DEARER MILK

New Zealand Herald, Volume LXXVII, Issue 23595, 2 March 1940, Page 10

DEARER MILK

SUPPLY IN WINTER 4D TO A ID INCREASE OPERATION NEXT MONTH AVOIDING A SHORTAGE The price of milk in Auckland will be increased by £d a quart in zoned areas and by Id a quart in unzoned areas from April 1, according to resolutions adopted by the Milk Council last night. These advances, which have beep approved by the Price Iribunal, will apply during the winter months until September 30.

The present charge for milk is Gd in zoned and unzoned areas for loose supplies and 6sd for bottled milk. Ihe price of cream will remain unchanged during the winter. The chairman, Mr. I. >T. Goldstine, said last night that, in view of the shortage of milk last winter, the council had made a complete investigation into producers' and vendors' costs in order to ensure that an adequate price was fixed to maintain an ample supply during the winter, the most difficult period for production. A special subcommittee had made a comprehensive inquiry into costs over the period from October to February. As a result it made a recommendation to the council that vendors' margins should not be altered. While there had been increases in the cost of petrol and other items. ;t certain amount of voluntary consolidation had made it. unnecessary to increase the margin. The sub-committee recommended that to prevent a recurrence of last winters shortage, making it necessary to bring in unregistered milk, the producers margin should be increased. Among factors governing this decision Avas the advance in the price of various commodities used in milk production. The increase would be limited to six months, when the producers' margin would again be reduced, with a consequent reduction in the charge to the consumer. The decision , was in keeping with regular practice. Mr. Jl. G. II oss, president of the Auckland Whole Milk Producers' Association, thanked the council for assisting producers. He gave an assurance that they would do all in their power to ensure that all the milk required was available this winter.

TRIBUNAL'S DECISION HIGHER PRICE APPROVED FULL INQUIRIES PENDING SITUATION IN AUCKLAND [BY TELEGRAPH —PRESS ASSOCIATION] WELLINGTON, Friday The Price Tribunal announced to-day its decision on the Auckland Metropolitan Milk Council's application for permission to make adjustments in the price of milk during the winter. Evidence submitted to the tribunal showed that there had been a steady decline in the production of milk during the past few years, and that on the other hand there had been a substantial increase in consumption, due more particularly to the demand for milk for schools. The tribunal was largely influenced in its decision by this aspect. In regard to the other grounds upon which the application was based —increased costs in production, especially during the winter months —the tribunal, while accepting in the meantime the figures submitted by the council, felt there was need for the carrying out of an independent and comprehensive investigation into farm casts. In its decision the tribunal has made provision for this and for an investigation into the distribution of milk in Auckland. This investigation will be carried out by the tribunal itself as soon as practicable. Together with an investigation into the production of milk, which will be carried out by the Agriculture Department, it will be completed prior to the commencement of the summer season.

The tribunal approved of the price of loose milk being increased to 7d a quart in unzoned areas and 6jd a quart in zoned areas from April 1 to September 30, subject to the proviso that the zoned price be introduced as soon as practicable. It also ruled that the council should proceed at once with zoning in areas at present unzoned and introduce the zoned price in each area as it became zoned.

The council had given definite assurances to the tribunal, it was stated, that it would do everything in its power to bring about reductions in the cost of distribution of milk and to effect such reductions in the price to the public as might be made possible by reduced costs of distribution, and that it would press 011 and complete zoning at the earliest possible moment.