PRICE OF BUTTER

Evening Post, Volume CIX, Issue 149, 27 June 1925, Page 13

PRICE OF BUTTER

COMPLAINT AND EXPLANATION

"A.J.T.," in a letter to the Editor of "Tho Post," asks :—

Where is "export parity" now as a basis for the price of butter in the local market? For the paßfc four months tho local top price has been Is 8d per 1b retail, tho retail price being Is lOd. •Here are the .High ' Commissioner's cabled prices for New ZealandbuCEer, choice quality, and with them "the Wei-'----lington retail prices :—

14th March, 1775, equal Is 4£d f.0.b., local price Is Bd. 4th April, 1655, equal Is' 3jd, local price Is Bd. - 30th May, 1655, equal Is 3£-d, local price Is Bd. . • '

13th June, 1795, equal Is sd, local price Is Bd, 22nd June, 180s to' 182s, equal Is 5Jd to Is sid; "other, qualities," 156s to 1765; equal to Is 3d to Is 4jd; local prico Is Bd, now Is lOd.

.This;: withi;2o,ooo';tons ]:: of ':■ butter^ mostly New I:Zealand, -held 1 in.. London .and..4000 tons • held yin ?New Zealand-for a rise/.: The figures I : quote are .official, ' arid" carry.' their own: comment..' But; let the ' farmei 1, let ; tli6;-farmers'; raera-^ bers ml Parliament/ consider- the probable effect "of.', these ''speculative '■ manipulaClons" of. the producers when' the time,.comes for; considering votes'in the' : special... and .exclusive: interest s of farmers !-"'■■ ;■;.. - - V-.-.--.V'. ■■■^.V ...i'-■'.:"'. <:'■'.:. -'i'".. .V.■" ''

DAIRY BOARD NOT RESPONSIBLE

v The :letter.formed .the.subject of >;iliquiries'made.:by' "The; Post" with the result that, the 'Dairy Produce Control Board was unable: to discuss the matter, as it .was .only concerned with .the export trade. ,\ A . merchant said ■ there were.offers going, in New' Zealand to-day, of Is'6id per pound for "butter, and 9d for.cheese, for. shipment; 'Home during the next twojinonthsi and he.doubted" if,;: factories; would rush at' those nrices. ; ; Tn : these., circumstances, .the local price dfi Is lOd retail for butter was not too. High. /Another.: authority held that the; case was reasonably put by the correspondent—there . ought' to have .been, lower .prices:-ruling iwhen prices were lower for the export;trade. The/fact-was that it was;not the farmer j who. was. responsible for', the price, but the. merchants', who; were t .eager to get the butter,;and to:do so arranged amonf; j themselves ;the-market price, and bo. put up the best proposition they : could to I thefarmer in.brder to ensure supplies. ; ■ ■ BTJTTERHELD FOR A BISE. :,-■ An exporter, commenting on; the figures quoted, said; that .'although they might-be as the .writer' of the. letter stated,: yo t there/was -no business pass-. ing: at those prices, riot 'in New Zealand butter, for it washeld in London, and still ..being held there, and there were stocks in New Zealand, held ■ for ' a substantial rise in the market, which v was anticipated would take place in the autumn at .Home.' It was incorrect to say' that -New Zealand "butter was sold cheaper -in London than :in New ■. Zealand; because it was hot being sold, v no matter .what the-prices quoted would Show. ,■".'.-; '•,■"■. ■;'. ■'■-.'. ,'..... : . ;......;

A grocer in .a .large "way of business said a nsewas expected, but 2d was too much. .; The margin of 2d per pound was'nob. excessive for the retailer. At Is 8d it was but 10 per cent., and that was not sufficient upon -which t o run a grocery business. At the same time/ there was no doubt about it that the consumers should hav o : had. the benefit of the low prices of. butter that have been ruling for export,, if the parity primcipal is to be fair for -both consumer pected to meet the market when the price is high he should, have the advant age of the market when the price is W He lias:not had that in butter this sco-