CHEAPER MILK

New Zealand Herald, Volume LXXI, Issue 21882, 18 August 1934, Page 13

CHEAPER MILK

PRICE W A QUART COUNCIL FIXES SCALE EFFECTIVE ON SEPTEMBER 1 CREAM RATES UNCHANGED A reduction of id a quart in the retail price of milk was decided at a meeting of the Auckland Metropolitan Milk Council yesterday, the summer rate being fixed at 4Jd a quart loose, and od for bottled milk. The new prices will operate from September 1 to December 31.

The special rates in force for homes for the poor, orphanages and relief ■workers were cancelled. Prices of cream will remain unaltered.

The proportion in which the retail price of Is 6d a gallon will be allocated among producers and vendors, while providing for treatment and cartage, was also decided. The price to the producer at the farm gate was fixed, at 7£d a gallon, and the cost of pasteurisation, including collection, incidental storage and delivery, was 22d. leaving the vendors 7sd and also providing for the council's levy of -id. Milk for Resale The price to be charged by vendors for milk sold wholesale .for resale to a milk-shop proprietor was fixed at 10id a gallon for 10- gallons or more, and for less than 10 gallons, IOJd for any bought for a milk round and Is lid for the remainder.

The price to a roundsman for resale was set at 10} d a gallon. Prices to be charged by vendors for milk sold to any person or corporation not for resale, including delivery are: —11 id a gallon for 40 gallons a day and over; Is OJd for under 40 gallons and not less than 10 gallons; Is lid for under 10 gallons and not less than three gallons; Is 3d for under three gallons and not less than one gallon. In each case bottled milk will be 2d a gallon extra.

After considerable discussion, it was decided that as in the opinion of certain members the prices for cream had already been fixed at too low a level, no change should be made. The following rates prevail:—To producers at the farm gate for separated cream bought for cream trade, on the basis of Is per lb. butter-fat; for milk for separation into cream, 5d a gallon; price to be charged to vendors, 7s a gallon; price to wholesale shops shipping, etc., five gallons and over, 7s; under gallons, 8s; delivered, retail or over the counter, four ounces, sd; eight ounces, 9d; 1G ounces, Is 4d.

Ice Cream Manufacture Cream for ice cream will be charged at the rate of 7s a gallon for five gallons and over. The price of milk for ice cream manufacture will be 8d a gallon for 20 gallons or over, the producer to receive sd.

The chairman, Mr. G. W. Hutchison, was absent, but a statement concerning prices was read on his behalf by Mr. I. J. Goldstine, who presided. "I have given the matter exhaustive consideration, and in this I have been guided by standard cost sheets which have been compiled," Mr. Hutchison said in his statement. The consumer could not reasonably be expected to pay a price to cover uneconomic conditions, and that factor had to be taken into consideration. The only way was for all parties to make some concession and for all to work in harmony to bring about conditions which would result in lower costs. He was therefore of opinion that 4Jd a quart would be an equitable retail price for the next four months. The adoption of the report from the council-in-committee, proposing the new prices, was nioved by Mr. S. Takle. H 0 said that under the new scale of prices many organisations would receive their milk cheaper than before, and only a small proportion would have to pay more. Mr. H. P. Burton, who seconded the motion pro forma, said it seemed that evidence showed that the council was not justified in reducing the price from 5d to 4id a quart. It would, however, have to be made clear that uneconomic costs would not be countenanced. His view of the whole matter was that the council had done the best thing under existing conditions. Producing at a Loss

"As a producer, I cannot be satisfied with 7}d, but am prepared to let the matter stand for four months," said Mr. A. C. Trousdale. The right to protest against the prices must be retained, as at the price it meant producing at a loss. Mr. J. Littlejohn also criticised the price fixed for the producer. Mr. Goldstine moved an amendment, that the retail price be 4d a quart. He felt sure, however, that his amendment would meet with the same fate as a motion on similar lines he moved at a meeting of the council-in-committee. "Why should the consumer be forced to carry the producer and the vendor who are operating urieconomically, either because of highpriced land or because they are unable to bring down costs?" he asked. He hoped that certain amendments would be adopted which would enable the council to compel certain economies. In that respect he saw a gleam of hope. "I am not going to crucify producers and vendors to give the city milk that does not give the producers and vendors a fair return," said Mr. Burton.

Effect Upon Wages Mr. J. Haslam said the price of 4d would not allow award wages to be paid. . , Mr. Little,iohn said a price of /Jcl a gallon to the farmer meant that the council was going to take P a rt in a sweated industry. He would like to see the price 5d a gallon retail. Mr. Meikle supported the amendment because he thought something should be done for the consumer. _ Mr. F. W. Stonex: I think 4*d is little enough. The public will be delighted to get good milk at 4Jd a quart. , , Mr. Goldstine said the question was one of good sound farmers' and vendors. Large firms had such high overhead and capital charges that they were unable to compote with the man who had not. There was no other industry in New' Zealand spoon-fed as the dairy industry was. If the tirms were in the unfortunate position he had outlined, the sooner they went out of business the better, and lot the small men carry on. The amendment was lost, being supported onlv by the mover and seconder. Mr. Goldstine's second amendment, relating to charges to relief workers, was defeated by a similar margin.