MILK PRICES.

Auckland Star, Volume LXVI, Issue 130, 4 June 1935, Page 12

MILK PRICES.

COSTS AND THE CONSUMER.

RETAIL VENDORS' STATEMENT,

Mr. W. H. Madill, eliairman of the Auckland Metropolitan Retail Milk Vendors' Association, writes: —

"Those desirous of fully understanding the true facts of the milk trade in Auckland may be confused by the issues raised in the correspondence columns of the Press of recent date, simply because onlv part of the story has so far been told.

"About 10 months have passed since the Auckland Metropolitan Milk Council commenced to administer the Auckland Metropolitan Milk Act, 1933, which Parliament (in its wisdom with all the facts before it) saw lit to place upon the Statute Book, and I think at that time the outstanding features of the milk trade which had a vital bearing on the whole issue, were that producers in some cases were receiving as low as 2Jd per gallon for town milk, whilst many vendors engaged in the actual delivery we're receiving less than, a relief worker's wage, and all others engaged in the handling, treatment or delivery were by no means covering reasonable costs.

"It is true that the consuming public were buying the article at a ridiculously low figure, but I for one have yet to be convinced that the public of Auckland wished such a state of conditions to continue, knowing full well that they were buying the article at a price which meant 'sweated labour,' in an extreme degree to both producer and vendor. It is also true that prior to the functioning of the Act the producerwwats t in a serious position, perhaps no less serious than the majority of those otherwise engaged in th? (own milk itidditvy, but it must be remembered that the milk "war" was entirely due to the fact (that one set of producers were misguided enough to beliftve that milk could be delivered at 3d per quart, and at the same time allow reasonable production costs. How doe.i this compare with the present attitude of 0-, d per gallon being insufficient to cover production costs? If there is a grfeat deal of milk delivered which cannot be sold as milk or cream, surely the vendor cannot be blamed for this. And surely there are costs other than produerou costs which have a right to consideration, and the question of economic costs should apply to the producer as well as to the vendor.

I represent an association of vendors whose total membership consists of approximately 90 per ?ent of those who are endeavouring to eani a livelihood by the "sweat of their brow," and claim to be working under a le.ivcry' margin which is below the "estimated cost," whereas the producer is at present enjoying a price for his gallon which is lather more than a id a g:illon above h's "estimated i;ir.t" of .H.fid per gallon taken into account by the Bdino authority when the margins wore allocated. I venture to suggest that upon the facts this section ha-! moi'2 cause for complaint than that section which is continually raising its voice in protest and placing mors 1 elianoe on theoretical illusions or that little <cuc\vli;dge which usually leads to the danger zone, tliun on stern facts.

The existing posit'en 7s that the number of town supply pulticers is increasing, whereas the numiuT of vendors is decreasing. This slio"M speak volumes and should make it quite clear that because of producer l>ools causing the average pay-out to fall oelow the fixed price of OJd per gallon, no benefit accrues to the vendor, who pays fn'l ;n-ice for all milk sold by him —in come cases full price for wastage and for that which he is unable to sell—and who sells considerable quantities at prices much below the maximum pric> oT household deliveries. At the same time it should be interesting to note that in cases where vendors buy fresh milk direct from the farm, those producers receive a price in excess of OJd per gallon, so it should be evident that the vendor cannot profit at the expense of the producer. As a matter of fact, there is a g. owing conviction that the boot is on the other foot.

Finally, may I suggest that "zoning," "pooling" and "consolidation" be given more than passing study. These are mightly questions, and may be solved in time, but meantime perhaps we may all be led to a better understanding of the difficulties if full realisation be given to the fact that the condition of the milk industry of Auckland is part and parcel of wprld-wiJe problems, which appear to be of mental origin, and therefore can only be smoothed out by a correction of this lapse.

There is a Biblical origin of the expression, "Escaped by the skin of his teeth." The Book of Job, xix., 20: "My bone cleaveth to my skin and to my flesh, and I am escaped with the skin of my teeth."