THE PRICE OF BUTTER.

Waipa Post, Volume I, Issue 23, 4 July 1911, Page 4

THE PRICE OF BUTTER.

POSITION OF THE FACTORIES. A gcod deal of mention has been made in public prints during the past few weeks concerning the increase in the price of butter, and on Tuesday the position in regard to the market was explained to a Christchurch " Press" representative by Messrs Chas. P. Agar (secretary of the Tai Tapu Dairy Company), and S. J. Smith (secretary of the Central Dairy Company), who have just returned from a visit to the Palmerston North Show. It had been stated, said these gentlemen, that the prices at present charged for butter were too high, also that Australian butter could be landed here to sell at a profit of is. 2d. retail. This statement had caused some feeling, and it was in the interests of the factories, the storekeepers, and the public generally, that the true position should be made more clear. "We are of course, dealing with the position as it is to-day," said Mr Agar. "If a firm had sought butter as a speculation early in April, and held it, of course they could afford to sell it. cheaper. The position was quite normal in April, and almost everybody in the trade was of opinion that butter would be cheaper. When the figures for the May make were known, however, they showed a decrease of about 50 per cent. The market then became panic-stricken, and

prices rapidly advanced. To-day there is very little butter in the Dominion that is not already sold, and a quantity of this is only fit for pastry butter. Almost every firm in the trade started to store too late to meet contingencies, and in addition to this fact factories which last year sold to wholesale houses are this year buying heavy quantities for their own local requirements.

"In regard to the suggestion that Australian butter should be purchased for New Zealand, the local factories cabled to their agents in Australia asking the lowest price at which they could procure butter of a guaranteed quality.. The reply was that it would_ cost is id in Australia. To this price would have to be added 20 per cent. duty, and the general cost of handling would be another 3d a lb. This means

that Australian butter could not be landed here under Is 4d per lb. Australian butter is, therefore, out of the question."