LOCAL BUTTER PRICES.

New Zealand Herald, Volume LXVII, Issue 20722, 15 November 1930, Page 14

LOCAL BUTTER PRICES.

Sir, —The present, state of the butter market cannot fnil to be a matter of deepest concern to those interested in the dairy industry. This industry provides the major portion of the income of this province, and the position is such that should the price keep at its present level many hundreds of dairy farmers will be unable to pay expenses. Not only will they be forced from their holdings on to an already overloaded labour market, but they will, in many cases, lose the hard-earned savings of a life-time. We cannot alter the price to be obtained in the world's markets, but one would naturally conclude that producers would see that the price received for tho butter sold locally should at least be equal to the London parity, pins a reasonable amount for patting, wrappers and distribution, but at the present time that is not the position. With butter selling in London at 114s per cwt., plus 3s 6d per cwt. exchange, the return to factories is 11.14 d per lb. Tho butter sold in Lbndon is in 561b. boxes in bulk, but that sold locally has to be patted and wrapped in parchment wrappers, for which service has been considered to bo a fair return. Until October 14 factories selling locally had been getting Is 3d for first, Is for second. At that 'time the price in London was 118 a per cwt. On October 15 the price locally was reduced Id, and on October 22 there was a further reduction of 2d to Is first, and lid second. The last 2d reduction should never have been made, as it means we nro selling locally at practically London parity and throwing in tho cost of patting, etc. Although from October 14 to date tho London price foil only 4s. the local price was reduced 3d per lb. The public hero have the advantage of buying fresh butter straight from the churn which should bo worth more than butter sold in London several months old, and I am sure they would have paid Is 4d for that butter quite willingly, as there is a decided sentiment amongst us against, sweating anybody, and if there is any sweated labour in New Zealand to-day it is the dairy farmer with tho present price. No ono in this country would care to receive loss for their labour now than in 1914, but. that is our position to-day. Unless things improvo wo shall get. at least. 2d per lb. less than in 1914. Quito a reasonable estimate of the butter consumed locally in the Auckland province is 120 tons per week. Through the 2d reduction made in tho local price on October 22 tho hardpressed dairy farmer for the last three weeks has lost £2300 per week, or a total of £6900. Can ho afford to let this go on ? This is certainly not a time when the different dairy companies, whether proprietary or co-operative, can afford to bo squabbling and fighting ono another, as the man who milks the cow has to pay for it. The position is so serious, that it is useless for us to blame one another, and bandy recriminations backwards and forwards. We must get together and try to find a remedy for the present suicidal position, so that, the hard working farmer shall receive every penny that it is possible to pay him. J. E. Leeson. Chairman, Morrinuville Dairy Company.