PRICE OF BUTTER

Grey River Argus, 2 December 1938, Page 6

PRICE OF BUTTER

Is 7d TOO HIGH Minister’s Statement MINISTER’S STATEMENT. WELLINGTON, December 1. A published report that some grocers were intending to charge one shilling and seven pence per pound for butter over the counter was brought under the notice of the Minister of Marketing. The Minister, Mr Nash, described this price as being altogether too high, and unfair, when compared with the rise in the wholesale rates. Mr Nash pointed out that the Government had to power to fix the price to the consumer as well as the wholesale price, but he added that, up to the moment, it had not contemplated any action.

RETAIL PRICE AT GREYMOUTH. Following on the increase of two pence per lb. in the wholesale price of butter, under direction of the Internal Marketing Department, the retail price in Greymouth was yesterday increased by two pence halfpenny per lb. The new retail rates are Is 6id per lb. for cash, and Is 7d booked. The Director of Internal Marketing has issued no ruling as yet fixing retail prices. The Minister of Marketing has described Is 7d over the counter as being altogether too high and unfair, Retailers explain the retail rise of 2id as compared with the wholesale rise of 2d as being due to wage increases, hour reductions and overhead expenses.

British Milk Trade MONOPOLISTIC PRINCIPLE. TO BE TRIED BY GOVERNMENT. WELLINGTON, December 1. Owing to opposition throughout the country, the Government is withdrawing its Milk Industry Bill, under which it had been proposed to establish a Milk Commission, with very wide powers for distribution by rrrilK monopolies in ten large areas. This was to be an experimental change, involving the disappearance of the small retailers. The Bill is to be presented in a new form later. ■

CHRISTCHURCH RETAILERS. CHRISTCHURCH, December 1. A new retail price for butter has not yet been fixed by grocers in Christchurch, but it is likely that there will be a stabilisation within a few days. In the meantime, there are different prices. The rise in wholesale prices which was announced by the Minister of Marketing, Mr Nash, will mean some rise in the retail price. The retailers do not fear that the increase will mean much curtailment in business, but every penny on the price means that there is a certain amount of economising by housewives. Retailers recall, however, that butter sold with little change in volume when it was as high as 2s 3d retail. The profit made on butter recently has been very modest, most retailers claiming that it has not paid expenses, but, as butter is a Ine which every grocer must carry, there is no escaping that position. In most parts of New Zealand butter has been at one time or another the subject of price-cutting, and at times, when price cutting has become fierce, grocers hajje had to sell below cost. With the fixing of the wholesale price, the retail prices in most centres have been stabilised, but competition among grocers has kept the margin of profit very low.