WINTER MILK PRICES

Evening Post, Volume CIX, Issue 92, 19 April 1930, Page 6

WINTER MILK PRICES

AND BUTTER VALUES HOW COUNCIL IS PLACED Several inquiries have been made since the announcement by the City Council that winter milk is to cost 7d per quart as to whether the price this winter should not be lower, in view of the fall in butter values. These inquiries were mentioned to the chairman of the Milk Committee, Councillor W. H. Bennett, who said that though on the face of it there was reason for contending that tho price this winter should be lower, the position was in fact not so simple. Mr, Bennett set out the following facts:— . 1. The cost of milk for summer season now ended has averaged less than one farthing per quart the average cost of last summer season, when it was higher than it had been for the three provious years. The reason why the average price is much above the price now ruling is due to the fact that the price of buttor-fat was comparatively high at the commencement of the season. 2. Tho cost of milk for this winter season will be less than, one farthing per quart below the ,cost of last season. Tho cost price of winter milk bears no relationship to the ciu'rent price of butter-fat, as the cost of winter milk is based on a guaranteed price of 33.3d per pound of butter-fat, plus an added value of 2^d per gallon, or, expressed on a gallonage cost on a 4.4 per cent, test, 17/4 d per gallon. 3. A reduction of one farthing per quart in the selling price of milk for the trading year just ended would have ctnirely wiped out our year's profit, and, indeed, have caused a loss to be made. 4. Wo estimate a loss of approximately £5000 during the ensuing winter season by selling milk at 7d per quart retail, and if this price was lowered by ono half-penny our loss would be increased by approximately £5300. "My committee and the department," said Mr. Bennett, "are resolved not to be again placed in the position if we can help it, whereby the council fixed a lower price than that recommended to it by the management, and by which wo were landed in a loss of £8500 during the winter period." ,