PRICE OF BUTTER.

Manawatu Herald, Volume XLII, Issue 2130, 20 May 1920, Page 2

PRICE OF BUTTER.

A CORRESPONDENT to the Wellington Post wants to know why the price of New Zealand halter for home consumption should he made to conform to that for export. The writer contends that the butter business here and abroad has not been built up on the money of exporters and producers. "Who pays the wages of the Imltor graders and various experts and dairy inspectors that the Government has for years employed?” it is asked. It is also pointed out that (he cost of these services in the interests of butter exporters and producers is borne by the general public. Why should they get all the benefit and the local consumer have to pay more for the butter? The correspondent slates that Mr Massey lias assured the public that the. local rise in the price of butler is to be a small one; but lie also said that no butter would be allowed to leave (lie country it the local retail price exceeded Is 5d per pound. But it rose notwithstanding, and the present price of Is Sd per pound is too much. The correspondent suggests, among other ihings, that producers should be free to export, but should be compelled to provide the local market' with its requirements at a reas«piable price. Commenting on the abobc, (he Post says: The proposal of furnishing' the local market with its reqnireme.nts at a fixed price, it should be explained, has been followed by ti’.e Government for some years past. At the present time supplies for local consumption are largely drawn from stocks held tor the imperial Government. In order to put the. supplier of the New Zealand butler market on a parity with the exporter, a levy of :';d per pound of butter-fat was made on butter and cheese producers alike. r l bis was abandoned, and subsequently all butler factories wore brought into an equalisation scheme, and exporters and local suppliers wove put upon one fooling as to returns, the Government paying from the Consolidated Fund £340,000 to compensate those who had contributed to the butter-fat levy.” If the price of baiter for home consumption goes beyond (be present maximum of Is Sd per lb. it is possible that another powerful body will take a hand by declaring butler for export “black.” A rumour to this effect is now current.