TOWN MILK

Evening Post, Volume CXXXIX, Issue 47, 24 February 1945, Page 9

TOWN MILK

VENDORS' MARGINS

RETAIL PRICES UNCHANGED

"This completes the price structure for the town milk industry," stated the Minister of Agriculture (Mr. Roberts) last night, when he announced the margins on which vendors and milk treating houses will operate in the collection, treatment, and distribution of town milk r He explained that action was being taken in terms of Section 6 of the Marketing Amendment Act, 1937, and no increase in household- prices was involved. The margins apply as from March 1 to the milk districts of Whangarei, Auckland (metropolitan), Hamilton, Rotorua. Tauranga, Gisborne, Napier, 'Dannevirke, Palmerston North, New Plymouth, Wanganui, Nelson, Christchurch (metropolitan), Timaru, Oamaru, Dunedin (metropolitan), Balclutha, Invercargill, and Westport. As additional approved producer organisations are formed the application of these margins will be extended to other areas.

"The margins, based on the findings of the 1943 Milk Commission, define exactly how much may be allowed to vendors and treating houses for the various processes involved in getting the milk from the producer' to the ultimate consumer," said the Minister. "The retail prices are defined by price order. Consequently, the price payable by vendors when buying their milk from approved organisations of milk producers is determined by deducting the margins from the retail prices. "These approved organisations of producers will be able to obtain, through the Milk Marketing Division, any difference between the prices actually received from vendors and the national milk prices as communicated to the industry on October 27 j last. Treating houses will pay producers' organisations the national town milk producer prices, and any difference between the margins allowed and the prices actually received from vendors will be obtainable through the Milk Marketing Division. FRONT-GATE DELIVERY. "Only members of an approved producer organisation qualify for the additional payments provided for in the national town milk producer prices. Town milk producers who are not members of an approved producer organisation are not permitted to increase their charges to vendors, and vendors are not permitted to pay more to these producers than the prices at preseni defined under authorisations of the Price Tribunal. The margins are based on front-gate delivery, which is already the standard practice in main centres. This form of delivery keeps down the cost of distribution and saves labour. DETAILS OF MARGINS. Details of the margins (per gallon in each case) are:—Chilling by mechanical refrigeration .33, pasteurisation 2d, bottling 2d (increased by a gallon in centres where consumers do not atpresent pay for bottles), delivery by a treating house to vendor's depot Jd, collecting by vendor from treating house £d, delivery from vendor's depot to household, front gate 9d (increased by £d a gallon in Auckland, where special circumstances exist), delivery from vendor's depot to shop dairies 3£d, delivery, to wholesale users (hotels, etc.) 3£d to s>}d, according to quantity delivered. "Allowances, additional to the margins, are provided to cover the cost of collection from farm gate to vendor's depot or treating house," said Mr. Roberts. "These vary from .875 d a gallon to l|d, though for most dis-* tricts a standard allowance of- ld a gallon has been adopted. An additional margin, not exceeding ld a gallon, may be granted by the Minister of Marketing, where a vendor, supported in his claim by the local vendor's association, proves he is operating under special financial hardship." Putting the price structure into force, added the Minister, is now possible through the coming into existence of approved producer organisations able to guarantee the vendor an adequate ali-the-year round supply of good quality milk for distribution to the public. The producer is assured of his price, the vendor knows exactly the margins v/ithin which he is operating,, and the price to the consumer is defined by price order." ' CENTRAL MILK COJJNCIL. This week's Gazette announced that under the Milk Act, 1944, the follow- i ing have been appointed to be members of the Central Milk Council for a term of three years:—-Messrs. M. E. Lyons, secretary, of Christchurch (rePresenting the Municipal Association of New Zealand); K. K. Montgomerie, farmer, of Mangere, Auckland (representing town milk producers); C. J. McFadden, farmer, of Christchurch (representing town milk producers); Dr. Muriel Bell, nutritionist, of Dunedin (representative of the interests of women and children); and Mr. H E Combs, M.P. for Wellington Suburbs.