PRICE OF BUTTER

Dominion, Volume 8, Issue 2446, 27 April 1915, Page 6

PRICE OF BUTTER

AND THE EXPORT,OF CHEESE

THE TWO INTERDEPENDENTS

STATEMENT BY -PRIME MINISTER.

The Prime Minister, in reply' to inquiries on the subject by a Dominion reporter yesterday, made a statement subject of the price of butter. "I don't, intend to anticipate any evidence that may be submitted to the Commission," said Mr. Massey, "but I may point out that the increase in tlie price of butter about which many suggestions have been -made is not so easily dealt with as many people imagine. The reasons for tlie increase are the price of cheese which is in very strong demand for Army purposes, and alonj; with that the drought in Australia, which has caused a very unusual demand from the Commonwealth. The suggestion has been made that the Governmeut 1 ' should prohibit the export of butter.' This would he an. extreme step, though we find it necessary in the case of wheat and oats, but jny experts tell me that at present: prices, the making of cheese, pays the pro-' ducer better than the making cf butter, and we. certainly cannot stop. the export of cheese, because more is wanted for the Army than we are able to supply, so that so far as the /Wholesale prices are concerned the price of the one article will to a certain extent govern the price audi output of the other.

"I am not expressing" any opinion about the retail price; (this is a matter for the Commission, and I have no doubt but that it will be thoroughly looked into. There is another point.to be remembered about the production of butter; the good autumn Tains that we have* experienced in the North Island and consequent growth will enable the butter factories to be kept running longer than usual, and, I am told, that -in some, districts arrangements are being, made to keep going for,three days each week right through the winter, Thoexport to England has practically ceas--6a for the season, and as a*.matter of faxjfc there is some talk of butter being returned to New. Zealand, though I hardly think this is likely, but my opinm that unless Australia removes the duty on butter at Commonwealth ports the present retail prices in New Zealand will not last long." '• ADVANCE IN DTJNEDIN. (By Telegraph.—Press Association.) ; Dimedln, April 26. . Butter advanced another ; penny today. The retail price is now' Is. 6d. i THE SHORTAGE IN SYDNEY. (By ] -.p. - •• v —Copyright.) (Rec. April 26, 10.15 p.m.)

• Sydney, April 26. The butter factories are asking the Commodities Commission to increase the of butter 3d. per pound in view of the'anticipated serious shortage.