BUTTER PRICES ENQUIRY.

Hokitika Guardian, 29 September 1920, Page 3

BUTTER PRICES ENQUIRY.

(Per Press Association.)

WELLINGTON, Sept. 29

Giving evidence before the butter prices investigation committee this morning, C. B. Xorwood, CTiairman of Wellington municipal milk committee, gave the following percentage of increases between the periods January 1919 and August 1920:—Coal 60 per cent; benzine 23.23; general labour 23; engine room 26; motor drivers 9.50; first assistant 26. Tlie minimum wage at the city milk station was £4 per week, plus an allowance of one quart of milk per' day. H. W. Bennett, Wellington, (representing retail distribution of butter throughout N.Z.), stated the overhead charges in a grocery business- during the past 4 or 5 years bad increased from 14 to 18 per cent. During the \var, retailers rate of profit was lower trail they would have agreed to at other times ,and now they asked for a fair profit. Grocers’ profits on butter when

the price in the early war period was Is 8d per lb was two-pence. They now asked when the price was 2s 6d per lb or thereabouts, that the profits should have some relation to the expense of running the business, namely a margin of 4d per lb profit, when the price was between 2s 6d and 3s. The gross profit they asked was between 121 and 13 per cent, for cash and from 15 to 16 per cent, for booking and delivery. This margin was below the actual working expenses. In Melbourne the retail price of butter was 2s 7d per lb with !an ex- ! tra half-penny in each instance for booking and delivery. The cost to the grocer was 2s 2Jd per lb. They would muck prefer ,unless they could make a a profit of 121 por cent.- that butter should have the distribution taken out of the hands of grocers altogether. E. J. G- Tunniclilfe, a farmer of Feilding, estimated the cost of production of°his butter fat at Is 5d per lb., without taking into consideration the higher value of his land. Peter Hansen, farmer at Kauwhata, stated his expenditure was £741 as against an income of £679. If credit were given him for wages, interest etc. ho was undoubtedly farming at aj loss.