BUTTER

Hokitika Guardian, 1 April 1921, Page 4

BUTTER

RISE IN RETAIL PRICES. 11AI.K-A-CBOWN A i (il N|) HUHIXCi WINTER. PALMERSTON N., March 30. A thoroughly representative meeting of dairymen concerned with the production of butter for the winter months was licit! at Palmerston North to-day to consider the question of fixing tile price lor butler as from April 1, following the termination of the contract with the Imperial Government. It was resolved unanimously that an equitable basis of price for butter a* from April 1 would bo the one adopted recently bv ti representative meeting of Auckland producers, namely 2s 2}d per lb in bulk at the factories or free on board or free on rail, and 2s 4jd for pats, with Rl discount for cash. The fixing for the same price for bulk butter, free on rail or free on board, as at the factory, was to facilitate a uniform retail price of approximately 2s (id throughout the Dominion. It was explained that with the cessation of the subsidy scheme the price ol 2s 2}d at tlie factory meant a drop of 3d for the producer. It was estimated that the increase in cost of production for the winter would be about 25 per cent, equivalent to about (id per lb, and the increased charges for storage and interest would add another penny. Thus at 2s 2}d the production for the winter would show a total drop of 10c! per lb by comparison with the production of the summer.

Brief reference was made to the London parity question raised in various published reports, but the opinion of the meeting was that the London parity was not a. factor at this time of the year when the export season was closed. The whole question at issue was the production of butter as From April I for the local market on a basis reasonable to both' the producer and the consumer.