BUTTER DEARER

New Zealand Herald, Volume LXXV, Issue 23209, 1 December 1938, Page 12

BUTTER DEARER

RISE OF TWOPENCE ! FIRST GRADE NOW 1/6£ D NEW RATES ANNOUNCED PARITY WITH EXPORT PRICE Butter will be twopence ft pound dearer to-day. Housewives who have been paying Is 4Jd a pound for first grade will have to pay Is 6Jd for the same article, and about Is 6d a pound for second grade, according to the margin on which the dealer trades. The price has been fixed by the Government to the wholesaler at Is 4Jd and Is 4ld. He cannot sell for more or less, and the retailer's usual trading margin of twopence a pound to cover his costs and his profit, brings the rate up to the figures stated. The extra cost will pass into the Government's Dairy Industry Account from which it will he paid to the farmers. The Government has been carrying a loss on the local market since August.

Statement by Minister

The new prices were announced last I night by the Minister of Marketing, the Hon. W. Nash. A Press Association telegram from Wellington stated that in accordance with the procedure to ensure a like return to the dairy farmer for butter sold on the local market as was realised by the sale of butter to the Government for export, tho Minister announced that, as from today, tho price of first grade patted creamery butter to shopkeepers would be Is a pound. There would b® corresponding adjustments for other grades of butter. ... "This price," said tho Minister, "will ensure the aetuo.l recovery from the consumer by the Marketing Department of tho amount paid to the dairy farmer in accordance with the price guaranteed for the current season. Tho allowance to tho wholesaler for distribution will remain uho same. A Gazette notice fixing these prices will be published to-morrow. Season's Guaranteed Price It may be somo consolation to tho housewife to recall that she has escaped paying for some time the higher prices that have accrued from butter sold for export. The new season's guaranteed price became operative from August 1, the rise being 1.23 d a pound. This higher price has not been passed on in New Zealand until now.

Grocers and dealers throughout the Dominion have been pressing the Minister to announce the new local rates but he stated last week that he was awaiting the completion of the task of gathering information concerning the amount of butter held in cool stores.