WHEN BUTTER IS DEAR

Evening Post, Volume CVIII, Issue 111, 6 November 1929, Page 14

WHEN BUTTER IS DEAR

TREACLE IN DEMAND

~2ilv.iV.. V. Knox, chairman of the Colonial Sugar Helming Co., turned an interesting oblique sidelight on the influence of the I'aterson Plan on the price of butter in Australia. He remarked that "our deliveries of relined sugar during the 'halfyear again show no increase, and we are still in doubt as to the cause of the slightly smaller consumption. : But there has been a stroug demand for syrup, as has been the case before when many people were out of regular work and a cheap substitute for butter was sought." The only inference to be drawn from this statement of substitution of treacle fur butter is.that the Pnterson Plan has put the price' of Australian-made butter beyond the reach of the majority of consumers, and, in addition, the increased duty of 8d per pound on imported butter has effectively prohibited Australian consumers being supplied at a loiver price out of New Zealand's abundance.

Mr. C. P. Agar, an authority on the New Zealand dairy export trade, as president of the Associated Chambers of Commerce, at the recent conference in Auckland, briefly explained' the Paterson Plan as applied to butter. He said it represented protection of Australian dairy farihers to cover the increased costs which they are called upon to pay because of the high protection granted to secondary industries. Butter is. sold throughout the local markets of Australia at 4d per Ib in excess of its exportable value. The money so obtained is used to pay a grant or bounty on its exportable surplus, so that the primary producer in Australia receives the world's value for-his produce, plus a grant to cover his increased costs brought about by tariff protection to secondary industries. "In my judgment," added Mr. Agai", "the time has arrived when any additional tariff protection to secondary industries must be offset by a corresponding relief being afforded to primary producers."

Some idea of the disparity in the price of Australian butter in Sydney and in London as on Ist November is shown in the following prices:—London, finest Australian,, 174s to 178s per cwt; Sydney, finest Australian, 210s to 214s per cwt. The Sydney price includes 2s 6d per cwt extra for boxes and cartage. The London price includes boxes, ocean freight, wharfage, dock dues, insurance, and commission, and all other charges involved in putting the produce on to the London market. ~