PRICES OF MILK

New Zealand Herald, Volume LXXV, Issue 23103, 30 July 1938, Page 14

PRICES OF MILK

NO ALTERATION MADE PRODUCERS TO GET MORE ENSURING WINTER SUPPLIES MOVE TOWARD STABILITY There is to be no increase in the price of milk to the public, although the Milk Council decided, alter a long discussion in committee yesterday, to fix the dairyman's average margin for 12 months at a halfpenny a gallon more than it. lias been in the past. For the four winter months in ISM!) the farmer will receive 12Jd a gallon, instead of lid as now, but in the eight months between September I next and April .'{(), 1 DM!), ho will receive l.Oid, which is unchanged. Mr. I. .1- Goldstine, chairman of the council, stated yesterday afternoon that since last May the council had collected data from farmers to show production costs, as well as similar information from other sources regarding treatment and distribution costs. It was shown that there had been increases in labour, repairs, maintenance and material costs to the farmer, while distribution and treatment costs had risen because of increases in awards. Moreover, a roundsmen's award was pending. Factors of Costs All those matters had to be taken into consideration, .Mr. Goldstine said. The Act provided that in fixing prices, the council must have regard to production, treatment and distribution costs. The council had unanimously decided upon an increased margin to the producers, but only after a thorough investigation, to ensure stability in the town milk trade and an adequate supply of milk during the winter months. The fixing of the dairymen's margin for 12 months would enable them to make immediate arrangements for their herds. It was not considered necessary to fix tho vendors' margin, or prices to consumers, for longer than eight months, since different conditions might exist that would affect the vendors' margin, and the price to tho public. Rates to Public The price of milk will still ho Gd a quart for loose milk in ordinary areas, ojd a quart in zoned areas, and an extra id in both instances for bottled milk. Mr. Goldstine said it would bo noted that the new arrangement provided a difference between tho summer and winter months of 2 id, and it was hoped that the difference would bring about the production of more milk during the winter, and ensure an adequate supply at a time when shortages usually were experienced. It was gratifying to know that notwithstanding the general all-round increase in costs, the trade, both producers and vendors, bad met the position and avoided any increase in price to the public.