THE PRICE OF MILK.

New Zealand Herald, Volume LVIII, Issue 17909, 11 October 1921, Page 8

THE PRICE OF MILK.

CHARGES COMPARED.

AUCKLAND VENDING RATES.

HIGHEST OF THE CITIES.

Considerable differences exist between the prices of milk, both wholesale and retail, in the four cities. The Christchurch retail price of 6d a quart is the lowest in New Zealand and the Wellington maximum of 8d the highest. The lowest wholesale rates prevail in Christchurch and Auckland, varying in the former city from Is 2d to Is 4d a gallon, and being stable in the latter for the summer at Ls 3d. The margins allowed the distributors are as follow:—Dunedin. 4d a gallon; Christchurch, 8d to 10d; Wellington, 7d j and Auckland, Is 3d. The prices are:—

, Retail. , Wholesale. Dunedin ... 2/4 gal. 2/- sal. Christciiurch. ... 27- gal. 1/2 to 1/4 sal. Wellington ... 2/8 gal. 2/1 gal. Auckland ... 2/6 gal. 1/3 gal. Of these figures there is no possible method of forming a true estimate of the position. The divergence is so great that it seems that more than matters of climate and distance affect the position. The figures may be subject to slight alteration owing to conditions as to the payment of freight, etc., but the increase or the reduction cannot be very much per gallon. Yet in Auckland the distributor charges 100 per cent, on the wholesale cost against* 16 2-3 per cent, in Dunedin. The agreement made in Auckland between the producers and the vendors was that milk should be supplied at Is 3d a gallon during the summer period and at Is 6d during the winter period, the understanding being that the "retail price was not to exceed 8d a quart at any period of the year. Thus, when the wholesale price of milk increases to Is 6d a gallon, the retail price will not exceed 2s Bd, a margin of one penny a gallon less._ This, however, is a very email concession to the consumer, who, on the figures of the Southern cities, has some reason for asking why he should pay 100 per cent, on the wholesale cost during the summer months. This rate has not been fixed by the Board of Trade. The agreement, was reached between the producers and the vendors. The board, however, still exercises its general functions over prices, and would doubtless investigate in the ordinary way any complaint as to the retail price of milk. So far no complaint has reached it.

The prices ruling for butter-fat should have a bearing upon the price of milk, but not to the extent the casual observer might think, because contracting for the supply of milk to vendors involves winter milking, which, in turn, involves costs in respect to special feeding, which the ordinary dairy farmer does not have to carry, and also arrangements at some cost for a certain number of winter milking cows. But the quarrel of Hie consumer is not with the producer, whose prices compare very favourably with those of Southern producers, but with the high charge for vending. At the conclusion of the agreement between the producers and the vendors, Mr. W. H. Madill said that the consumers had been saved at least Id a quart for four months cf thr- ■ i-ar. It was notorious, however, that the cost of distribution was out of all piopjrticn to the cost of production, and he was afraid that until some up-to-date system was evolved the retail price could not be lower than that agreed upon. In Wellington the municipality is engaged in the milk business on the wholesale side. The producers from whom it buys fare much better than the Auckland producers. The price paid by the council during the months of May, June, July, and August is 2s a gallon delivered in Wellington. During the six summer months the price is based on the highest rates ruling for butter-fat at the factories, and for the two autumn months the price is increased by 2d more ™°r gallon than the bntter-fat rates. This scale of prices will continue until next August, when tenders will be called for the supply of milk to the council, and a new system of distribution will be put into operation.