PRICE OF BUTTER

Evening Post, Volume CX, Issue 122, 20 November 1930, Page 12

PRICE OF BUTTER

RESTRICTED RETAIL OUTLET

Ordinarily the rule, the lower the price the greater the consumption applies to the British butter trade, but it has been slow to move of late, and Alcssis. Samuel Page and Son, London, in a letter to Jlessrs. . Dalgety and Co., show how not only increased supplies from other sources, but tardy reduction of the retail price has told against the market for New Zealand butter. Writing loth October, Messrs. Page .describe the consumptive demand as "good," but evidently not good enough to clear stocks', at any rate, not good enough to make the .trade desire to buy other than on a hand-to-mouth policy. ' "It must not'be assumed that a fall in market quotations is immediately followed by a drop in the retail price. In fact, during the past twelve months, which has seen a downward movement of some 70s .■ per ■ cwt, the 'counter' price to the public has not at any time been reduced until some weeks after the market .fall has taken place. Over a long period the retail figure becomes more or less adjusted, to the general position, but at any given moment it lags behind. Consequently to-day, there is not the increased consumptive demand which might be expected to follow if finest Australian and • New Zealand were retailed at say Is 2d per Ib. : Generally speaking, it stands at the moment at Is 3d to Is 4d ia the larger shops, up to Is Cd iv the smaller, but here and there it is Is 2d. The shop-keepers defend this delay in reducing prices, by the fact that iv a declining market they are always caugLt with dearly bought stocks and. must theiefore make a little extra when they can." The Dairy Board reports a retail price of Is 2d per lb as on 14th November.