BUTTER PRICES

Press, Volume LXXI, Issue 21436, 30 March 1935, Page 12

BUTTER PRICES

CHRISTCHITRCH ABOVE AUCKLAND LEVEL VARIATION OF Lf TO 2-iU A POUND There have been two reduction..; made in the price of butter 011 the local market in Auckland during the last month, but when enquiries were made in Christchurch yesterday it was staled that there had been no corresponding reductions here. To-day butler on the Christchurch wholesale market is selling at up to 2kl a pound more than butter of corresponding grade in Auckland. The last reduction made in Auckland which amounted to Id a pound came into operation early this week. It was the second of the month. The new wholesale rates in Auckland to-j day are:—Finest and first grade. 10d a pound; second grade, 9d; whey butter, Bd. Retail prices are generally 2d a pound above tin; wholesale levels. In Christchurch to-day the top wholesale price is Is l.Ud for standard brands, with a second price of Is for butter of companies' second brands—not second gradebutter, however—and also for butter prepared for sale under the private wrappers of individual firms. Explaining -the second drop in price an Auckland announcement states that it has been made in sympathy with the reduced values in London.

Christchurch retail prices vary greatly, according to the method of sale. In some shops butter is available at lid to Is a pound If purchased with quantities of other groceries, but butter under firms' wrappers is Is id a pound and the highest price is for butter sold under the standard brands of companies, which is Is 2d. This year local retail prices have been advanced. Comment of Manufacturer When the manager of one of the largest dairy companies in Canterbury was approached by a representative of "The Press" yesterday for an explanation of the substantial difference between the prices in the two centres he stated that the lowprice in Auckland was probably caused by the competition being accentuated by the operation of factories which were not consistent sellers on the Auckland market. That was probably possible because of the London market easing. Asked if the reduction in Auckland would mean that competition with Canterbury butter on the | Christchurch market from the North i Island might be possible, he stated that when the competition resulted —if it did result—it would have to be met. He did not think that the factories were exploiting the Christchurch public, and added that at present the Christchurch factories were having to accumulate a surplus in store to provide for the winter months when the production was not sufficient to meet the demands. Factory advances to-day were Bci a pound for butterfat. To that had to be added Id a pound for interest and storage charges p.nd 2id for manufacture, and on that basis he claimed that the prices being charged were not too high. Further, he concluded, the great percentage of butter locally was being sold at Is a pound wholesale. Actually if the cost of patting was provided for also the local price did not compare favourably with the f.o.b. parity.