THE PRICE OF RUTTER.

Manawatu Herald, Volume XLIII, Issue 2253, 19 March 1921, Page 4

THE PRICE OF RUTTER.

REDUCTION IN SYDNEY. 2s 2d PER POUND RETAIL. ARTIFICIALLY HIGH VALUES. An order was made recently by Judge Beeby in the Profiteering Prevention Court in Sydney for the reduction of the retail price of butter to 2s 2d per lb. Judge Beeby said the price of. butter was more than 100 per cent, higher than before the war. This price was artificial, fixed partly because of the drought and war, and he considered it unreasonable to expect that it could be maintained. From 112 s per cwt. wholesale in 1913, and Is 3d fter lb. retail, it was raised successively until in August last the price fixed by the Necessary Commodities Commission was 2s 9id per lb. This latter figure was arrived at mainly on the ex r port price, and what was sometimes called erroneously the “world’s parity.” The Imperial contract expired on March 3.lst, but the Court had no information as to what the situation would be after that date. Sho-

uhl tin 1 linperial price nut be maintained the whole matter would have to be reconsidered. Mr C. E. I). Meares, chairman of the Butter Board, asked for an adjournment for a few days. The board realised their Responsibility to reconsider the question. A Federal scheme was now under consideration based on lower values. Judge Booby said he was not hound to accept any scheme they might put before him. Mr K. Street (instructed by the Crown Solicitor), for the Crown, said there had been a reduction in the price of milk, and owing to the position which had since arisen it was urgent that there should he a reduction in the price of butler, lie 1 suggested a redaction of lOd per lh., and asked the Judge to disregard the Imperial price. Judge Becbv: The price will certainly have to come down. I have been trying by devious means to find out what is in (lie minds the parties.

Mr Mcßae, representing the Primary Producers' Union: I am safe in saying that we can nearly meet the wishes of the Crown.

Judge Beehy said it was a question whether there should not he an immediate reduction. The fanner had had the benefit of a high price with large production. He felt they were not making sufficient provision for a winter reserve, but were putting too much blitter into the pool for Ifnperial export.

When the Court reassembled in the afternoon. Judge Beeby. said the point he was trying to get information on wa." “What is’ a fair reduction?" Judge Beehy said it was- quite clear that the retailers' -margin of profit as at present was not necessary. He was satisfied that somewhere near Is 2d a gallon for milk was a fair return to the producer. He would make an order, to come into operation as from March 7th, that the wholesale prices of butter shall be 214 s Sd per cwt., and the retail price 2s 2d per lb. If sold in prints or printed papers, on extra id he charged, making 2s 2id per 11). . The whole matter would he reviewed again if necessary at the end of April, and in the meantime

lie asked dairy farmers ly to keep books, so that there could be a scientific investigation of the prices of butter. There was no need for him to discuss the intermediate rates, as a .schedule would he prepared. He would leave the matter for further inquiry after March 31st. He was fixing no charge as to booking or delivery. It was open to the distributors to make their own arrangements. The figures he had mentioned would be the prices over the counter. In reply to a question, the Judgesaid that before the elate fixed for the order to come into operation lie would be prepared lo consider any new facts which mightbe brought before him.