MARKED INCREASE IN MILK SALES

Dominion, Volume 37, Issue 192, 12 May 1944, Page 4

MARKED INCREASE IN MILK SALES

Wellington Department

A phenomenal increase in milk sales was recorded in the milk department report for 1943-44, presented to the Wellington City Council on Wednesday by .Or. M. Fraser. The increase was nearly 17 per cent., or 650,731 gallons, that on top of the previous year’s increase of 766,000 gallons. Net profit was £16,285, sufficient to meet the inevitable w’inter trading loss under the council’s equalization system. For the first time the revenue exceeded £500,000. The cost to the consumer was lower than in any other period of the wnc.

It was unfortunate, stated the report, that the department should have to present annual accounts for the rear ended March 31. The agreement with producers w-s for the period ended September. Consequently the year to March was subject to two agreements—the expiring one for the first half (winter) and the new one for the second half (the profitable summer period). Thus, the effect of any altered conditions in the new agreement which increased the department’s costs was not seen in the accounts till ’after the witner period. Hitherto the practice had been to meet such increased costs by extending the winter retail price into summer long enough to wipe out the winter loss. The result was that the accounts to March always showed a profit. This tended to prejudice the department in two ways: First, it created the impression with consumers that they should get cheaper milk; secondly, it created a desire with producers to demand higher prices. The council’s good policy, of stabilizing prices to consumers throughout the year did not mean winter trading losses could be avoided. Winter milk cost the council fid. a gallon more than in summer, but it charged the consumer only 2d. more in winter than in summer. The actual loss to the department on winter milk was 31d. to 4d. a gallon. High quality had been maintained, almost 99 per cent, finest grade milk with 4.53 per cent, butterfat content against the Health irtment’s standard of 3.25 per cent. It was the silver jubilee of the department's existence, and the results achieved were in no small measure due to the zeal, loyalty and co-operation of every section of the staff.