BUTTER-BOX COSTS

Wanganui Chronicle, Volume 83, Issue 33, 9 February 1939, Page 8

BUTTER-BOX COSTS

SURVEY BY MINISTER EXTRA FREIGHT ON SOUTH ISLAND TIMBER [Per Press Association.] WELLINGTON, Feb. 8. Statements made in a memorandum issued by the Dominion Producers’ Co-operative Agency, Limited, complaining against the increase n. the price of butter-boxes since 193536, were replied to by the Commissioner of State Forests, Hon. F. Langstone. This circular, said the Minister, 'also formed the basis of a protest al I the “continued increases” in butterbox prices by a meeting in Palmerston North or butter manufacturing companies of Wellington and Hawkes Bay. The statement in the circular that the average price of butter-boxes rr. New Zealand lor 1935-36 was Is 4id for he standard box delivered to dairy factories, said Mr. Langstone, was incorrect, because it represented a price to a few dairy factories in the Manawatu district only. Even ifi that district some of tne factories were paying Is 6Ad ex the box factory lor boxes and the average figure foi New Zealand was not under the latter price. When the Labour Government came into office it brought wages in sawmilling and box-making industries back to the 1929-30 level. At that lime factories in the Manawatu district were paying from Is (d to Is 9io for the standaru boxes and in some cases these prices' were ex the box factory and not delivered. it wa* also slated in the circular that the price for the present season was 2s 2id a box. Tne industry was wen aware that this was a provisional Ipmce only, subject to a rebate at the [end of the season. It was, moreover i the price delivered and as far as I could be ascertained at present uit (final price to industry would be less ! than 2s id a box by the time the • season was finished.

Increase Reduced. i The increase in the price of IU-c quoted in the circular, after allowance was made for the cost of wiring the sub-standard box., could be re I duced to 7id a box. In the iormei I period quoted all of the white pint |lor the manufacture ot butter-boxes [ was obained >n the North island bu' with a scarcity developing in the (Noith Island it was necessary to supply the North Island boxmaxers win • South Island white pine and lhe in'creased freights thereby necessarily incurred were responsible for increa*Ling box prices by 2-id a box. The bailance of ad increase a box whicn nab (occurred was due to reversion to th* 11929-30 wages and awards. I The circular also failed to makt any mention of the marked increase I which had occurred in the pay-out to ’ factories for butler for tne 1935-3 b season and during lhe present season, • said the Minister. “For the formei (season the pay-out was 1’2.125d a ib of butterfat. To-ciay it is 15.88 d. On ■the tonnage referred to in the circallar, after allowing for the quantil., 'consumed in the local market, these ■ figures represent a net increase n. value of £4,000,000. The increase in butter-box prices computed on the inaccurate basis used in the circular is 'less than one-sixteenth of thL 1 amount and if the correct figures were used it would not exceed onetwentieth of the benefits received by the dairy industry in the way of increased prices for its butter.