MILK PRICES

Dominion, Volume 11, Issue 54, 27 November 1917, Page 9

MILK PRICES

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LONDON'S EXPERIENCE

A PARALLEL FOR WELLINGTON

. Wellington people, who pay unwillMgly sd. a quart for milk that is not always new or even pure, may find some consolation in a report presented to the • House of Commons by a committee which undertook an investigation of London's milk supply. The report shows that in Englandj as well as in New Zealand,' tho war has increased the cost of production on the dairy farms, and that there is a further parallel in the high cost of distribution. It appears that London, like Wellington, is threatened with an actual shortage of milk owing to the shortage of labour on tho farms and the competition of the cheese factories. The report states that thirty or forty years ago sd. a quart was the customary price for milk in London. In periods of depression farmers were compelled to accept. reduced prices for their milk, but combination among the producers and tho revival of agriculture "secured better prices from the wholesale buyers, and supply has not increased relatively to the demand." Moreover, high meat priccs have often mads it profitable to reduce daisy herds by slaughtering, and this has applied particularly .to wartime. "There can bo no doubt that an actual increase in demand, and increased cost of have been the main factors in increasing prices," says;the report. "Tho increased demand of tho producers of margarine, tinned milk and milk chocolate, has , helped to force up prices. The increased price of. cheese has had a similar effect. The increased cost of production is also a considerable factor. . . . The latest reports show that for sheer lank of'milkers a considerable number of farmers are even now reducing their herds. . . . •What is generally certain is that the gains , made through high war prices have gone chiefly lo the primary producers."

The report adds' that distribution forms the largest item in the price after the millc leaves tho farmer. "It hardly appears that tho chargo for town distribution is exorbitant, the process there consisting in a multitude of small deliveries. Under present conditions the average cost of cfelivery in London must apparently be reckoned at not less than 6d. per gallon, and dairymen contend that it is considerably more. ... It has been reckoned that London dairymen could still afford to sell at Id. the quart less over the counter, than is charged for milk delivered to tho customer. But by far tho greater amount of milk is sold by delivery; and excopt in tho poorer districts there is no likelihood that, in general, customers enough to mako a business pay would oensent to go for, or send for, their milk in tho early mornjng." London's milk problem ap* poars to bear a close resemblance to AVellington's milk problem. '