DAIRY PRODUCE.

Taranaki Daily News, 11 August 1921, Page 5

DAIRY PRODUCE.

AN IMPORTANT CONFERENCE. THE QUESTION OF PRICES. Representatives of the dairy factories and associations and of the exporters of dairy produce were to meet in Wellington yesterday in order to discuss freight rates on butter and cheese. They may approach the shipping compaaiies later with suggestions for an arrangement covering the dairying season that will open next month. Freight rate®., are still very high, and the dairying interests are not without hope of securing a reduction. A committee representing the butter producers will also meet in Wellington for the purpose of considering the conditions that will govern the supply of butter to the local market after the termination of the subsidy arrangement/ at the end of this month. The Government doos not intend to continue the subsidy of 2d per pound at present paid on butter sold for consumption within New Zealand, and the basis of the wholesale price after August 31 will have to be the export parity. Ths subsidy arrangement, coupled with th® prohibition of export, worked to the advantage of the producers during somi recent months, whelß the factories wer« receiving more for their butter than il was worth for export. But now th< London price has risen, and on the latest quotations butter of first and second grade is worth about 2s Id for export. The wholesale price of New Zealand butter in London on August 6 is reported by the High Commissioner to have been 2s 33d to 2s 4d per pound. The indications are that the price will not fall for some months at least, and it may rise higher. If it remains at 2s 4d, and if the retailers in New Zealand handle the butter on the margin at present allowed them, the local retail price need not exceed 2s 4d per pound. But the retailers do not consider that they are receiving a fair profit on butter at the present time, and it is understood that they will want an extra penny when the control is removed. It seems quite likely that the retail price will reach 2s fid per pound before the end of the year.—Dominion.