTER TRADE.

Gisborne Times, Volume XXVI, Issue 2170, 21 April 1908, Page 2

The Gisborne Times (PUBLISHED EVERY MORNING. TUESDAY, APRIL 21, 1903. THE BUTTER TRADE.

Recent mail advices from London bring particulars of tho extraordinary fluctuations exhibited in the butter trade in the Old Country in February. It will be remembered that New Zealand shipments arriving during that month realised exceptional prices, tho market being topped at 150 s per cwt. This figure was, of course, much too high to bo looked upon as likely to rule permanently, and sure enough, prices cam© down almost as rapidly as they had risen. The situation was quite unique in the history tof tho United Kingdom’s butter trade and under the circumstances tho following interesting review taken from Messro ."Waddell and Co’s market report, dated London, Feb. 28. makes excellent reading.

Great ns was tho excitement over the sudden rise in tlio price for Australian and New Zealand butter a month ago, it is far surpassed b.v the consternation caused by tho collapse this week. In tho history of tho Colonial butter trade there was never a time when buyers absented themselves from Tooley Street as they aro doing this Week. A panic of largo proportions prevails, and it will be a few days before the ordinary routine of business is resumed. A considerable amount of misunderstanding exists generally over tho cause of tho recent rise, but readers of this report liavo had all the materials laid before them during tho three months preceding the rise to fully expect such an event, owing to the immense shortage in arrivals of colonial butter for the three months ended January, 1908, compared with the same period twelve months ago. The price of colonial butter for the eleven weeks, from the middle of November last up to tho very end of January, remained at a level of 120 s per cwt., though all the time tho weekly arrivals were showing an increased deficiency compared with those of last year,and the shortage accumulated until, at the end of January it had reached tho enormous amount of 5,716 toils. Tho shortage in November was 19,151 cwts., in December 41,265 cwts., and in January 53,898 cwts. Under such conditions no surprise need be expressed, especially as the total arrivals of all kinds of butter for the three months, according to the Board of Trade returns, were 6,647 tons below tlie same month last year. It must not be overlooked, too, that tho increase of imports for the last ten years averages 670 tons a month, so that tho shortage compared with last year was 8,660 tons for these three months. The trade, however, ignored the statistical position which we persistently brought before them and have suffered in consequence. They liavo had a splendid lesson in tho fallacy that you can make figures prove anything. When these statistical facts met the trade face to face at tho end of January, then a panic of extreme proportions occurred and buyers lost their jieads. Had the shortage been taken auto consideration sooner, a gradual rim in price to about 130 s would have taken place, and there would have been iio panic. As soon as the upward panic spent itself, then sellers became infected and completely lost their heads, and are now going about virtually offering tlieir butter at any price tlie buyer will give. From selling Australian and New Zealand last week at 150 s per cwt., they have decended to offering at 3.10 s and 116 s today, a fall of 37s per cud,, in a week! The present danger is that the trade should still overlook the very fact that brought about tho very crisis. The shortage of supplies still continues, and will continue. For February up to date, the deficiency in colonial arrivals is 2,734 tons below the same period last February, and in March there will be a deficiency of about 3 >3OO tons. The high prices of tho last few weeks have drawn increased supplies from tlie Continent and from America, but tho collapse will stop tliis movement and it will kill tho boom in margarine. In <J;iieensland, good raius liavo fallen on tlie Darling Downs, and in New South Wales similar rains have occurred in the dairying districts- The effect will be about the same as rains in this country at tlie end ; of September. The shipment from Australia this, week consists of 20,000 bp-xeg in tho Orontes.

The Copenhagen official quotation yesterday made a record fall of 18 kroner, which was rendered absolutely necessary by the weakness ;of the Committee’s previous action during the past crisis. They were badly advised from this country, and did not raise the quotation enough at the commencement of the crisis, and last week thev should have lowered it at least another 5 kroner instead of raising it by one. The losses in the Danish trade iu consequence of tlio committee’s action must be very heavy. From the above it will be seen that a new light is placed upon the fact that New Zealand butter temporarily topped the market, being quoted at a higher rate than Danish, It now ap-

pears that tho committee which fixes the weekly prico of Danish butter did not realise tho intensity of the crisis that was occuriug, with tho result that the butter from Denmark was Tor a short period sold at a. lower prico than it cOuld have commanded. Still, whatever tho reason, thevo is ample room for satisfaction in tho fact that on one occasion at least tho New Zealand product beat all .rivals, and that although the boom quickly collapsed prices have, remained at a figure that should ho eminently satisfactory to the dairymen ol this country.