LOCAL BUTTER PRICES

New Zealand Herald, Volume LXXII, Issue 22197, 26 August 1935, Page 15

LOCAL BUTTER PRICES

Sir, —I have always understood that the local price for butter was fixed on a parity with London prices, the object being to abolish the price-cutting which would otherwise prevail in tho endeavour to secure the local market; so, if the price rises in London, it automatically rises in New Zealand, and vice versa. Secure in that belief the consumers pay—without demur—whatever retail authorities fix. But on Saturday that confidence was rudely shaken. During the past month the price in London has been from 93» to 95s per cwt., the local retail price for best brands being Is, 2d per lb., or, say, 130s per cwt. After being 94s all last week till Saturday on that day the welcome nevrs was published that it was again 955. On the same day the retail price was reduced Id per lb., that is, 9s 4d per cwt..! The great bulk of this reduction will ultimately have to come out of the pockets of the farmer-producers. I should think it is up to that body of worthy citizens to demand that the mysterious authority which fixes prices for local butter should explain why, with butter at the highest price m London it has reached in nearly two years —with a short exception in the early part of the year—it should make a voluntary present of 9s 4d per cwt. to the which sum comes principally from the farmers' hardearned money. J. Thornes.