MILK PRICES

New Zealand Herald, Volume LXXIV, Issue 22700, 12 April 1937, Page 10

MILK PRICES

INCREASE ONLY JD COMPANIES' COMMENT NO REAL BENEFIT GAINED OPERATING COSTS RISE Substantial - increases in operating costs and almost negligible benefits to the producers are foreseen by officials of distributing companies who have considered the results of tlio Auckland Metropolitan Milk Council's decision to increase the price paid for milk at the farm gate and to reduce certain margins allowed for cartage, pasteurisation and distribution costs. Serious concern was expressed by these officials on Saturday at the effect of the reduction of margins upon their operating allowance.

"The reductions of Jd a' on inward cartage, id on pasteurisation, and on outward cartage will have a very serious effect upon our operating margin," said Mr. G. F. Joseph, director of Hygienic Dairies, Limited, part of whose business is the supplying of such institutions as the Auckland Hospital. "As a result ,of these reductions our operating margin will become practically non-existent and we will have to consider what is to be.done." "The supposed increase represents only a manipulation of figures which gets my producers nowhere and gives them nothing," said the manager of the Auckland Milk Company. Limited, Mr. R. S. Smith. "No such increase as has been decided upon is possiblo in any co-operative company paid upon realisation. The gain is purely supposititious. "With such companies as ours the producers are paid on realisation on a pro rata basis per pound of butter-tat. Therefore the effect of the apparent increase is that Is is being taken out or one pocket and being put into another, because the gain in price is oliset by the reduction in margins. "It would appear that the producers have been given an increase of said Mr. Smith, "but the reduction in the margins means a reduction in the allocation for costs of ltd, which, with the reduction in the Milk Coun--cil levy of |d subtracted from this, means that the gain to the producers j s j f i—and it may not be even that much. This applies* to our own orgahisaThe complaints of Mr. Joseph and Mr. Smith were referred yesterday to the chairman of the Milk Council. Mr. J. J. Goldstine, who said he did not wish at this stage to make any comment upon the matter. MUNICIPAL CONTROL SUGGESTION AT DUNEDIN [BY TELEGRAPH —OWN CORRKSX'ON DF.XT ] DUNEDIN. Sunday Reporting on the question of establishing municipal control of the Dunedin city milk supply, the City Council's general committee states that the matter calls for an expert investigation. It recommends that, as a preliminary step, authority be given to approach the Wellington City Council with a .view to obtaining the co-opera-tion of that body in allowing the general manager of the Wellington Municipal Milk Department, Mr. Herron, to furnish a report on the system of control and distribution of milk best suited to the requirements of Dunedin. It is considered that the report should contain estimates of the cost of establishing and operating any scheme which may be recommended.

Mr. Herron i$ regarded as an expert of wide experience on this subject. In 1927 he was sent by his council on a visit of investigation to the United States, Canada and Britain.