CONDENSES CORRESPONDENCE.

Auckland Star, Volume L, Issue 187, 8 August 1919, Page 9

CONDENSES CORRESPONDENCE.

S. H. Ody forwards a copy of a letter sent by him to the manager of the Parua Bay Co-operative Dairy Co. The object, of the letter is to show from the working of this factory that the farmer receives much less for his butterfat than the public imagines, and is really selling it at a loss. "Your net payment for 1001b ol cream, according to the annual statement, is £2 10/8, which works out at a trifle over 1/1* per lb of butter, and ia the net amount the farmer receives for butter," writes Mr. Ody. "You can now understand what a false position the farmer is in when the Parliament and public generally think we are getting .181/ net per cwt, and ninc-tecths of our shareholders think we are getting 1/5 net for our butter, when we are only receiving that for our butterfat. Our 'directors should place before the country that the prime or actual cost of producing lib of butter is 1/7J, and the net price received is 1/IJ, so they can realise the extremely grave problem of the producer having to sell under compulsion his produce so much under the cost of production.' The position demands Government inquiry."