THE PRICE OF BUTTER.

Lyttelton Times, Volume CXVII, Issue 17311, 28 October 1916, Page 7

THE PRICE OF BUTTER.

TO THE EDITOR. Sir,—The Board of Trade has been informed by medical men that " butte* is an absolute necessity in the home, and that many children are not receiving the quantities requisite for their proper physical development." -, On the advice of the board the Government has gone in for a'complicated scheme to fix the maximum wholesale price of butter for consumption in New Zealand lat 149 s 4d per cwt, or Is 4d per lb, and to compensate the dairy factories for this low price (t) to put a tax of Jd per lb on butter-fat, out of which the price of the home consumed butter would be equalised to the sellers, with that of the exported butter. The board considers that the retail price of butter in New Zealand should be " in the vicinity of Is 7d per lb." Now the London wholesale price of New Zealand butter last week was 200 s per cwt, or Is 9d per lb. That is " in the vicinity of Is 7d per lb." Most people will agree with me that the summer retail price of butter in New Zealand should Be in the vicinity of Is per lb. In 1913 the London wholesale price of New Zealand butter only averaged Is Id per lb. If there had been no war probably the competition of South America, Siberia, etc., would have reduced the price. In the threo pre-war years, 1911-12-13, the average export of New Zealand butter was about 350,000 cwt, valued at nearly £2,000,000, which was under Is per lb, free on board ship. At that price our New Zealand dairy factories wero very prosperous. IY>r the year ending July 31 last our butter exports were over 405,000 cwt, valued at over £2,800,000, or neadry Is 2d per lb. I believe the value was very much under-estimated, but at 2d per lb more.than the pro-war price that gave, an export war profit of some £378.000 to the dairy fanners and butter merchants. Besides this there was probably a greater profit on the butter consumed in this country. That is estimated, normally, at 201 b per head. At 2d per lb the war profit on the butter consumed in New Zealand would be about £170,000. This makes a total war profit, surplus profit, excess profit, or excessive profit, of altogether about £550,000 on butter for the benefit of dairy farmers and merchants. On the other hand it is equivalent to a war tax on the people—'(or a muzjjle I) If the wholesale price of butter in New Zealand is to be Is 4d per lb, that is 4d per lb more than the average value, f.o.b. in 1911-12-13. At 201 bof butter per head that is a war tax of 6s 8d per head on butter only, for the benefit of butter factories and of butter merchants—beyond what they were perfectly contented with before the war.

The Auckland Farmers' Union " fails to see any reason why butter should be singled out for special treatment." I quite agree with them. Tho Government wants millions for war expenses. Why should not the Government take all war profits to pay wax expenses? A Bcientifio war tariff axiom should be, "All war profits for war expenses." The money must be got. How could it be raised in a fairer way? Why should not the Government fix the price of butter both for export and home use (wholesale) at Is per lb? And take the profits? And reduce the cost of living? Why should the people of New Zealand pay English prices for the produce of this country? The value of our ex. ports of wool, cheese and meat alone is from.2s to 60 per cent higher than before the war. Possibly wool will be 100 per cent higher. So up goes the price of cows and sheep and land. War prices mean inflatiou which results in collapse. When so many of our men are losing their lives, their health, their limbs, their eyesight, is it a time far people to be making huge war profits? —I am, etc., J. MILES VERRALL. Swannanoa, October 25, 1916.