DAIRY FARMERS' RETURNS

New Zealand Herald, Volume LXXII, Issue 22142, 22 June 1935, Page 17

DAIRY FARMERS' RETURNS

Sir, —Permit a brief comment on the second letter from " Reflex." I am glad he does not persist in his contention that butter suppliers may expect a pay-out of lOjd per lb. butter-fat this season because butter has averaged approximately 78s per cwt. in London. Very soon dairy companies will be publishing their annual returns and he will find, when he removes the frills which too often adorn a dairy company's published statement of its pay-out for the season —such as, " payment for finest quality, including cream cartage "—that the average pay-out for butter will be from 9d to per lb. " Reflex " confines his letter mainly to criticism of the overseas charges, but here again he speaks without first-hand knowledge. He complains about a charge of 5Jd per box for landing charges, not knowing that this includes free storage for a week to a fortnight, depending upon the port. He also complains about a Government levy of 9s 2d per ton on butter, but the Government makes no levy. A levy is made by the Dairy Produce Board, and this was increased last year, following representations made by tho industry itself, because the increase will be earmarked for advertising dairy produce in Great Britain. Dairy companies are constantly receiving reports from storekeepers in the Homeland that they consider New Zealand butter is equal to Danish in quality, but that the consumer must be made aware of this by extensive advertising. I have a letter from the manager of a large store saving that many people refuse to buy New Zealand butter because it is so cheap, going on the assumption that anything cheap is nasty. Advertising is the onlv solution of that problem. " Reflex ,r states I have omitted to include in my figures the profits on .butter sold locally. If he knew only a little about the price-cutting methods adopted by dairy companies and their agents, and the granting of secret rebates', particularly on sales made to chain-store organisations, be would realise that the profits on locally-sold butter are negligible under present conditions. I agree wholeheartedly with his contention that a better price should be realised on tho local market, not necessarily by increasing the price to the consumer but by the elimination or the wasteful practices I have mentioned. The Dairy Board has promised to inaugurate such a scheme for the new season commencing in August and will be taking evidence in Auckland on the subject within tho next few days. Secretary.