Sugar Price “May Go Up Further”

Press, Volume CII, Issue 30143, 29 May 1963, Page 16

Sugar Price “May Go Up Further”

(New Zealand Press Association)

DUNEDIN, May 28.

The retail price of sugar was likely to rise still further, the chairman of directors of Cadbury Fry Hudson, Ltd., Mr C. V. Smith, said in Dunedin today.

.“You can’t make any prophecies’,” Mr Smith said, “but we feel the price is likely to go up still further.”

Mr Smith said he viewed with “grave concern” the recent price rises in 'sugar. "Naturally we use a large quantity of sugar in the production of confections and biscuits An increase in the price of sugar means we have either to absorb it or pass it on to the consumer or try to do a little of both.” Mr Smith said The sugar increases had already caused a rise in the prices of some biscuit and confectionery lines, he said. Mr Smith said the present increases and those likely were the result of not having a contract with sugar refineries

“In the past, when sugar was relatively cheap. New Zealand enjoyed the bene-

fits of low prices without being tied to a contract price.” Mr Smith said "Now tha* the price has gone up. our orices must also rise.” Mr Smith said New Zealand was paying approximately £B5 a ton for sugar a.t the moment. compared with Australia where the contract price was £79. The latest increase has put the price of sugar at lid per lb against the old price of lOd per lb.