BUTTER PRICES.

Auckland Star, Volume LXVII, Issue 184, 5 August 1936, Page 7

BUTTER PRICES.

DROP ANTICIPATED

LOCAL MARKETING. BENEFITS FOE CONSUMERS. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, this day. Inquiries regarding the effect of the guaranteed price 011 the local price for butter indicate that the vews held in official circles is that the moment the new season's butter conies into competition with the butter of the old

season, the lower price of the new season's butter will have its effect on

the local market price as the exporter is to receive under the Government's guarantee 12 9-1 Gd per pound and, as it costs about Jd # pound to pat and wrap butter for the local market, the return on an f.o.b. basis will be equivalent to about 12 13-l(jd per pound. If local distributors try to get more than %is then there is a likelihood of the exporters diverting their produce to the local market and thus the price 011 the local msrket will be kept down owing to the volume offered for sale. It is considered that the local price of butter will drop between 2d and 3d a pound unless there s a move 011 the part of dairy factories to regulate the flow to the local market. It is considered, however, that the Government will not allow this to be done, and will desire to see the cousumer get any benefits that may follow from its guaranteed price scheme.