THE PRICE OF BUTTER.

Taranaki Daily News, 16 March 1921, Page 6

THE PRICE OF BUTTER.

ANTICIPATION GF INCREASE. PROPOSAL BY PRODUCERS. A statement regarding the future price of New Zealand butter was made on Saturday by Mr. W. Goodfellow, managing director of the New Zealand Co-operative Dairy Association, who attended th.e meeting of the Dominion Butter Committee in Wellington on Thursday. Referring to the butter position after March 31, when the present Imperial Government control expires, Mr. Goodfellow stated that apparently recent* cablegrams from London quoting the price for inferior Argentine and Danish butter, had caused peopfe not conversant with the business to anticipate an early reduction in the price of butter in New Zealand. This would not prove to be the case, however, and in all probability the retail price would be advanced by 2d a lb to enable the present subsidy to be substantially reduced. The increased cost of holding winter butter in store would now be a serious matter, and warranted an increase over the summer values by the amount he had mentioned. The alternative, he said—and undoubtedly the right thing for the Government to do—would be the removal of all control and the withdrawal of the subsidy, thus allowing the local butter market to readjust itself. With reference to future supplies, Mr. Goodfellow said it hfd been estimated that sufficient butter would be manufactured during April and May to meet the country's requirements until when the new season’s make would be available. In any ease the Auckland province would be called upon to supply practically the whole of the requirements of - the South Island during the next five months, as every available box would go to the Imperial Government at 6d albup to March 31. In the past, under normal conditions, the price of butter in New Zealand during the summer months had been based upon export values and the winter prices had been fixed by adding interest, storage and handling charges; The suggestion that the producers should be paid on a London summer parity was absurd, seeing that New Zealand sold its butter in London and Vancouver during the northern winter. In the past, Whenever a local winter surplus occurred, the balance of the March and April makes- was held until August or September, and then exported, so as to avoid marketing during the northern summer, when prices were obviously lower. “The future,” said Mr. Goodfellow,” is full of uncertainty, and next season’s export prices will depend largely upon Britain’s financial and industrial position. It is anticipated that there will be a fall in the export price, and naturally in this event the local price will be reduced in August or September, when the new season’s make will be available. There is ne cause for pessimism among the producers-, for it is now an established fact that New Zealand butter is the be?t in the world to-day. The Danes previously held this position, but owing to the extreme shortage of supplies and the high prices ruling, the Danish producers are reported to have become very lax, and to be now exporting a very inferior article. Recent reports indicate tKat New Zealand alone has maintained and improved its reputation for quality, which is a matter of great national importance, and a cause for gratification. The anticipated fall in freights on fertilisers and farm requirements will in future enable the New Zealand to accept lower prices and at