THE PRICE OF BUTTER

Evening Post, Volume CXV, Issue 149, 27 June 1933, Page 6

THE PRICE OF BUTTER

Thft National Dairy Conference has accepted a draft scheme for the application' of what is termed the Sinclair plan to the sale of butter on the local market. At present butter is told here at prices generally governed by London parity* The author of the Sinclair plan has argued that New Zealand should pay more because the butter is received fresh—that its real value to the local consumer is equal, say, to the price the British consumer is prepared to pay for Danish. This would deprive the consumer of the small advantage that he receives from living in a butter-producing country. The weakness of the argument is shown by the fact that the scheme cannot be put into operation,without elaborate con-

trol machinery. It is not so fair and equitable that it can be supported by the usual trading methods. There must be a monopoly trust organisation to prevent competition from determining the true level of prices, so that an artificial level may be fixed. A central organisation is proposed to determine,. among other tilings, the wholesale price of butter in the Dominion, the amount dairy companies must charge for patting and distributing, and the amount any agent may receive for these services. Such powers could not be exercised without legislation which would be directly opposed to the Government policy of refusing authority to fix minimum prices. ' Unless it is desired to fix local prices above export parity there is no need for such powers, for a dairy company which sells its butler at less than it can obtain by exporting it has surely no claim for protection against its own foolishness. If, on the other hand, the intention is to fix prices above export parity—to make the local consumer subsidise export —the dairy farmers will arouse public resentment It is gratifying that the decision has called forth a strong protest from a representative of the South Island producers.