PRICE OF BUTTER

Evening Post, Volume XC, Issue 82, 5 October 1915, Page 9

PRICE OF BUTTER

TO THE EDITOR. Sir, — It is quite evident from the discussion in 'the House that the politicians do not understand the position rega'rdingthe price of butter. For 1 instance, Mr. Fletcher stated that it was the factories who raised the price, not the "merchants. This is quite wrong. When the retail price of butter in Wellington is Is 6d per lb the factory gets Is 3a. That is to say, the merchant takes Id for comI mission, etc., and the storekeeper takes 2dj making the retail price Is 6d. The I main difficulty is that there are too # many middlemen. In practically every •other town in the North Island except [ Wellington, the factories sell direct to the storekeepers, and when butter is retailing at Is 6d the factory nets Is 4d. In Wellington the merchants are determined to come into the business between the storekeeper and the factory, and this costs the consumer, another penny. When the retail price of butter was lsx 5d the factories selling direct to the stores were netting Is 3d, and were satisfied with this price ; but the factories supplying Wellington through the merchants were only receiving net Is 2d, a,nd v \yere of course dissatisfied. When the price advanced a penny- in Wellington, naturally other towns similarly advanced. The free on board price for export to-day is Is 3£d per lb. It costs a farthing to put the butter on board for freezing charges, and extra weight allowance for shrinkage, thus leaving net to the factory Is 3id. The factories supplying the stores direct net Is 4d locally, hence the public are quite justified in expecting the reduction of Id locally. Mr. Massey made the statement that the head of the Dairy Division, Mr/ Cuddie, held the opinion that the high price locally was justified. Yes, it is justified as long as the public will sit down quietly and pay 3d per pound to middlemen for handling the butter. What is wanted is that storekeepers should deal direct with factories. — I am. etc., FACTORY DIRECTOR. Wellington, 3rd October.