PRICE OF BUTTER

Wairarapa Times-Age, 21 September 1938, Page 7

PRICE OF BUTTER

LOSS TO DAIRY INDUSTRY DELAY IN ANNOUNCEMENT (By Telegraph—Press Association.) AUCKLAND, September 20. A loss to the dairy industry estimated at £30,000 a month is being incurred by the delayed announcement by the Government of the price of butter on the local market following the increase in the export guarantee. There is a strong opinion among Auckland merchants that the new price will not be announced until after the election, although no official advice has yet been received. “Retailers have gone mad at the prospect of higher prices and are buying in remarkably large quantities in anticipation of a rise,” said a local merchant. “Grocers frankly admit that they are purchasing in the hope of making profits and practically every shop had several weeks’ supply. The demand is now beyond the capacity of oui’ machines and delivery service, in spite of our efforts to persuade buyers to reduce their purchases. We are now selling thousands of boxes more than usual.” Taken on last year’s local consumption of more than 56,000,0001 b of butter, or about 371 b a head, the loss amounts to £350,000 a year. The increase in the guaranteed price for export amounted to 1,23d,a lb, but as fractions of a penny are not recognised it is expected that the wholesale price will be raised by l|d a lb. to bring it to the same level. The guaranteed price is retrospective to August 1, and if the local value is not announced until after the election the industry will have lost almost £lOO,OOO. The current wholesale price of butter throughout New Zealand is Is 2|d a lb, and it is expected that the new price will be announced at Is 4d a lb. At this rate the retail price would be approximately Is 6d a lb. The quantity of butter sold in New Zealand amounts to about one-fifth of the total production.