RETAIL BUTTER PRICES.

Taranaki Daily News, 25 October 1921, Page 5

RETAIL BUTTER PRICES.

DANISH VALUES AS BASIS. AWAITING SALES IN LONDON. The position of the butter particularly as regards prices in the various Dominion centres, was diseuaeedi by Mr. Hugh C. Aickin, a member of the Auckland section of the Dominion Butt ter Committee. Mr. Aickin said the telegrams from southern centres, quoting retail prices for butter at from la 9d to 2s a pound, would make it appear that the public of Auckland is being exploited by dairy companies through having to pay 2s 2d to 2s 3d a pound retail for standard brands of first quality butter. The position was that if the whoieaale price of 2s a pound now being charged in Auckland was considered to be out of. all proportion to the probable export value of new season’s butter, there was nothing to prevent, not only southern dairy companies, whose wholesale price averages Is 9d a pound, but a score of Auckland factories as well, offering to seH their butter in Auckand at Is 9d a pound, plus a very small amount for, transport charges from the south. This was not being-done, nor was it.likely to be done.

COMPETITION FOR LOCAL TRADE. Owing to unsettled conditions on flie* London produce market, he said, opinions varied as to the price our new sea-< eon’s butter would realise when it reach> ed Ijondon. and some southern fac-5 tories, which had never previously ered for the local market, had recently, endeavored to establish a local connection. When butter was at 2s Id, a( pound these factories offered a contest .sion, at first to storekeepers of ai pound below ruling rotes. This wasJ met by a fall of Id a pound by fac-< tories with old-established New concerns challenged again with af further Id a pound reduction, and werej finally driven from the arena by oML-J established factories making a drastic eut of 2d a pound, bringing the price to Is 9d a pound wholesale. Already factories supplying markets south of Auckland were displaying signs of uneasiness, and it was practically certain prices in the south would be increased

in the very near future. Mr. Aickin added that Auckland factories conducting a local business had endeavored to do justice to their suppliers and at the same time deal fairly

with the public. Without any new season’s butter from this Dominion seeing in London to guide factories in fixing local prices, they had been compelled to take Home values for Danish butted

as a basis for local price fixing. Danish and the best brands of New Zealand butter usually realised approximately the same price on the London market. When the New Zealand Government released our factories from controlled prices at September 1, the price in Auckland wae raised from 2s Id to 2a 2Jd a pound wholesale, to equal the Danish value of 262 s then ruling in London, lees 2sd a pound, being amount of transport other charges to place our butter in London.’ A fortnight later the price of Danish butter declined, and to meet this fall Auckland factories reduced the. price by l£d a pound, and, a fortnight later again, a further reduction to 2s wholesale was made. Since this last reduction Danish butter had steadily increased in price, and was selling to-day at 2s 24d a pound ok the London market. DEFINITE BASIS NEXT MONTH. Upon these figures, said Mr. Aickin. after making allowance of lid a pound for patting and distributing butter on the local market, the wholesale price should be 2s lid net to be on a parity with Danish values, instead of 2s a< now obtains. It was possible that Auckland factories would be content

with present local returns until their new season’s butter was marketed ii London next month, and thereafter it might be taken for certain that th< local price would be fixed from tithe tc time in accordance with values ruling on the London market for choice qua’ ; ty New Zetland butter.

Factories in no way controlled retail prices, he said, this being the concern ol the grocers, but it was evident that some grocers in the south, by retailing butter at Is 9d a pound, were selling at cost price. The wholesale price of batter was fixed in the various centres Sy the local members of the Dominion Butter Committee. The members of the Auckland committee were in close touch with each other, and in the event of any material change in the Home market for new season’s butter, the. local prices would be altered to meet it.