LOCAL BUTTER PRICES.

New Zealand Herald, Volume LXVII, Issue 20721, 14 November 1930, Page 14

LOCAL BUTTER PRICES.

Sir, —Your correspondent, Mr. V. Alexander. arid others appear to imagine that all that is necessar-J is to charge consumers Is 6d or Is 9d per II). for the butter and that would solve the problem so far a s local sales aro concerned. But there is more in it than that, because in the firs' place the small dairy companies would probably sell all their output at the local price and return a good thing to their suppliers, while the big company, which depends on tho United Kingdom market could only sell locally a very small pen! tjon at tho Is 6d or Is 9d and tlu» bulk would bo sold overseas at, sav. 11,] per lb., returning, say, an average of 1? to the suppliers of the big company, against 1> 6d or more to the small concern. Let the Dairy Control Board take charge" forming a pool of, say, 20 per cent, of the output of every dairy factory in X<>\v Zealand, and supply the local market under one brand. L.W. Kohekohe. Sir,—Let iis keep pegging away at the good work started by Mr. W. E. *O. _.\]ov.. ander and continued by Mr. .T. Thornes I happen to be one oi the numerous family of small grocers being' gradually crushed by the unfair tactics of the butter cutters. That the public are in sympathy with tho farmers is so strikingly evident to many of us that it almost seems as jf he has only to lift up his voice to find the remedy. One of my customers, [laying tne Is 2d for superfino butter (lie other day, said "I would much rathe,• pay Is 3d for it and know the farmer was prosperous." .As Mr. Thornes sav*. the country will surely go with him when his back is absolutely broken. 1; has often occurred to me, too, that tU economic side of butter distribution is all wrong for tho fanner. Butter should L superfine, first and second, and sold direct to tho grocers at, I suggest, an fdl-the-year-roußd price of Is Bd, J--, 6d and Is 4d per lb. There should be * rebate of 2d to the grocers, their profil. if, and only if, they maintined the retail price of Is Bd, Is 6d and Is 4d. FRIENDLy GROCER. Sir.—ls the time not long overdue for the farmers, through their union or other organisation, to set out tho rules and regulations on proper business lines, )e----garding tho price at which butter consumed locally should bo sold ? I do not advocate any prohibitive or unduly high price, but such a price as will allow the dairyman a reasonable return for iTTii hard work he puts into the industry. He should get that., regardless of London values. Iho present principle of distribution of butter for local consumption is a competitive one, and, owing to unprofitable London parity, every factory, co-operative or proprietary, is eager to sell as much as possible locally. f suggest that tho quantity of butter fur consumption in Xew Zealand should ba pooled, every factory to supply a. proportion of the requirements, such quantity to be based on a per centum of tha total output of each factory. T would suggest brands for first and second grades respectively, such brands to bo used by all factories for butter manufactured for local consumption; distribution to bo made from one centre in ev£ry district. I suggest that a board be elected by dairy companies, such board to have the power to fix prices (wholesale only) bas-d on tho cost of production, plus a reasonable profit to producers. The Industry At Heabt.