THE BUTTER MARKET

Otago Daily Times, Issue 16953, 15 March 1917, Page 6

THE BUTTER MARKET

OPERATION OF THE LEVY.

INCREASE, POSSIBLE.

(From Our Own Correspondent.)

WELLINGTON, March 14. ■ Some concern has been expressed lately by persons interested in the dairy produce export business as to how tho Government's butter, fat levy scheme is going to workout i The„ levy is collected on all butter fat sent into factories to provide a fund from wh.ch producers who supply the local market at a price fixed by the Government can bo paid the, difference between the local price and the' export price. Tho rate of levy at first collected was Id per pound of butter fat, the. difference between the fixed local price of'ls 7d per lb retail and the export price being estimated at 3d per lb. It was suggested at the time that tho levy was made that this difference would probably diminish and that, it would in consequence be possiblo to reduce the rato of the levy. The reverse has been tho case. Indeed, the export, price of butter has shown an upward tendency over since that time 'until now New Zealand butter is worth in London 224s por owt. It is suggested that the levy of 3d will not provido sufficient money to recoup tho producers selling for the local market for their loss of profit, and that the Government may yet have to demand from the producers a heavier levy. The local supply price is to be raised by Id jper lb during the months of June, July, and August, and this increase will go to reduce tho difference between tho local price and tho price obtainable for butter for export