THE BUTTER MARKET.

Shannon News, 18 October 1921, Page 3

THE BUTTER MARKET.

UNSTABLE NEW ZEALAND CONDITIONS, “One Long-suffering Public” writes: “According to the reports in Hie papers'butter is being retailed iu Palmerston at is 9d, in Wellington at is lOd and in Levin at Sis Id. Tne disparity aroused my curiosity so A enquired, irom tne produce-aeaier whether he could throw any lignt on butter prices. He stated tbat butter had come down with a steep run in Wellington, and as showing the anxiety oi merchants to do business even at the lower prices, he had been rung up two days ago and offered supplies of firstgrade butter jat the wholesale rate of Is 8d per lb, which would permit of a retail price of Is lOd, the ruling retail price in Wellington at present. The district factories would have to fall into line in order to give the retailers a chance of competing on a level footing with Wellington, otherwise it was certain that outside competition would force its way in. We all know our local butter is a superior article, but, in these hard times, 3d or 4d per lb seems to need some explanation.” THE COMPANIES’ POSITION. WILL NOT BE A CHOPPING BLOCK. On referring the above letter to Mr Sv A. Broadbelt, chairman of directors of the Levin Dairy Company, he stated that butter values in New Zealand were governed by the f.o.b. export prices, and upon that basis also the retail values were fixed. When the companies settled on the wholesale price here, a margin of twopence per lb was put on top of that by the retailer. The disparity in the retail prices' in Wellington and other places, he said, was the- result of the cutting that was going on between the merchants and retailers. There was no doubt about, that, and if they wanted to carry on a competition war, the companies could not help it. The merchants and retailers were Certainly not going to make a chopping block of the companies. Reverting again to, the retailers’ margin, Mr Broadbelt said he had heard/that some of the larger concerns in the city Were only adding Id per lb for handling butter, and others went better still and added only a halfpenny simply to get the trade and beat the other fellow. It was anticipated by the companies that another fall was coming, and the Levin company, of course, would fall into line. A meeting of the company’s directors would be held at the beginning of next week, when the question of price Would be gone into. “GOT THE WIND UP.” Speaking yesterday oi the butter situation m New Zealand at present, a gentleman connected with the industry stated to a Chronicle reporter that it looked ag'il the butter companies nad got the wmd up and were gomg in tor competition in price-cuumg to get local trade. This was a mistake and instead of following up that line of business they should organise and come to an understanding to stabilise the New Zealand market. He pointed out that at the present time old butter of mixed grades was bringing 205 s per cwt on the English market, while in New Zealand our new season’s product of better grade was selling for less. He had that statement on good authority. However, there was every sign of an improvement on the English market, as the High Commissioner had recently cabled that the new season’s supply was expected to bring an appreciable premium on the ruling values there now. Personally, our Informant stated, he thought bottom bad been touched and we were nearer stabilised prices to-day -than at any time since the war.