FUTURE PRICE OF BUTTER.

Hokitika Guardian, 28 September 1920, Page 3

FUTURE PRICE OF BUTTER.

“The position regarding the future price of butter to the consumer is still ' stated the manager of one of the largest export produce firms to a “New Zealand Times” reporter. ‘lt nil depends on what the Government decide to do. The dairy farmer naturally wants the full"market price for his produce, and it cannot be denied t.iat he) is entitled to ge it. As is generally known, the Government subsidised the sfcdairy farmor in order that he would' not W\ )fl a loser on market values, and also that the consumer might purchase butter at Is. 9d per lb. The question now is whether the Government is going to continue that subsidy on declare the rnarkeF an open one, ahd no doubt the report of the Parliamentary Committee that is now sitting wall -have a direct bearing as to what action will eventually be taken The stock of butter purchased ,by the Government is running **dht, and the" supply available is mly ■ sufficient for ajbout three weeks. “Wliat about this season’s supplies? . inquired the reporter. “I am only inferring to last season’s supplies, ’ said, the merchant, “as no arrangement has been made regarding the new season s output. The butter from the va-ious dairy factories, since the commencement of the present season is not :,oinc on to the market, but is being -stored . in the cool chambers. The retail price of butter, fixed by the Imperial authorities in England is 3s per lb, anc there is no doubt that the price will have to he raised. The f .o.b. price a has been made for Australian butter is approximately 2s s*d ner lb and 2s 6d per lb for the New Zealand article. It will then readily he seen that to sel butter at 3s per lb in London would result in a loss, as freight and oth r charges have to be added to the contract prices; in addition there is the wholesaler’s as well ,as the retailer’s profit to be accounted for and administration expenses. On Tuesday the Butter Committee is to meet to ratify the Imperial contract for butter and if the Government should decide upon an open market the retail price of butter • m the Dominion will probably advance from Is 9d to 2s 10d per lb.”