Retail Potato Prices In City Too High ?

Press, Volume CI, Issue 29844, 9 June 1962, Page 10

Retail Potato Prices In City Too High ?

[By Our Commercial Eaitor]

Main crop potatoes for which the grower was paid 21d to 2ld per lb are being sold in Christchurch shops at 6d per lb. The current price to the grower is £2l to £23 a ton (21d to 2Jd per lb), according to Mr M. P. H. Rousham, executive officer to the New Zealand Potato Board. In ton lots, potatoes have fetched £25 to £26 a ton (2Jd per lb) at auction in Christchurch this week. These prices represent a mark-up of 13 per cent, to 19 per cent on prices paid to growers. Auction prices for potatoes in sugar bags have been from 10s to 16s (2Jd to 3Jd per lb > Retailers of large quantities of potatoes normally purchase their requirements at auction by the ton. Price tickets on potatoes in greengrocers’ and grocers’ shops in the central city area yesterday all showed the price as 6d per lb, or Is 6d for 31b. One chain store quoted 6d per lb, or is 3d for 31b.

At 6d per lb. the retailer is working on a gross markup of 124 per cent, if he bought at £25 a ton, or 75 per cent. if he bought at 16s a sugar bag. Under price control, mark-

ups of. 10 per cent, to the merchant and 33 1-3 per cent, to the retailer were allowed. Apply these mark-ups to a price of £23 a ton to the grower, potatoes would retail at 3jd to 3Jd per Lb. At 4J per lb the retailer would still have a margin of 311 per cent (on 16s a sugar bag) to 68 per cent, (on £25 a ton) to cover his costs.