PRODUCE PRICES

New Zealand Herald, Volume LXXVI, Issue 23470, 6 October 1939, Page 6

PRODUCE PRICES

DAIRY GUARANTEE SAME AS LAST SEASON BUTTER FIXED AT 14.89 D SHIPPING AND COSTS [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Thursday The guaranteed prices for dairy produce for the current dairy season will be the same as for last season —a basic price of ]-l.S9d per lb. for butter and a basic price of 8.42 d per lb. for cheese. This announcement was made to-day by the Minister of Marketing, the Hon. W. Nash. Local prices of butter and cheese would he maintained at a le\ol that would enable dairy companies to obtain a return commensurate with the return from export prices, said Mr. Nash. It was estimated that on the basis of the present cost of manufacture and under normal manufacturing conditions, pay-outs to suppliers would be as follows: —Butter, manufacturing companies, 15.88 d per lb. of butterfat; cheese manufacturing /•>companies, 17.88 d. . • The Minister added that these prices in 1038-39 enabled dairy companies to make pay-outs to producers on an average of ICJd per lb. for butter-fat for butter and 18d per lb. for butter-fat for cheese. Pears had been expressed regarding the effect of the present emergency on the availability of shipping and on manufacturing costs, Mr. Nash said. It was impossible to foresee these eventualities, but the Government realised that it must protect the producer should an undue hold-up of shipping occur or undue costs he incurred. The prices to be paid would be f.o.b. ocean steamer and were based on normal conditions of manufacture, storage and transport. The Government would reconsider the basis of payment if an abnormal hold-up in shipping occurred, bringing with it any difficulty in arranging finance. I Mr. Nash added that the Government had received many assurances of support from all classes of the community and felt certain that all farmers would co-operate to the fullest extent by producing the maximum quantity of butter and cheese winch seasonal conditions would allow. EQUIVALENT LONDON VALUE MAXIMUM RATES FIXED Based on last year's charges the London equivalent of the guaranteed price for butter was 124s 3d per cwt., and for cheese 6Ss 6d per cwt. Soon after war broke out 129s per cwt. was fixed as the maximum wholesale price for Empire butter, but this was readjusted toward the end of September when the maximum wholesale price of all kinds of butter was lifted to 145s per cwt., ex store, and retail prices were fixed at Is 7d per lb. AUSTRALIAN EXPECTATION PURCHASE AT 134S 6D SUGGESTED (Received October 5, lo.<lo p.m.) SYDNEY, Oct, 5 Butter producers of the north coast of New South Wales anticipate that the British Government's price for Australian butter is likely to be 134s 6d per cwt., which is considered reasonable. Australian producers will be relieved of all shipping risks.