Butcher has battled body issues for two seasons, but moved well and marked strongly in the club's combined Power/Magpies trial at Alberton.
He kicked two goals in the opening two minutes of the match before repeating the effort after half time.
Efficient Port Adelaide gets season underway
But Hinkley, while pleased with Butcher's finishing ability, tempered expecations by saying Butcher was still a long way from his best.
"It was good that John was able to finish off some of the work of the team and that's important," Hinkley said.
"We know what John offers to us so we need to make sure we get him in the best shape we can for a whole season.
"There's still a long way to go for John, but it's a good start."
Hinkley confirmed Butcher's physical health was superior to that of previous pre-seasons, particularly given he started the club's latest summer campaign with the rest of the team in November.
That compares to his limited 2013 pre-season where he only commenced running during January following a dual hip operation.
"He's significantly better off as far as the conditioning side of things goes, he didn't start running until January last year," said Hinkley.
"He's been right through our pre-season, but I'm not going to be the sort of person who says John Butcher is a player who can do this for us, or that for us, John's still got a little battle with his body.
"We need to be aware of that, understand that and make sure it keeps improving week-to-week.
"We've got to manage him to get his body fit and durable to play, we know he's good but he needs to be durable."
Port Adelaide signed up its 40,000th member at its Family Day and is looking to continue its upward trend ahead of its historic first game at the Adelaide Oval on March 29.
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Port Adelaide takes on the Adelaide Crows in the first NAB Challenge match at Richmond Oval on Sunday 16 February at 4:10pm.
