MUNICIPAL MILK

Evening Post, Volume CVI, Issue 47, 24 August 1923, Page 6

MUNICIPAL MILK

PRICES FOR PRODUCERS

DECIDED BY ARBITRATION

CITY WILL PAY MORE FOR

SUPPLY.

It has been known that for some time past the Milk Committee of the City Council has been endeavouring to come to an agreement with the producers of the milk supplied to the city as to.future prices. The parties were unable to agree on several points, and these were left to be decided by arbitration. The arbitrator, Mr. A. F. Roberts, yesterday afternoon announced his decision on the points pertaining to the supply of milk and prices payable for it for the ensuing year upou which the representatives of the City Corporation fmd the Wellington Dairy Farmers' CoaPreem °ClatlOn h"d bee° U"abl° to reacil The main points of his award are as follows:— 1. The minimum standard of quality of the milk to be supplied is to remain as at present. 2. The price to be paid for the milk throughout the year shall be based upon the butter-fat content thereof, and the basic prices ruling in the following proportions:— (a) The local parity of London cheese, 50 per cent. , <b) T£? local parity of London butter, 25 per cent. (c) Local butter, 25 per cent. 3. To the basic price payable, as aforenoted. is to be added for the period of the contract, the sum of five pence (sd) per 10.31b gallon of milk supplied -to cover: (a) Cost of transport to the city. (l>) The loss of by-product (skim milk or whey). > (c) Compensation for producing milk of the requisite standard of quality, etc. ' - " " : 4. During the winter season of four months (16th April to 15th August) a premium of 85 per cent, is to be added to the average basic price as ascertained for the preceding summer season of eight months, with provision that such basic price shall be not less.than eighteen pence (18d) per' lb of butter-fat, WHAT THE AWAED MEANS. The chairman of the-Milk Committee (Councillor W. H. Bennett) in commenting upon the position, when interviewed, pointed out that the award provides as follows :— 1. For the value of milk to be appraised on a combined butter and cheese market in equal proportions, whereas last year s agreement was based entirely upon local butter prices, and as the prospects of the relative markets for the ensuing season seem to favour. cheese- ■ the price of milk is likely to be affected accordingly. 2. For the payment, over and above the price of butter-fat, of an added vale of fivepence (sd) per gallon.- whereas in last year's agreement such added value was twopence half-penny (2id) per gallon. 3. For the payment of a winter premjum of 85 per cent, on the summer basic priced as,against. 100 per 'cent. _paid during last season. 4. For a guaranteed basic price of 33.3d; per lb of butter-fat for the winter season, as against 17d per gallon for lastyear, which on a 4.4 test, equal 38.64 d per lb of butter-fat. BETTER TERMS FOR WINTER MILK. It will readily be seen., said Mr. Bennett, that the decision of the arbitrator favours the producers as against last year's agreement with the corporation, as affecting the payment of added value, but otherwise the award is slightly in the council's favour as applied to price of winter milk. In answer to an inquiry as to how the award is likely to affect the selling price of milk in the future, Councillor Bennett pointed, out that it was quite impossible to forecast the cost of milk far ahead, for the reason that the basic price was dependent upon a fluctuating market for both butter and cheese, but he said that, apart from the basic price, the arbitrator's award was likely to cause a slight increase •in the selling price of milk and cream. The present price of milk is fixed at 7£d per quart until the end of next month, after which the summer price will be brought in and same will in due course require, to be determined.