RISE IN BUTTER.

Auckland Star, Volume LXIX, Issue 284, 1 December 1938, Page 8

RISE IN BUTTER.

LOCAL MARKET. NOW 1/6* RETAIL FIXED WHOLESALE RATE. Retail butter prices throughout New Zealand were raised 2d a lb to-day, and first-grade is now selling at l/t>i -with second jd less. This is th j result of the decision announced last night by the Hon. W. Nash. Minister of Marketing, to raise the fixed wholesale prices to 1/4J per lb for first and l/4j for second. The retailers' margin of 2d a lb brings the retail rate to 1/.IJ. though there is no compulsory fixation of'sliop prices. Since August I when the guaranteed price was fixed at 14.81K1 per lb the Government has shown a loss on butter sold locally, <is last season's prices were ruling on the local market in spite of the rise of 1.23 d a lb in the farmers' selling price. Retailers and wholesalers have been pressing for the announcement of the new season's priec since the announcement of the guaranteed price on September l'i. The Minister said last night that the new price which operates from to-day will insure the actual recovery from the consumer by the Marketing Department of the amount paid to the dairy farmer iu accordance with the price guaranteed for the current »eason. The allowance to the wholesaler for distribution will remain the same. A Gazette notice fixing these prices was published to-day. As in the case of export butter, the Government's control of local marketing is financed through the Dairy Industry Account with the Reserve Bank. Losses since August 1 have been met from this source and will be made up, judging byMr. Nash's statement, by increased receipts from now on.