BUTTER PRICES

Evening Star, Issue 17484, 15 October 1920, Page 2

BUTTER PRICES

WELLINGTON" GROCERS DISSATIS-

[Pas United Press Association.]

WELLINGTON, October 14. The retail grocers do not approve of the recommendations as to price made by the Butter Committee. Mr H. D. Bennett (president of the Master Grocers' Association), who was deputed to give evidenca on behalf of the grocers before the committee, made a statement on the subject to-night. It is regretted, he said, that tho Butter Committee have paid no heed to the evidence submitted to them by representatives of the retail grocery trade, and that, having ignored it, the committee have made recommendations which are positively ridiculous in the seyes of commercial men. Tho 'proposal to' allow 2d profit for-cash sales at 2s 3d is equal to 7.4 per cent., while the cost of running a grocery business, according to evidence submitted to the committee, is now 18 to 20 per cent. The stupidity of the proposal is in an allowance of so "much as 2d for booking. Grocers did not ask for as much as this, and the trade cannot possibly charge its customers that amount. Why the committee have made such a recommendation is beyond our understanding. The chairman of the Butter Committee is reported as having, said that the price at the factory door would work out at Is and that would leave a good margin of profit for the retailer. The chairman knows quite well that that is not the case. The recommendation means that the price at the factorv door will be nearer Is lljd in bulk. Then the wholesale distributor will come in with his freight, packing, and profit, which will amount to not less than making the retailers' cost 2s Id The retail grocery trade throughout the country are not prepared to do business on these conditions, and if they are compelled by insurmountable circumstances to do this, then they must increaso the price at once in many other lines to make up the loss If the outside price is to be limited to 2s 5d booked, then 2s 4d for cash would make it at least a commercial proposition. Unless Parliament makes an attempt to improve the position, there is no doubt that a Dominion conference of grocers will be called forthwith, and I would not like to say what they might decide to do.