PRICE OF BUTTER

Dominion, Volume 14, Issue 220, 11 June 1921, Page 8

PRICE OF BUTTER

“ INACCURATE NOTIONS AND PREJUDICES” DAIRY ASSOCIATION IN REPLY CASE AGAINST FURTHER REDUCTION Various assertions and assumptions respecting butter were dealt with by the. secretary of the National Dairy Association (Mr. T. C. Brash) in an interview with a representative yesterday. Very misleading remarks had been made, ho said, by city politicians and other commentators about "subsidy” and “parity price” hi. iho butter business. Time after time the truth bad been published, but certain politicians and others preferred to stick to their own inaccurate notions and prejudices. Situation Reviewed. “To begin at tho beginning of the present position of butter, it is necessary to go back to the time of (he Imperial Government’s purchase, which ended nt March 31 last. It was definitely understood that the Imperial Government was to take the whole of the available surplus of the summer production. Tho dairying industry naturally strove for a maximum of export nt tho price of 2s fid. f.o.b. When the question of supplies for the local market during winter arose, an assurance was given that sufficient autumn and winter butter could be made for the local market. This production has been going on since April 1. but. of course, the cost is much higher than it was for the summer make. Prior to this year the price of butter has been always higher in winter than . in summer. This winter the producers are receiving 4d. less than they got in summer. The price of bulk butter at the factorv door now Is. Hid., which is increased to 2s. lid. by the 'subsidy’ of 2d. per lb. There is an impression that the 'subsidy’ is practically a bonus to the butter producers. Actually it is a bonus to the consumers o.t the cost of the general taxpayers. The retail would hare been 2s. sd„ but has been kept at 29. 3d. under an arrangement by whilli the Government pajw 2d. of the price that the consumer should be paying, and a removal of the so-called 'subsidy' would moan that the full retail price would be 2s. sd. “Sheer Nonsense. ” "The huge industrial trouble in England, by seriously curtailing tho purchasing power of the public, has naturally affected the prico of butter, but oven with that severe depression the retail price of New Zealand butter in England is at least 2s. Ild. to-day (summer price). In pre-war years there has been a. wider margin between the winter retail price in New Zealand and tho summer price in England. People who are crying ‘parity’ at the butter producer to-day ere talking sheer nonsense which the least thought should enable thorn to see clearly. They overlook the huge fact that when it is summer in New Zealand it is winter in England. When winter checks the production of butter in. the northern hemisphere New. Zealand has a splendid opening for trade. When production is at its greatest volume here, the price is at its highest point in England and other countries of the northern hemisphere.. With these high prices available for export the producers who supply tho local market expect naturally to be in a position \>f parity with exporters. A parity price is then necessary as an obvious act of justice. When iho seasons are reversed—when production** is nt its greatest volume during summer in the northern hemisphere—it is not a question of 'export parity’ in Now Zealand for wintqr butter on the local market, because export has ceased, yet the .difference between the summer and winter conditions of trade is persistently and foolishly ignored by the daily-, man’s critics. “Why Should He Get Still Less?” “It is a fact beyond dispute that the dairyman has been the last of tho producers to get anything like a fair deal. Me is admittedly the hardest worker, but it has only been in recent years that the return from his labour and selfdenial has been worth, while. He is now getting 4d. per lb. less than for the summer make. Why should ho get still less? What good could bo done to the community by injustice to the butter producer? It is well known that the sudden falls in wool and meat are causing unemployment in town and country. Why try to increase tho unemployment? At is acknowledged that the dairying industry has practically saved New Zealand from calamity this year. * Why, then, malign the dairyman? Has he not done well for the community? Does ho not deserve sume gratitude? "Meanwhile the price received by the producer has been/ definitely fixed, by signed contract, with tho Government till August 31. .After that tho producers .will hove a free market. If they had been or. a free market during the term of the two years’ contract with the Imperial Government, which expired on July 31, 1320, they would have been receiving 2s. 9d. per lb. before the end of tnat period instead of tho Is. 7jdpaid by tin Imperial Government. During each of those two years the Imperial Government cleared a profit of about .£2.000,000 on New Zealand butter, and about £2.000.000 on New Zealand cheese, a total of about £8.000,000 for the two years. This New Zealand butter was allowed to be retailed on the British market at 3s. 4d. per lb.”