LOCAL BUTTER PRICES

New Zealand Herald, Volume LXIX, Issue 21359, 7 December 1932, Page 12

LOCAL BUTTER PRICES

STABILISATION SCHEME APPROVAL OF PRINCIPLE DAIRY BOARD'S VIEW [BY TELEGRAPH —OWN correspondent] WELLINGTON, Tuesday Stabilised prices on the New Zealand market with a fair allowance to dairy factories for the cost of patting and distributing butter was the objective supported unanimously by the New Zealand Dairy Produce Board at its meeting today. Mr. A. J. Sinclair, secretary-manager of the To Awamutu Co-operative Dairy Company, explained his scheme under which a central organisation would bo set up to deal with sales of butter on the New Zealand market. Under this scheme full power would bo given to prevent secret commissipns between factories and agents, and a butter stabilisation committeo would adjust the price for the local market in accordance with London parity. It was suggested that 1 a fair premium on butter sold locally would be 2d per lb. on account of its being similar to Danish butter, fresh from the churn. Secondly, it was suggested that a fair charge for patting and distributing would bo per lb. There would be no interference with retailers who would be free to fix their own prices. All that the scheme aimed at doing was preventing price-cutting tactics between different factories.

It was pointed out that intensive competition during recent months had forced the price on the local market to a level below London parity and that in order to protect their sales on the local market for the future companies were forced to -meet any unfair price cutting that was going on. A voluntary scheme was satisfactory as far as it went but it required only one factory to break away for the whole scheme to be upset.

Legislation would be needed for tho scheme, and Mr. Sinclair put the proposals forward only as a basis of discussion.

The hoard discussed the proposals fully. While not committing itself (o any particular scheme, the board decided unanimously that in view of the chaotic state of tho local market, where butter was being sold in pats at prices below tho export parity of bulk butter, the board was of opinion that some such scheme as indicated by Mr. Sinclair should be established.