THE PRICE OF MILK.

Te Aroha News, Volume XI, Issue 1723, 20 March 1895, Page 2

THE PRICE OF MILK.

The long-Continued depression which has prevailed in the London market in regard to butter, it' likely to' bring things to a crisis in the colonies. “For two years it is said no profit has .been made upon the butter exports sent from the colony, and no interest obtained Ttpon the capital employed in'the business. . ThAamotmt of capital at stake is very considerable, far larger than many. would suppose. This year Messrs Reynolds and Co have paid for milk a little over L 30.000, and by the time the season closes it is expected: that for milk bought, expenses incurred, losses sustained in maintaining, {creameries where the milk ef sufficient number of cows to make it q jable was not provided, etc, by tbe end of the season quite .£40,000 will have been paid in connection with this business. The loss sustained this season already has been such that this firm have decided to try to effect fresh arrangements with" milk suppliers. A member of the firm is now in the Waikato district trying, to effect Some • modification in the form of agreement, and a circular Has been issued upon tHe state of tHe trade transactions up to date. proposal they make' is a slight modification of the agreement, come to at the beginning of the milk season, ; ?and ; .tbojigh the Victorian price of milk Has been /reduced/tt>. 2d per g allon owing to the low prices obtained for butter in'-: the. London -market, Messrs Reynolds afid Co. oily propose a reduction of a farthing per ..gallon, to be allowed on thfe-seHsoifis trarCsacfcihns from September 1, to be liquidated from the March aud April payments in two equal instalments. ,If this.prdposalis agreed, to, the circular states that the business /will go - on s those who do not.'"fall in With the new arrangements .wifi cease- to - meet With a market for their HiiUf; The issue is a serious and important one to all concerned, both to the milk suppliers as well as to the butter factories. The local price of dairy-made butter has alreay fallen to an average of sdper lb) with at best- a limited market, and many farmers have provided a-stock of cows for the supply of milk for butter-making, pigs, and other stock for the use. of the skimmed milk, which will-be. rendered comparatively . valueless; so that an/action of the character stated above throwsthe whole organisation Out of gear, and puts all to inconvenience. As the,least of the’evils inevitable, perhaps the reduction qf a farthing per gallon in the price of milk until such time as the London market recovers from its stagnation, is that OUe. ’'To bhrst up tlie whole of the organised milk .trade, now existing for providing an export of butter beyond the colony, would produce results of a lamentable character, and tend to throw back thetrafie and enterprise .of the colony for a long time. It is' always 4 aii ungracious /thing to.CbniTrsel the taking of a lower price for any article of agricultural produce, for as a rule those are generally pretty, nearly at Ibeclitock:prices,-but ;in/the present cirmay fairly be concluded that . if thd farmej’s ol Yjcjio.ria, ifi thhir dry and Uncertain climate, can .make a living profit by selling their milk at 2d per gallon to fhe butter factories, the New Zealand milk producers, with" a graS3-producing climate, fat superior and: far. more certain than that of their neighbours,, should be able Jco hold their; own, especially when a . higher price -per gallon is . paid.“Hearald," ’ .