PRICE OF BUTTER.

Taranaki Daily News, 25 June 1920, Page 4

PRICE OF BUTTER.

INCREASE TO Is fld PER POUND. DUE TO STORAGE CHARGES. The retail price of butter will shortly be increased in New Plymouth from Is -7d and Is Sd per lb to 'is 9d per lb. The increase lias been authorised by an Order-in-Council raising the maximum price for butter sold in bulk ex store from Is s'd per lb to Is (ijd. Previously the price was Is ad, and the retailers were supplied with pats at Is fid and allowed to retail at la Sd. Many of the retailers, however, sold the butter at la 7d per lb, allowing themselves only a bare margin of profit. Under the new arrangement retailers will have to pay Is 7d per lb for first-grade factory butter, and the price to the public will be Is fld.

A New Plymouth butter merchant informed a Daily News reporter yesterday that the increase had been authorised by . the Government to cover the cost of storage of the butter. The actual output of butter at the present time was much below the demand, and most of what was being sold had to be taken out of store. He explained that it was usual for the price to be increased at this time of the year, in order to covor the extra cost of putting the butter on the market in winter. This explanation was endorsed by a grocer. He said that the, Gazette notice regarding the increase stated that' it would apply to all- butter manufactured during the currency of the existing contract with the Imperial Government, terminating on Jiilv 31, 1920, and whether sold before or after that date. In his opinion the present increase was the forerunner of a further increase which would be made later, and lie believed the next price would be a good deal higher than Is 9d per lb. > The present increase in price will not take effect in New Plymouth until about a week's time.