BUTTER PRICES

Dominion, Volume 31, Issue 33, 3 November 1937, Page 8

BUTTER PRICES

World Markets And Local Costs “HANDSOME SUBSIDY TO PUBLIC” Commenting on remarks made last Saturday by Major J. R. King, of Sydney, chairman of directors of Empire Dairies, Ltd., in respect to the guaranteed price for dairy produce, Mr. A. P, O’Shea, Dominion secretary of the New Zealand Farmers’ Union, stated yesterday that the submissions of the New Zea tend Farmers’ Union had now received support from an unbiased outsider, and that Major King had uttered a timely warning about the high internal costs of New Zealand. In connection with the high price at present ruling on the London market for butter, Mr. O’Shea pointed out that this price left no room for accusations that the dairy-farmer was being assisted by the public of New Zealand. On the contrary, the public of New Zealand' were receiving a very handsome subsidy from the dairy-farmer, because they were buying butter at the guaranteed price which was considerably below the world market price. It would be interesting to find what the dairyfarmers of New Zealand had lost by supplying the local market at less than world price. It should be stressed also that on the present price it would not be very long before the overdraft remaining in the dairy account for last year was completely extinguished. The fact that butter was being sold in New Zealand at less than London price also completely removed New Zealand from the reproach made by farmers in Great Britain that butter was being dumped on the London market at a price less than that which was charged in its country of production. This applied in the case of nearly all the larger suppliers of the London market except New Zealand. If the prices for butter in New Zealand were brought into line with the prices obtaining in London at the present time it would be costing about 1/6 in the shops of the Dominion to-day. Though the price for butter sold in New Zealand was lower than the London price, the dairy-farmer still had to meet the high production costs.

Major King stated nt Auckland that he sympathised with the New Zealand dairy-farmer in having to accept the low price fixed by the Government, for his produce. “It amazes me,” he said, “that the guaranteed price has been accepted so quietly when butter in London is now bringing 150/-.”