BUTTER PRICES.

Auckland Star, Volume LXIV, Issue 15, 19 January 1933, Page 5

BUTTER PRICES.

PLAN TO STABILISE.

MR. A. J. SINCLAIR'S SCHEME,

CHAMBER OF COMMERCE ADDRESS.

"A simple and effective method of placing the local butter market on a stable basis, fair and equitable to the consumer and to the producer."

This is the claim made by Mr. A. J. Sinclair, secretary-manager of the Te Awauuitu Co-operative Dairy Company, in regard to his scheme for assisting the farmer in the marketing of butter for local consumption.

Addressing members of the Auckland Chamber of Commerce to-day, Mr. Sinclair outlined a plan whereby the farmer would receive 2d a lb more for butter supplied locally than for that which he exported. The consumer, he claimed, should have no cause for complaint in being asked to pay 2d a lb more for butter which came fresh from the churn as compared with frozen butter.

New Zcalanders, said Mr. Sinclair, were the greatest butter-eaters in the world, and each family in the Dominion consumed on an average 31b of butter per week. The additional charge, therefore, would be Od per week for each household, and the scheme would benefit the farmers to the extent of £400,000 a year.

The present system of retal distribution was anything but satisfactory. Secret rebates and differential rates were allowed by some distributors, with ruinous results to the trade. Transport methods, too, were wasteful, as there was so much overlapping. It was not proposed to interfere directly with the retailer, but an effort would be made to assist in placing distribution on an equitable basis by fixing the allowances to be made to every dairy company to cover patting and delivery charges from the factory to the storekeeper. The speaker made it plain that there would be no effort at stabilisation of prices, which would still be ruled, as at present, by export conditions. What was sought for was a stable basis whereon to fix wholesale rates for local consumption. Although the scheme had been launched in its present form only seven weeks ago, it had already received the endorsement of S2 dairy companies. The vote of thanks was moved by Mr. A. A. Ross. Mr. A. M. Seaman, president, opened the proceedings, after which he left to fulfil another engagement, the chair then being taken by Mr. M. Stewart.