PRICE OF BUTTER.

Auckland Star, Volume LI, Issue 206, 28 August 1920, Page 12

PRICE OF BUTTER.

THE IMPERIAL OFFER. » , EFFECT ON LOCAL PRICES. '■ (By Telegraph.—Own Correspondent.) HAMILTON, this day. Mr. W. Goodfellow, general manager of tbe New Zealand Co-operative Dairy : Co., who has just returned from a sit- , ] ting of the Dominion Butter Committee , i 111 Wellington, interviewed by a "Star" ] j representative, reviewed the position , from the producers' standpoint, and , read a cable recently received throuerh ] the High Commissioner in London. He , stated that after careful consideration, . tbe committee had handed to Mr Massey . the following resolution, and inticipated , a reply from London in the course of a week or ten days:—"That tho Imperial ' Government be informed that the But- . tor Committee will recommend the pro- , ducers to accept 280/ f.0.b., providing , the term of the contract be extended to March 31, 1921, including existing terms of payment, storage, etc., provided existing sales and contracts made with I America and Canada prior to August 21, 1920, are recognised, and a free and unI restricted market in the United Kingdom is granted after March 31, 1031." i Commenting upon the position, Mr. • Goodfellow said it was important to note that no sale would be made unless a I free market was granted in the future, t The payment of 280/ per cwt f.o.b. for 1 butter, he continued, would enable the - large dairy companies to pay out ap- 1 proximately 2/8 per lb for butter fat, and ( give a return to the producer on a parity with cheese. The sale of some 2000 tons 1 of butter to America an_l Canada at 2/fl < per lb f.0.b., had the desired effect of ' I promptly raising the previous British 1 offer from 2/2 to 2/6, and in view of ' this fact it would be most unfair to ' place an cmbarp-o on exports, and there- ' by prohibit delivery, thus tbe further " proviso with reference to existing contracts. ■ Tn answer to an innuiry regardinc ' local sales, Mr. Goodfellow stated that \ cheap Government butter was rapidly ' being consumed, nnd it was estimated ' that supplies wou'd be exhausted by J October 1, when the local price would be adiusted, to give a return equal to ! the extinrt sales. Owinfr to the present ' very high manufacturing costs the retail ' twice would have tn bo raised to annrovimatelv 3/ per lb. The retail price in Australia was now 2/0 per lb for an inferior article. ht"l jrnod *"»tte* ; n Kmr-lan-1 had been Felling at 5/ ,er lb for a long time.