BUTTER DEARER

Press, Volume XCIX, Issue 29245, 1 July 1960, Page 11

BUTTER DEARER

Up 2d a lb In Australia (N.Z. Press Association—Copyright) CANBERRA, June 30. The retail price of butter rises in most. Australian states by up to 2d a lb tomorrow—but it is “improbable” that New Zealand butter manufacturers will be able to take advantage of the price rise by under-selling Australians, the “Melbourne Herald” said today. The price of cheese will rise, probably by Id a lb retail. The price rises became official tonight when the Federal Primary Industries Minister, Mr Charles Aderman announced an increase of 1.564 d a lb in the exfactory price of butter and an increase in the ex-factory price of cheese of %d a lb. Mr Aderman said the price increases were the result of an increase in farm, factory and distribution costs in the last 12 months. The “Herald” said Australian butter distributing organisations would handle large quantities of New Zealand butter, shipped direct from New Zealand. Butter sold at 2s 6d a lb in New Zealand, but it was heavily subsidised, the report said. The report continued: “Without the Government subsidy the price would rise to 3s 9d a lb. It is estimated that New Zealand butter sent direct to Australia would sell at about 4s 6d a lb if the distributors would handle it.” Australian butter was selling on the London market at 309 s a cwt (about 2s 9d a lb), and New Zealand butter at 310 s (2s lOd). the “Herald” pointed out. “It is estimated that at this price in London butter could be bought by speculators and reshipped to Australia, where it would sell profitably at 4s 9d a lb. “While the re-shipment would be a proposition in theory, in practice it would not be permitted. The Minister for Customs, who has wide discretionary powers in the re-admittance to Australia of Australian products, could refuse to admit it,” the report added.