THE BUTTER FAT LEVY

Dominion, Volume 10, Issue 3028, 15 March 1917, Page 8

THE BUTTER FAT LEVY

; IS IT SUFFICIENT?

Some cortwrM has teen expressed lately by persons interested in the dairy produce export business as to how tbo Government's butter-fat levy scheme is going to work out. The levy is collected on all butter-fat sent into factories to provide a fund from which producers who supply the local market at a price fixed by the Government can bo paid the difference between tho local prico and the export .price. Tho rate of "levy at first collected was throe farthings per pound of butter-fat-, the difference between tho fixed local prico of Is.' 7d. per lb. retail and tho export prico being estimated at 3d. per lb. It was suggested at the time the levy was made.that this difference would probably diminish, and that it would in consequence be possible to reduce tho rate* of levy. The reverse has been the case. Indeed, the export prico of butter has shown an upward l tendency ever since thai'time, until now New Zealand butter is worth in London 2245. per cwt. Tt is suggested that the three farthings levy will not provide sufficient money to recoup the producers selling fbr tho local-market for their loss-.of profit,

and that the Government may yet liavn to demand from tho produccis a. heavier levy. The local supply price is to bo rinsed by ono penny per pound during tho winter months of »lnno, July, and! AngUK(., and iliis incronso will go to reduce the difference between the local prico and the jjricc obtainable for butter for export. '