PRICE OF BUTTER.

New Zealand Herald, Volume LVIII, Issue 17753, 12 April 1921, Page 6

PRICE OF BUTTER.

CASE FOR PRODUCERS.

POSITION UNDER REQUISITION

PRODUCTION DURING WINTER

[BY TELEGRAPH.—PREiS ASSOCIATION]

I i WELLINGTON. Monday. i Statements made to the Prime Minister : by the recent deputation of Wellington I members of Parliament are contradicted ,j by Mr. T. C. Brash, of the National j Dairy Association. He says the state- . I ments are calculated to prejudice the j producers in the eyes of the consumers, : and that anyone with a knowledge of the ! facts of the case must recognise that the producers have not attempted to take an | unfair advantage of the public. Mr. j Brash replies categorically to the state- ' ments made. Ho says instead of the butter producers claiming: the whole market value during the war, they were compelled to accept a requisition price below the world market value. The Imperial Government made a profit of £4,000,000 in two years on the handling of New Zealand butter, while it made a heavy loss of £4,500.000 ou the purchase at 2s 2d, and the sale at Is sjd of cheese from English and (Scotch producers. This loss was largely made up by profits on colonial produce bought, at prices below the world's market value. Even under tlio recent contract the Imperial Government did not undertake to pay the world's market price. Thus the local consumers not only did not pay the world's market price, but they did not pay the full parity of the Imperial Government's I quotation, because the consumers here i were subsidised by the Government to the eitent of 6d per lb. As to the statement that dairy farmers engaged in supplying factories milked their cows for a definite period and that the cost of winter production really did not enter into the question at all, Mr. Brash replies that as a matter of fact the position is that in conferences and negotiations between the producers and representatives of the Government it was agreed that sufficient butter for the local market could be made after April 1, on the understanding that the price would j a-ssure an adequate return to the producer*. The consumers know well that the price of winter butter has been always naturally higher than the summer price. On this occasion the producers, by agreeing to accept 2s 2£d for bulk butter and 2s 4d for pats, are willing to take less | than the summer figures, but they believe ■ that they should not be asked to make a '■ further reduction. They have gone as far j as they can be reasonably expected to go. j The consumers can surely see for themj selves that compulsion on the producers ito accept less than a fair price must I react unfavourably on the consumers i ultimately. If producing industries are I injured, the evil effects are quickly felt j and suffered in the cities.