CITY MILK SUPPLY

Dominion, Volume 15, Issue 3, 28 September 1921, Page 9

CITY MILK SUPPLY

TWELVE MONTHS’ CONTRACT MADE SLIGHT DECREASE IN COST EXPECTED It was announced by Councillor C. B. Norwood that the Milk Committee of the City Council had secured a twelve months' supply of milk for the city as from September 1. He said that for tho first seven months the price to be paid Would be based on the rate paid for butter-fat-by the factory, within 70 miles of Wellington, securing the best return for its suppliers. During two other periods—one from April 1 to May 15, and the other from August 16 to August 31—there would be an addition of 25 per cent, to the butter-fat rate. The third period covered the winter months, during which time tho council had agreed to purchase milk at the fixed rate of 2s. per gallon, the price paid for winter milk this year. In addition to the butter-fat rates already mentioned, each farmer supplying milk to the city would receive a bonus of 2J per cent, as compensation for tho special work made necessary by tho registration of the farm and for the fact that the milk must bo delivered in Wellington instead of to a near-by factory. Under tho terms of the contract the farmers are bound to supply the full quantity of milk, the greatest variation allowed being 10 per cent. Should there be any failure to maintain the supply the farmer concerned will be liable to a penalty of 7d. per gallon for every gallon short-supplied. It is not possible correctly, to forecast the worth of butter-fat during the approaching season. Suppliers will receive 90 per cent, of the estimated return and tho balance will be held until the final adjustment at the end of the season. It is believed that the basis arranged will mean that Wellington will this year get its milk for a little less than was paid last year. What effect this will have on the price to the consumer remains to be seen; it all depends on the price of butter-fat.