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Hokitika Guardian, 5 April 1927, Page 2

Dealing with the butter market and the effect of decontrol as far as price fixing is concerned, the financial critic March 14th, the Dairy Control Board abandoned its policy of price-fixing, and instructed the London agency to accelerate sales, fixing the weekly limit at olnddhcortelDf alt Acer unirpostOyOzeir 90,000 boxes of butter, and 40,000 crates of cheese. Prior to that date the average sales were .about 30,000 boxes weekly. The London agency was thus instructed to treble the sales without restriction as to price. Of course, the price dropped, but the drop was not so great as seemed likely. Thus during the first three days of free marketing bo.Boo 1 waxes were sold at an average of 146 s per cwt., as compared with an average of 161 s in the preceding week,

when only 43,470 boxes of butter were cleared. Tn the first week of free marketing tlie prico dropped to 1465, but after that under pressure of an increasing demand the price advanced to 155 s and the tendency is upward. The prices to-day are on an economic basis, regulated by supply and demand, and the butter is going into consumption rather than into cold store. The position to-day is sounder and much healthier than when the Board was endeavouring to obtain an uneconomic price bv creating an artificial scarcity and cold-storing the product. The more stable character of the butter market should convince those who have lieen advocates of price-fixing that a free market is the best, for all concerned, but it is doubtful whether anything will convince those obsessed with an idea} and bindod by ignorance. In respect to New Zealand dairy produce there is more genuine cause for optimism iodav than at the beginning of the month when shipment after sliipmen' was going into the store there in run up charges and eat into profits.