PRICE OF BUTTER

Hokitika Guardian, 23 March 1921, Page 1

PRICE OF BUTTER

NO CHANCE OF A FALL

WELLINGTON, Alarch 21

i Alucli speculation is being indulged I in as to what the retail price of hutI ter will be after Alarch 31, when the Government discontinues its subsidy, and a free market is at the disposal of the factories. From inquiries made it would appear that there is not much j likelihood of the price of the commodity being reduced to the New Zealand consumer. As a matter of fact, those closely in touch with the industry predict a slight increase in the retail price. “The position in a nutshell is this.’ remarked a representative of one distributing house. ‘‘The present ideas oi the factories on the subject are such that it will mean a retail price of about 2/8. The present maximum retail cash | price that may he charged is 2/3. What l attitude will the Government take up if the factories put their price up to 2/8; AYhat will the Government do? They have yet to make the position clear.’’ It was pointed out that the summer price for export has been 2/6 f.o.b. The equivalent on the local marled "as 2/9 retail, hut the Government to onfable the consumer to get butter at 2 3. 1 paid a subsidy of 6d. It expected that producers would bo entitled to higher prices for winter manufacture. As a matter of fact, if Hu* retail price were made 2/8 they would get Id per lb. less for butter made in' the winter than they secured for butter made in the slimmer time. “It lias been suggested,” remarked one official, “that the factories should get ail export parity on the local market, when, as a matter of fact, there j s no such thing as export parity as from April f. If butter were shipped in April it would he delivered in England in the middle of the summer whereas under 'ordinary trading conditions any surplus for export in April would be hold until July to enable such shipment to secure the best market in England. To speak therefore of export parity during our winter and the English summer is out of the question. fn pre-war times the price of butter in winter in New Zealand was always very much higher than the price ruling in England during their (the English) summer." Meanwhile further developments will be awaited with interest.