Butter Price May Fall Slightly

Press, Volume CII, Issue 30062, 21 February 1963, Page 17

Butter Price May Fall Slightly

(Hew Zealand Press Association) WELLINGTON, February 20. If the butter quota in Britain increased, the average price over the season could fall slightly, Lord Sainsbury, head of one of Britain’s biggest grocery chains, said in Wellington tonight. A similar suggestion was made recently by the chairman of the dairy section of Federated Farmers (Mr R. Woolerton).

Federated Farmers (M

Lord Sainsbury said that if the quota was increased as expected the extra quantity would have to be sold. In these circumstances it was unlikely that the current 315 s a cwt could be maintained.

The average price during the season could be down by 5s to 10s a cwt. he said.

He praised the quality, consistency, and good marketing of New Zealand butter in Britain, and disagreed with suggestions made by others that the butter suffered in competition because of its rich yellow colour. He said the butter had established its reputation and people bought it for that reason.

Discussing lamb prospects —his 260 branches have been selling Canterbury lamb in preference to other kinds for years—Lord Sainsbury, said that although the market would be subject to fluctuations because of price, competition from other meats, particularly broiler chickens, he could not see great diffi-

cullies in its disposal on the British market.

He had a word of warning for anyone thinking of building up a broiler chicken industry for export—“don’t.” In spite of the increased demands, producers elsewhere had discovered this was one of the easiest areas in which to overproduce with consequent unprofitable returns. Lord Sainsbury is making his first visit to New Zealand, where his firm buys about £6 million worth of produce a year. He is here partly on holiday and partly tor an opportunity to discuss problems with leaders of the dairy industry and the Canterbury Frozen Meat Company, with Which his firm has had a long association.