DAIRY PRODUCE PRICES

Greymouth Evening Star, 6 August 1936, Page 2

DAIRY PRODUCE PRICES

SOUTHLAND DISAPPOINTMENT.

[per press association.]

INVERCARGILL, August 5. That, the dairy industry in Southland is not at all pleased with the prices fixed for dairy produce was made clear by the comments to-day ol | men competent to speak on beha 0 i factory directors and suppliers. I “I am disappointed, and I am afraid the dairy farmers will be very dissatisfied,” said Mr. John Fisher, chairman of the Farmers’ Dairy Federation, Ltd. The fixed price was not quite the equivalent of tho current value on the open market to-day, and sales of the, back end of Southland’s cheese mako ( were made from 7d to 7Jd, f.o.b. 1 - average payout of the Southland ac torics for the season just ended vas 1/- to 1/0-1 on cheese, and lid or peihaps a little better on butter. His] opinion was that the increased costs of production would more than iron out any advantages to be gamed fion the Government’s prices. They meant that at the end of this season the supplier would be down slightly on his returns for the last season. Probably 1/11 to 1/2 would be a paying price in Southland for this season, and 1/* would have meant good times.

OTAGO OPINION. DUNEDIN, August 5. While the question of wages and hours in dairy factories—as yet undetermined— will play an important part in the determination of the pay-out under the price guarantee, authorities here are definitely of the opinion that in tho South Island it will not reach 1/-. It is pointed out that conditions are totally different from those in the North Island. Factories here are working over scattered areas to collect supplies. In Otago, some supplies are taken forty miles by motor and then railed 140 miles, while in the North Island contact is closer, perhaps an average of fifteen miles, so that the difference in costs is large.

AUCKLAND PRICES.

AUCKLAND, August 5

The wholesale prices for butter in Auckland have been reduced by lid per lb. The net rates, from to-day, will be: Finest grade 1/2 per lb.; first, 1/ll.d; second, 1/1. As the guaranteed export price has been fixed for the season, the local rates, which are based on this price, will also be stabilised. The retail prices are, generally, 2d per lb. above the wholesale rates, although some stores work on a smaller margin. No control is exercised over the local market, but the Government has the power to regulate the domestic prices, if it wishes.