PRICE OF BUTTER.

Press, Volume LXVII, Issue 20427, 23 December 1931, Page 12

PRICE OF BUTTER.

FURTHER MEETING AT STAVELEY. STATEMENTS BY COMPANY REPRESENTATIVES. A further meeting to consider the price-cutting of butter on the Jocai market and to hear representatives of several dairy companies was held at Stavcley on Monday evening. Again t the meeting was well attended by dairy farmers, a bus bringing many from Ashburton Forks. Mr G. L.. Bufton was chairman, and the Central (Christcliurch), Ashburton, and Meth•ven dairy factories were represented. Toward the end of the meeting,Mr J. Carr (Methven) suggested that a meeting of representatives of all. Canterbury suppliers be called in Christ■church to discuss thoroughly the matter of bringing the factories together so as to assure a reasonable price to the suppliers and to stop the recent price-cutting on the local market. [This suggestion met with the approval 'of the meeting Ashburton Company. Mr L. It. Clarke (Ashburton) traced the activities of his company. Ashburton was an exporting company for 14 years. The Home prices were good in the early months of the season ; but in the later months (he was speaking of seven or eight years ago) the prices declined, ho believed, because of speculation. An exporting company was not able to compete, with a factory selling the greater proportion of its output on tho'loca l market and exporting hut; little. They had heard casually that North Island butter was coining down on to the Canterbury market so they decided to try the local market. They had started off with 30 Boxes of butter a week and it had grown till they' sold their whole output locaily. Trade conditions were then changing and grocers were beginning to sell butter under their own labels.which one company would not have. The local trade grew and friction started. Negotiations were entered into wi'th other factories; but Ashburton was not to be led by some tempting offers and the 1 fireworks began. Factories Come to Terms. In 1929 the factories came to terms, said Mr Clarke, and arrangements were made.with regard to the Christchurch trade. Things . went along peaceably. Then a chain store began buying butler from the-North Island. Eegretting this two Christchurch factories got that trade at 3d a lb less. A.shburton, by arrangement, relinquished two agents. It was heard that another factory was selling butter lower than agreed. Other grocers got their backs up and an urgent meeting was called in Christchurch. Butter was then selling at Is 2,}d —the 1914 price. One factory reported a loss of sales and suggested that butter should come down 2d. That factory would not be bound by'the majority vote, but nest morning the grocers received circulars announcing that factory's reduction of 2d per lb. Next day a meeting with Ashburton was held ahd the difference was split, butter was reduced Id. This arrangement went on for a week, when the Ashburton grocers heard of the price being reduced again to the 2d in Christchurch. His company had to come down in sympathy. If another Christchurch factory had caused the drop in price on the Canterbury market, why did the first factory extend the price-cutting to Dunedin, causing great loss to dairy farmers down there? That was'the direct denial. Mr Clarke referred to the £IOO challenge and said that Ashburton and the other associated factories .were prepared to put up the price of butter and the grocers were willing, - too, "Would the other company put it up? The .Teed for Unity. Mr S. J. Smith (Central) sftid that Mr Clarke had dealt'fully wi+h the matter, and he would be .brief. He said that when the price had been reduced the 2d last May his concern had fought hard to maintain the price. He dealt with the chain store trade and pricecutting among the factories; He later pointed out that suppliers were not-al-ways loyal. To-day the suppliers were: not united. ..f. nuppliers did not get; together factories could not make them,* and until dairy farmers were united as a force some '. factories could not get better results • for the producers. . Mr J. W. Kime (chairman of the Central Dairy' Factory) spoke briefly. Mr W. T. Lill (chairman of the Ashburton Dairy Comuauy) said that the drop in price last May had cost the Canterbury dairy-farmers thousands of pounds for no reason at all. They (Ashburton) had tried to keep up the price, I but people would buy in the cheapest I market', and no one or two factories could keep up the price if others I brought it down. No one could afford to give Is a lb and sell butter at lid. A voice: One is doing it. Mr Lill: While one is doing it, there must be, and will be an end. He claimed that the chain store was quite willing to put up the price of butter. His ambition was to help the man who milked the cows, and he did not see-that . it was the duty of any factory to pro- [ duce butter below the cost of production. A few factories had fried to work harmoniously;' but another factory would not come in. Mr James Carr (Methven) said that it seemed as if they would never get a solution as long as factories were fighting for the local market—and it was always suppliers who were paying for" the fight. Suppliers had been cut down 2d a lb. He characterised the factories not as co-operative, but as cutthroat ones and made the suggestion contained in the first paragraph. Equalisation Scheme. Mr Clarke suggested an equalisation scheme for the local market as a possible remedy. He did not think one big factory would work. There were always dissatisfied suppliers and the smaller factories would always start up. Mr S. Andrews (Ashburton) spoke stressing the value of an Empire Trade agreement and Mr B. Wightman also spoke on these lines. In reply to a question, Mr Clarke said Ashburton brought down butter from Wellington because they did not put away enough in the flush months to keep the grocers going during the winter. All visiting representaties of factories were accorded a vote of thanks.