THE LOCAL MARKET

Evening Post, Volume CXXII, Issue 31, 5 August 1936, Page 12

THE LOCAL MARKET

BUTTER MAY COME DOWN

REGULATING" FLOW

BENEFIT TO CONSUMER

Inquiries made in official circles today indicate that the moment the new season's butter comes into competition with the' butter of the old season, the lower price of the new season's butter will have its effect on the local market price. As the exporter is to receive under the Government's guarantee twelve and nine-sixteenths pence per pound and as it costs about one farthing a pound to pat and wrap butter the local market return on an f.o.b. basis will be equivalent to about twelve pence- and thirteen-sixteenths per pound.

If local distributors try to get more than this there is a likelihood of the exporters diverting their produce to the local market, and thus the price on the local market will be kept down owing to the volume offered for sale.

It is ' considered that the local price of butter will drop between twopence and threepence abound unless there is a move on the part of dairy factories to regulate the flow to the local market. It is considered, however, that the Government will not allow this to be done, as it desires to see the consumer get any benefits that ■ may flow from its guaranteed price scheme.