28 Agricultural Journal of Victoria. 



to tlie strengtli of their opponent, and adopt every means possible to 

 retain the trade and maintain the high reputation of their produce. 



A considerable quantity of the butter received during the last few 

 months in execution of Victorian orders has been New Zealand made, 

 the boxes being so branded. This is not good for Victoria, and I have 

 been told that " if it is good enough for your exporters to fill my 

 orders from New Zealand, it is good enough for me to go there direct 

 for my requirements." I fear that my explanation that it was only under 

 very exceptional circumstances, such as then prevailed, that such a 

 course was necessary, failed to convince the gentleman spoken to that 

 he should continue in the same groove for his requirements. 



The conditions and fluctuations of the Australian butter market 

 are very closely followed here by those engaged in the trade, and they 

 have not failed to notice that recently considerable quantities have 

 been stored " for a rise " during the autumn and winter months. For 

 this to be a successful move necessitates the condition that there are 

 no other competitors capable of keeping the price down, and I am not 

 sure that such a condition now exists. It may have been successful in 

 the past, but then Argentine was not competing on the extensive 

 scale that she is now, and if she can continue to supply the African 

 market with the quantities I am told she is capable of supplying, it 

 would appear to be a mistake for our exporters to store too much or 

 too long, and it is desirable they should watch closely how it is likely 

 to affect them. 



Argentine Butter. 



During the course of my enquiries amongst the merchants here 

 and in Durban and elsewhere, I find that many of them are importing 

 Argentine butter, and speak very highly of it. The retailers also 

 regard it favorably, and I have not met with any instance of a 

 complaint having been made. 



The readiness of the local importers to adopt this Argentine butter 

 is due mainly in the first place to its being placed on the market at a 

 time when Australian supplies were short, and prices high, and having 

 gained the entree to the trade because of their lower prices, they have, 

 by supplying a uniformly good article, succeeded in establishing a 

 reputation for quality and value that cannot fail, if maintained, to 

 mean the rapid growth of their trade. 



I learn from those who have been to the Argentine and know the 

 conditions of the dairying industry there, that the continuity of supplies 

 is assured, and that preparations are being made for next season that 

 will make them very formidable competitors indeed. 



One large firm here informed me that the agents of several 

 Australian firms had intimated to them that butter would be very dear 

 later on. To protect themselves against this anticipated rise they took 

 advantage of the prevailing low price in Argentina and placed a 

 contract for six months' supplies at 10|d. f.o.b. Buenos Ayres, and I 



