GUARANTEED PRICES

Wairarapa Times-Age, 11 June 1938, Page 3

GUARANTEED PRICES

NOT TURNED OUT A BOON DISSATISFACTION AMONG FARMERS (By Telegraph—Press Association.) INVERCARGILL, June 10. “The dairy-farmers of New Zealand are losing heavily because the price of butter sold for New Zealand consumption is based on the guaranteed price instead of on London parity,” said the president of the Southland provincial executive of the Farmers’ Union, Mr A. R. Johnston, when speaking at the annual Southland conference today.

“For the past 15 weeks there has been an average loss to the dairyfarmer because of the guaranteed price of £l2 19s 2d a ton of butter sold for New Zealand consumption;” said Mr Johnston. “The average consumption of butter in New Zealand is 500 tons a week, which means that the difference between the New Zealand price and London parity amounts to the huge sum of £6479 a week. Since the beginning of March to the present time the loss would appears to be more than £97,000.

“The guaranteed price has not turned out the boon that was anticipated and the resulting dissatisfaction has fostered agitation for a compensated price. The mounting surplus ir : the season’s dairy account and the loss to the producer through the price of butter for local consumption being based on the guaranteed price instead of on London parity is causing the dairy industry furiously to think.”