Butter to rise from today

Press, 7 October 1980, Page 1

Butter to rise from today

PA' Wellington The price of butter will rise 16c a kilogram today, increasing the price of a 500 g pat from 79c to 87c. Speculation has been rife about the price of butter, increased by the news that the board’s returns- from- the British market will improve soon. However, according to a Dairy Board , statement, the board does not expect to - receive returns- from the New Zealand market equivalent to those earned in Europe. “If that were the case, • the price would go to ; about $1.50,” the statement said. “On the con- ' trary, the board is anxious Ito ensure that the New • Zealand consumer receives •butter at the most econ- • omic price which the in•dustry can afford to ’accept, and realises the .’challenge to its domestic •'market from margarine ‘and other substitutes. f • * “However, the price -the New' Zealand con'sumer pays for butter rep- • resents a substantial por- : tion of the reward the ’ dairyfarmer receives for -his labour. The dairyfarmer suffers cost increases ‘like everyone else. • " “What has really caused •the rise is not the return • for butter overseas, - but . the cost of producing it in New Zealand. It has been ; decided to raise the price, -because speculation is bad • iri,-titself, and the board cleariy cannot continue to : supply /at the lower ■ price?’ ,