PRICE OF BUTTER
THE PRODUCER'S THREAT
MR. MASSEY TAKES FIRM ATTITUDE
The Prime Minister made a statement on Saturday in reply to the resolution adopted by a meeting of butter lactwy representatives at Palmerston North. Tho resolution was as follows; — That this meeting, representing dairy factories supplying butter to the market of Wellington province, decides (since all efforts have failed to establish an equalisation fund to bring factories supplying the , 'ocal market to the- same level as exporting factories) that our factories withdraw from the local market on February 28 next. "The public need not fear that the locai market will bo deprived of butter," said Mr. Masscy. "I have already been in communication with the producers and the merchants on the subject, and 1 hope that they will make the necessary arrangements without the necessity arising for interference by the Government. But there can be no question of cutting off the supply of butter for the local market or of increasing the retail prico above the maximum already fixed." "The people concerned in the butter industry," added Mr. Massey, "might bo divided into three sections; but leaving out the producers for the tune bein'r, those immediately concerned in the , little difficulty which exists at present are the exporters and those who supply the local market. The exporters have sold their butter to the Imperial Government for the current season—the amount to bo taken by the Imperial Government not to exceed lo.UlXi tons, unless at the option of the latter; and the price has been arranged. "Then there are the people who supply the local market—partly producers r.jid partly middlemen. Up to the present, from the commencement of the season, they have had rather the best of thf deal, to the extent of a halfpenny per pound. But there is a provision in the arrangement with the Imperial authorities that if there happens to be any prolit over the price arranged as between the Food Controller in Great Britain and the New Zealand Government, lialf that profit .will come back to the producers in New Zealf.nd. This, of course, is an uncertain quantity, and I am afraid with what has taken place it will not amount to much. However, the people who supply the local market claim that they aro entitled to share in the profit. The exporters claim, on the other hand, that they aro entitled to share in the prolit which tho local men have made up to date. "llcpi-oscntatives of tho two sections have met, and have been unable to agree. 1 offered to givo effect to any ;;rnnigemonts which miglit be made in that way. No agreement has been come, to.' The people who supply the local market now say that they will withdraw on the '28th of this mouth.
"1 am sorry they should take up such a position, but I want to make it perfectly clear that the local market will not be left bare, and that the prices will be no higher than lire being charged at present."
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Dominion, Volume 11, Issue 129, 18 February 1918, Page 6
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505PRICE OF BUTTER Dominion, Volume 11, Issue 129, 18 February 1918, Page 6
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