BUTTER PRICES.

Taranaki Daily News, 6 May 1919, Page 2

BUTTER PRICES.

SHE LOSS ON LOCAL SALES. Palraerston North, May 2. Representatives of the dairy companies in the Manawatu and Wairarapa districts met in conference at Palmerston North to consider what steps should be taken to prevail upon the Government to remove the existing restrictions under which factories are compelled to sell their butter locally at ls 5d per lb in hulk, while by exporting it they can obtain nearly ls 7%d on the Home markets. The meeting was presided over by Mr. P. Hansen, of Awahnri, who pointed out that butter was the only food product on which the Government had fixed a price for local consumption .and the butter factories were thus unfairly discriminated against. It was for the meeting to take definite steps to approach the Government in the matter. According to Mr. Ewlngton the meeting did not have the necessary weight behind it to influence the Minister In the matter. In his opinion the Government should be urged to pay out the difference between the prices for exported and for local sales for the periods 1918-19 and 1919-20 out of the ' consolidated revenue. Mr. Miehie urged that a definite understanding should be arrived at with the National Dairy Association. The chairman pointed out that It was useless to approach the Dairy Association. He had letters from various places in support of the movement. In emphasising that it was necessary to get tnto touch with all butter factories in the Dominion, Mr. Hansen stated that ten or twelve factories could carry no weight with the Minister. .. According to Mr. Darragh the Butter Committee was preparedjo help .the .butter factories in oyery'way. In pointing outthat the butter companies'were not. properly organised, ho stated that In 1 Canada dairymen" had been successful In securing one offer for both butter and cheese. In Canada they had acted on business principles, and the dairy companies in New Zealand should do: the same. They ought to be able to draw up a. businesslike statement for presentation' to the' Minister. Mr. tCampbell moved that a circular bo sent to the butter .factories of all districts in the DomihiDh asking them to call meetings of those interested, advising them of the resolutions arrived at and asking them to co-operate by appointing Relegates to meet the Dominion Butter Committee in Wellington on May 21, and the Minister, if It could bo arranged, with a view to getting the difference between the export and local prices since the Government took up the purchase of butter, paid out of the consolidated revenue, and also to ask liie National Dairy Association to co-operate. In the course of a general discussion it was pointed out that in round figures one-third of the butter produced was sold locally, involving a loss on the part of vendors of 2<4d per lb or 33 1-3 per cent, of their output. Cheese vendors, on the other hand, sold their produce to the Imperial authorities at 10% d per lb, while ls 3d was the retail price charged on the local markets. Under the Government's equalisation scheme, those vendors who sold the whole of their output locally would probably receive l%d per lb compensation, tha Government making up the extra price out of the export purchase price of 181s per cvrt. This was not sufficient, as the loss of 2%d per lb incurred through selling locally should come out of the consolidated revenue. *

I The motion was carried, and It was dadded to ask the Minister to meat ti» doleeatea In. .Wellington on May 21 ««"*«*■ u>