WINTER BUTTER PRICES.

Press, Volume LVII, Issue 17108, 1 April 1921, Page 6

WINTER BUTTER PRICES.

THE NEW RATES.

As a result of the decision arrived at by dairying representatives assembled at Pnlmerston North, grocer* have Jhvu notified that the retail price of butter as from to-day will be Js Gd per V* Tflio Imperial contract and the New Zealand Government subsidy expiied vesterdav, and thenceforth the market, will be "free." The suddcti appli>»tion of the new price has not bop agreeablv received by the trade, which thinks that more notice might have been <nvcn. Whether or r.o'.thP r.c'. price ~ will continue throiignout tl.e winter is dependent entirely on tit" position', taken up by the Government. Winter manufacture of nutter w limitod—it will he remembered that two winters ngo there was n shortage for Dominion requirements, resulting in ipromise bv the Government that* recurrence would be provided against -• and as no doubt every po.uut available has been handed over to the Imperial Government nt the contract- price, the position mav conceivably arise of a shortage, unless the Government has arranged to make adequate winter pre* vision, according to its 1919 promise. It certainly has placed nn embargo on the esport'of butter during tCie winter months, and no doubt it is the official opinion that this will provido a sufficiency until spring manufacture commences. The Government subsidy has been at the rate of Gd per pound on butter supplied to the New Zealand market. fiio producer has received 2s Gd, nnd the consumer Hins naid 2s 3d over the counter, the odd 3d being the amount allowed for handling charges and middlemen * profits. If the producer continued to receive 2s 6U after the withdrawal of the subsidv, the consumer would have to pay at'least 2s Od for the butter Rop're'sontatives of the producers Hi Auckland suggested that the retail pnoo in the future should bo 2s Gd, a price that might bo regarded as n compromise) between the two interest.?, and tin* proposal has been adopted. Although the. producers linvo been promised a free market, that does not mean necessarily tliat they Lave an cn« tiroly free hand. If tho dairy factories and the other dairying interests shouH combine to fix a price for the loca! market that obviously was in advnnco Of tho London parity, tho consumer* might appeal to the anti profiteering tribunals. The producers will Bcureoly bo able to claim a right to charge two prjoes, ono price for export and » higher price for the local market. . Just what "London parity" is lUc«ly to bo cannot bo forecasted Value* oversea* arc at present very "jumpy," In this connexion, sales in New York of Danisli butter at 2s ljd per lb, and Argentine at Is IOJd per lb, "which, wor» reported recently, do > not point to th© present high prices in England being maintained. However, apart from Ihi* phase of tho question, tho winter butler necessities of tho public demand a return that will encourage the producer to divert from summer to winter wilkldg. An unpayable price would produce a prompt drying off of cows, and a consequent probable shortage.

AUCKLAND PBIOBS.

(PRESS ASSOCIATION TtUWRAK.) 1 AUCKLAND, March Si. Tho following statement has been is* sueu by, tho Auckland grown*: It h*» I been decided to fix the margin of proftt for butter at 12J per ceut. fb» cash oW * the counter and 15 per cent, for booking . and delivery, as from April 'lst. Tfcft ' above margins.will got show thb groWT '■■''' any profit, but an actual loss, as twjif working trade expenses are itow fully 20 per cent., brought about by shorter hours and further bonuses and higher wages. This, on a basis of Ss 4td wholesale works out at 12s 8d per lb »• tail for cash across tdio counter, and ft penny extra booked and delivered.

PRICE CONTEOL IN AUSTEAiIA.

(By CaMfr-Press AMociatioiv-Oopyrifhi) (Australian and N.Z. Cablo AwocUtiaft.) MELBOURNE, March 31. A conference of of dairy interests passed a resolution against the control of butter and in favour of an onen market. •»''■ SYDNEY, Mftrch 31. ■ The Hon. J. Dooley told a deputation representing the butter trade that Ho was unable to promiio the abolition of price-fixing.