BUTTER MENACED

Bay of Plenty Beacon, Volume 11, Issue 84, 24 September 1947, Page 4

BUTTER MENACED

MARGARINE’S THREAT HIGH QUALITY PRODUCT Margarine* was a menace to butter on the United Kingdom market, said Mr W. N. Perry, Dominion President of Federated Farmers, on his return from overseas. Unless the price of butter was kept within a reasonable limit to that of margarine, the latter would eventually secure the greater part of the market. At present butter sold in Britain at the subsidised price of -Is 6d per lb and margine sold at 9d and 5d per lb., depending on grade. If those consumer subsidies were removed butter would rise to 2s 3fd per lb. and margarine only to Is lid. Margarine quality was excellent and its production was mainly controlled by one of Britain’s largest companies with thousands of retail shops receiving fresh supplies daily. Mr Perry said he was afraid that New Zealand was building up such a high internal cost structure that she would not be able to compete with margarine when conditions again became normal. Present shortages and subsidies protected butter but once they were removed, consumption of butter would certainly decrease if the price remained high.