BUTTER PRICES.

Press, Volume LXVI, Issue 20093, 24 November 1930, Page 12

BUTTER PRICES.

SCHEME FOR STABILISATION. ••SUGGESTED I'ATERSON PLAN." A scbomo designed to secure ior the 'Zairy-farmer a price for his butter sold in New Zealand, based on Nov.- Zealand standards, was propounded byMrA.J. Sinclair, secretary-manager or the ie ■Vivamutu Co-operative Dairy Company, on Thursday, at a conference of direcinr, IS companies connected the South Auckland Dairy Companies Association. . . Mr Sinclair said the price rescued i\ dairv companies for butter sold in New Zealand was based somewhat loosely on the f.o.b. parity of export butter, tor instance, if the London price ot u<l butter was equivalent to Is a pound f.0.b., Auckland, tho price charged by dairv companies to retailers would be Ie .lid," the extra lid being charged _ to cover the cost of patting and distribution. The retailers' usual profit was twopence a pound, although S'inie rers satisfied with a penny. An Indefensible Practice. .Mr Sinclair contended that tbe practice of basing the local price or. tho t'.o.b. parity was indefensible, but, to lack of cohesion among dairy companies, an attempt to increase the local price to any appreciable estent above the f.o.b. parity caused factories with no standing connexion in the local trade to flood the market with buttar, ;5o that the price speedily reverted to its former level. If there were no exportable surplus of butter—it was estimated the local consumption varied from 12 to 15 per cent, of the total production—and the farmer produced only sufficient butter to sstiir'y Now Zealand requirements, Mr Sinclair said there would be no difficulty in securing a fair Ngw Zealand price, based on tho New Zealand standard of living. Under present conditions, tho farmer was asked to take for butter fold locally twopence less than the eame product realised in the world's cheapest market in competition with countries where the standards of wages and living conditions generally were on u. much lower level.

Enquiry by Department. Outlining his scheme for stabilising the selling price in New Zealand, Mr Sinclair said the first step would undoubtedly be an enquiry by the Department l of Industries and Commerce, which already had the necessary statutory power. Evidence would be tendered by all sections of the producers and consumers to enable the Department to determine a fair r.nd reasonable price l'or butter sold in New Zealand, based on New Zealand standards and prospective of the f.o.b. parity. In the course of its investigations the DepartTnent would enquire into two other problems, namely, whether a profit of twopence a pound was fair and reasonable us a charge by a retailer on a commodity with so rapid a turnover, and what would constitute a fair and reasonable allowance for the patting and distribution of bulk batter. ■\Vith these points determined, a New Zealand butter stabilisation committee ' would be set up to function on lines similar to those of the Australian stabilisation committee. The most suitablo body to administer the scheme would j be a sub-committee of the Dairy Pro- ! duce Board, the powers of which would require to be enlarged by legislation. The committee would have power to ■fix the retailers' margin of profit, and the allowances to &j.iry companies for patting and distribution. The members wduld meet in the first week of each mbnth to determine tho f.o.b. par- ' ity for the previous month on the basis of the High Commissioner's cablen, and dairy companies would be notified of the amount of levy to be paid on the 15th of each month into a butter stabilisation account.' Any improvement in tho ex-port parity would automatically mean a reduction in tho amount of the monthly levy. Bounty at End of tho Season. Illustrating how the scheme would operate, Mr Sinclair assumed that tho export parity of butter one month was lid a pound, that the cost of patting and distribution had been fixed at 1-Jd a pound; that the ret. 11 prico to the public had been fixed at Is 6d j a pound; ' and the wholesale price at la 5d a pound. Dairy companies supplying the local market would collect Is" od a pound from the retailer; they would retain Is Ojd, and the balance of 4vd would be paid in on the 15th day oi* each month to the stabilisation account. At the end of each season a practice similar to that in Australia would be adopted, and the amount at the credit of the stabilisation account would be distributed aa a bounty to every butter-making company in New Zealand in proportion to the quantity of butter made. The scheme would be inexpensive to operate, and, under the conditions obtaining at present, would bring in an additional revenue to the butter producer of approximately £ooo,ooo a year without inflicting hardship on an*/ section of the community. "If the people of New Zealand deny the dairy-farmer a fair New Zealand price for butter sold in New Zealand," concluded Mr Sinclair, "then the dairyman '-s a goo 3 case for demanding an all-round reduction in wages."

The scheme was discussed in detail by the meeting. A- resolution was passed recommending it to the meeting of dairy factory representatives and farmers to be held in Matamata the next day, as a bdisis for favourable discussion.

! IRISH FREE STATE | TARIFF. | i' 3 PER " HUNDREDWEIGHT. J (Received K ovember Krd,.. 0.0 p.m.) . . DUBLTIs, Korember 22. ' r fhe DaLl Eireann has agreed to a duty of &5 per hundredweight on imported butter; It is intended to bo . prohibitive. | RENTS DOWN IN SYDNEY. £ <p£.oil 'oua COS3E3i>OS»ESa*. ' j SYDNEY, November 'l:2. | Jleductions in rents in general in the I, metropolitan area, of Sydney, and parj tictilarly in the, central shopping area, I are averaging about 25 per cent. With j the prevailing' depretaion many of the biglaftdlOrds have befen obliged to come j t6 : terrtis with their tenants—either that or. loso them -and have their • places 1 empty "with no immediate prospect of re-filling them. ! Reduction of .rents, however, has not [ shaken th 6 confidence of real estate ownfers and agents in the Old- | established, firmsi believe, in fact, that ! the revision ■of l irent levels, however i pain'ful it might be temporarily for landlords, is a firelude to a healthier toie in the iha*ket, and that, with a renewal, of .Confidence, rents ami property prices will ea'tibliih themselves on a sounder basis.' This at. least was the view , ,b<sf OrG ;th6 Federal Government announced its liew property' t&s. Pei'haps the lat46t thdibjing impost will serve to modify it Eoraawhat-.

merchandising products o: good Quality can develop tfc6 uiv paralleled «a)«s opportcriittes in Canterbury rtiost 6fioetively and most economically through the advertising colu~-i£' ot* TB3» Psjtsa —*