PRICE OF BUTTER.

Taranaki Daily News, 5 October 1920, Page 4

PRICE OF BUTTER.

DECISION LIKELY THIS WEEK. SUBSIDY MAY CONTINUE. The future price of butter will remain undecided until after tiie committee appointed by the House of Representatives some weeks ago makes its report. The decision will rest with the (government, but the recommendation!) of the committee naturally will carry weight with Ministers. The present position is that last season's butter is subject to the Board of Trade's order fixing the maximum retail price at Is 9d per pound. Very little of this butter is still held in the stores, and the supply is expected to be exhausted altogether before the middle of this month. Some districts are almost bare of the old butter already. The new season's butter, which is being made in small quantities, is not subject to price restriction at present. Its export parity, on a retail basis, is about 2s lOd per pound. The actual price to 'be paid by the consumers will be lixed by the Government, after the Butter Committee has reported, but in the meantime the people who hold new butter are not violating any regulation if they sell locally on the basis of the export price. It appears that some factories are continuing to put butter on the New Zealand market at the old price pending the announcement of the Government's decision. The Butter Committee is expected to make its report to the House of Representatives this week. There is little doubt that it will recommend that the producers slir.ll receive the full market price, as determined by the export value. But there is some reason to believe that the local consumers will obtain a concession in price, involving a continuation of the subsidy now being paid on locally-consumed butter by the Government (says the Dominion).