PRICE OF BUTTER

Dominion, Volume 14, Issue 166, 9 April 1921, Page 8

PRICE OF BUTTER

AUCKLAND PRODUCERS’ VIEWS

NO LONDON SCARCITY FOR

WINTER BUTTER

Mr. W. Goodfellow, representing the powerful Auckland provincial butter producers’ organisation, the New Zealand Co-operative Dairy Company, at. a meeting in Auckland on Wednesday, strongly contested the “export parity” idea, as it affected the price of butter for consumption in New Zealand. Ho referred to recent cablegrams from Wellington, to ' the effect that there had been a great slump in New Zealand but. ter on the London market. To-day’s Loudon price for New Zealand butter, he said, was 2645. a hundredweight. This was a* summer price, and in no way represented the value of New Zealand butter, which was sold almost exclusively during the British winter. London sumiher prices did not have, and never had-in the past, any direct bearing on the April and May local market pt tins time of the year. There was no such thing as London parity for New Zealand winter butter, said Mrlow; everyone conversant with the trade knew that. The reason was that the surplus winter make was not ascertainable till May or - Tun «> nnd lfc in ’ variably exported in August or September The factories had offered to reduce the price to 2s. 21d. ex-factory. When the extra interest, cold storage charges and increased cost of production were calculated, this was equal to a reduction of 331 per cent, to the farmers, compared with the price for the summei m Auckland was now the great province of the Dorn; mon, and owing to its mild climate produced sufficient during April to'supply not only the Auckland Province, but practically all the South Island Ift fl uiremG " bs the .Tune. July, nnd August. Normally the South Island commenced s^ rl "8 hut for the winter trade in January, b this season the Southern factories sold all their output to March 31 to the Imperial Government. During the coming winter, he said, the Auckland Province would be called on to store, hold, and finance large quantities of butter o me t the extra requirements of Bunenin Christchurch, and Wellington In the milk product was yielding a much betteMr.OtGoodfellow emphasised- that the dairy companies already bad voluntarily offered a reduction in price equal to 33 1-3 per cent, to the producers of winter cream. This, he considered, a very large reduction, seeing that all this season’s butter-fat had been produced at the maximum cost. The recent fall in (ho prices of fertilisers seeds and wire would in no way reduce the cost <H production till next season. In the circumstances the demand of tho Government that tho ex-factory price should Inis. Hid. was not only unreasonable, but also unjust, 'and could not be supported by any sound argument.

A LABOUR COMPLAINT

The secretary of the Building Trades Federation (Mr. F. Cornwell) has sent tho Prime Minister the following letter in regard lo» the price of butter; — “1 am directed by the council of the above federation to protest to you against the action of the butler merchants of this country in unwarraiitedly increasing the price of butter to the public. This council considers that the increase is without justification, and respectfully requests you. to issue instructions to the Board of Trade that action be taken agqinst all firms which have been robbing the public during the past week.” The letter is dated April 4.

NEXT WEEK’S CONFERENCE

A conference summoned by the Dominion Butter and Cheese Committee, and attended by representatives of the Government will be held in Wellington next week, to discuss the price of butter for the winter months. Tho views of, the grocers concerning the retail price were put before a meeting nt the Board of Trade yesterday by Mr. JI. D. Bennett (president of Ihe Wellington Master Grocers’ Association). The Director of Agriculture (Dr. C. J. Reakes) was present.

PRICE FIXED IN AUSTRALIA. Sydney, April 8

The Profiteering Court has sanctioned a private butter-pooling scheme to ensure winter supplies, and has fixed the price at 2s. per pound till May 31, when it is understood an increase, not exceeding 3d. will be allowed to cover cost of storage nnd insurance and finance of the butter .in reserve.—l’ress Assn.