PRICE OF BUTTER.

Manawatu Times, Volume XLII, Issue 1782, 7 April 1921, Page 5

PRICE OF BUTTER.

ANOTHER CONFERENCE OF PRODUCERS,

After a conference of butter producers, which was held in Palmerston North last week, had agreed that butter should be sold during tire winter at 2/2\ per lb in bulk at the factories or free on board or free on rail, and 2/41 for pats with Id discount for cash, the Imperial Supplies Department informed the National Dairy Association that it could not charge these prices and that butter sold at 1/114 per lb bulk ex factory door or at equivalent prices would receive a subsidy of 3d per 11) until further notice. The conference, in arriving at its decision last week, thought that the fixing of tho same price for bulk butter free, on rail or free on board as at factory would facilitate a uniform retail price of approximately 2/6 throughout the Dominion. However, the Imperial Supplies Department's intimation had tho effect of bringing about another conference yesterday amongst the producers to reconsider the question. Fully 100 dairy factory companies of tho Wairarapa, Wanganui, Southern Hawkes Bay and Manawatu were represented. Mr J. D. Brown, of the Kuku Dairy Company, Ohau, presided, and amongst those present was Mr T. C. Brash, an N.D.A. official, who has recently re. turned from a business visit, to America and England. Mr Brash explained to the meeting the latest developments in the butter market. The proceedings were not open to the Press, but a “Times” representative was afterwards informed that the conference did not decide upon a. price. Instead, a committee of five was appointed, -which will, in the course of a few days, journey to Wellington to act with delegates from other centres in New Zealand, at a conference to bo held with the Government. AN AUTHORITY’S OPINION. In conversation with a “New Zealand Times” representative an authority on the subject expressed the opinion that a mistake had been made in fixing the prices so high. He thinks that the alternative before the conferences are "reduction” or “stand firm to take the consequences.”

The Government, he says, has the whip hand and it is difficult to see how the factories can fight them.

His opinion is that the price should not have been raised above the 2/3 at which it stood, and he does not think the Government will let it go any higher, omitting the bonus. The Government could buy “Imperial” butter at, say, 2/, and pass it over to the retailers, who could turn it over to*the public at well inside the price the factories are asking. In fact, by operating on the Imperial butter the price could be kept at 2/3. The retailers, he considers, want too big a percentage out of the price dt the present time for the little handling they have to do, and he considers that some adjustment could be well undertaken there.

Another matter is that of the difference between the winter and the summer prijee. He has frequently gone into the question, and can see no good reason why valuation should be made. He thinks the producers here have been doing well enough—better than they hoped to do — to be content to let the general price run on through the off season. “I believe,” he added, reverting to the recent decisions, "the factories made a bad mistake. They asked too much. I don’t see how they can go against the Government as things stand.” MR MASSEY SPEAKS. IMPERIAL. GOVERNMENT WILLING TO SELL AT A LOSS. (Per Press Association.) WELLINGTON, Last Night. “Statements have been made,” stated the Premier, “that the Government is using the Imperial Government butter to force down butter prices in this country. This is not the case. The butter referred to is not our butter, but has been bought and paid for by the Imperial Government, but there was a great deal of dissatisfaction at the prices quoted at the beginning of the month. That, coupled with the fact that the Imperial Government was offering to sell its butter here on certain conditions, and at a lower price than that paid for it, had induced the New Zealand Government to request reconsideration of what appeared to have been agreed upon by the representative producers of some of the dairying districts. The matter was now in the hands of the Director of Agriculture, who was conferring with the producers. He would meet them in the course of a few days in Wellington.” , HEAVY DROP IN PRICE. REVISED RATES IN MELBOURNE. [By Electric Gable—Copyright.] [Aust. and N.Z. Cable Association.] MELBOURNE, Yesterday. Dairy produce merchants have decided on a reduction of the price of butter by 7id per pound wholesale and 8?d to 9d per pound retail. ADELAIDE, Yesterday. Representatives of tjho producing trades to-day reduced the price of butter by Bid per pouncf wholesale. The wholesale price of butter in Melbourne as vouched for by the “Australasian” of April 2, were as follows; —Factory butter grading 90 points, 274/ per cwt, with an advance of 1/0 per point to a maximum of 280/; second grade, 270/ to 273/: third, 265/ to 269/. Prime separators, 2/2 to 2/3Jd; medium, 2/2; dairy butter, 1/10 to 2/; and inferior, lower. Retail prices vary; but the fixing of the retail price at 2/3 had not been revolted. The reduction of prices as referred to in the above cablegrams is the outcome of a special meeting of butter interests held in Melbourne on Monday. . GOVERNMENT LOSSES.

The Imperial Government is not likely to make any profits out of its purchases of New Zealand butter this season, as when it first purchased supplies and returned to New Zealand butter producer* 17/ per cwt as their share —one-half —of the profits made on the transaction —that is, the difference at which the butter was bought here and at which it was ultimately sold to consumers. The probability is that the British Government will have a big carry-over of butter as well as of wool. This was foreseen by Mr P. C. Basche, in g.n address he made to New South Wales producers at a meeting- of the New South Wales section of the Butter Producers’ Pool. Mr Basche said that the problems before producers now were more acute than any they had to face during the war. There wore large food stocks all ovec Hie world,

yet owing to financial stringency people were starving. The British Government would have 50,000 tons surplus at (ho beginning of April, and stood to lose about £5,000.000. It was probable that butter would be retailed in London at 2/ from April 1. It was 3/6 a short time ago. He indicated a local reduction, suggesting 2/ retail. Mr C. E. D. Mearcs said a few months ago the British Government, indicated that it would not mind if some of the butter being placed in the Imperial pool were diverted elsewhere, but recently the Pool Committee received a definite request, to withdraw a large. quantity for local sale or other markets. The British Government had more than they knew what to do with because of largo quantities being sent over from Denmark and elsewhere, and the high prices limiting consumption. STOCKS IN NEW ZEALAND. British Imperial Government stocks of butter in store, awaiting shipment last month wore 3t7,fi89 boxes. These stocks were substantially increased by every pound of butter producers could get into store up to March 31, figures for which were not yet available. They are expected to show a heavy addition to the purchase up to the above date of 2,600,103 boxes of butter, for which £6,079,541 had then been paid, as compared with £2,420,297 for the whole of the 191920 season. MEMBERS TO INTERVIEW PRIME MINISTER. Four members of Parliament—Mr J. P. Luke, Dr A. K. Newman. Mr R. A. Wright, and Mr G. Mitchell, have arranged to interview the Prime Minister (the Right Hon. W. P. Massey) at 10 o’clock on Saturday morning on the question of, bVoad and butter prices to consumers.