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Press, Volume LIII, Issue 15989, 25 August 1917, Page 9

Consumers have I>ecn wondering why butter should have been so much higher in pricc this year than formerly. Tho reason has been tho high price paid by English buyers, the oxport value during tho past season liaving been about Is Sid per lb. The supplies of butter to the Home market have boon restricted by tho absence of shipments from foreign countries, and by tho greater demand for cheese, which has formed an important part of tho rations of tho troops. When one considers tho straits the Central Powers have been in for animal fats, it can bo realised what value fats are to the countries that can obtain them. The price of butter in New Zealand is not only ruled by tho export, value, but also by the standard value of butter-fats, which is mainly established by the value of cheese. Most of the large dairy factories in tho North Island have dual plants, so that they can make either butter or cheese, according to which pays them best. Auckland is the largest butter manufacturing provinco in the Dominion, and Auckland butter is now being sent to the South Island. In Canterbury, tho manufacture of dairy produce is divided between butter and cheese, but _in Ota go and Southland cheese making predominates. Tho various dairy companies in the Dominion are now holding their annual meetings, and the show that the average price that will be netted for butter-fat is about Is 9d per lb, tho cheese factories showing the butter average. Each lib of butterfat contained in milk represents a little over 21b of cheese, and 1001b of butter-fat, will make, on an average, about 1171b of butter. On the present day value of butter-fat, cheap butter cannot be looked for, but under tho scheme by which the Government are proposing to purchase the. next season's output it may be a little less than it was during the past year. Consumers obtained their butter this year at about the export value through the Government making a levy of 3d per lb of butter-fat on all butter and cheese factories, but this method of equalising prices at the expense of the dairyfarmers has been strongly resented throughout the country, and, in any case, such a plan is not likely to be resorted to again.

Mr Agar, manager of the Tni Tnmi Dairy Company, who was ono of the delerra.tes to the conference in Wellington between the Premier and the representative:? of the butter producers, says that the statement that "the producers offeror! to pell the whole of the cominc season's output tr> the Government at Is firl per lb." is innorreet.

Tt is understood from other minrfcers the rfFer was rem pled with certain eorif'itio"s, recarding which those concerned will make no statement for publication.