BUTTER PRICES

Otago Daily Times, Issue 18197, 18 March 1921, Page 5

BUTTER PRICES

POSITION IN THE DOMINION. QUESTION OF FREE MARKET. (Feb United Press Association.) WELLINGTON, March 17. In connection with the butter market, the dominion position is an interesting one. The Butter Committee which recently met recommended that the Government grant entire freedom to the local market, or continue the present subsidy until July 31. The Prime Minister replied that the present subsidy could not continue, nor could an entirely free market be allowed. It was then recommended that after March 31 the wholesale price of butter should bo 2s lid per lb, f.0.b., or rail, 2s 3d to grocers; in pats, 2s 5d retail. That a subsidy, of threepence be paid. Export after July 31 to be by special license. The Director-General of Agriculture (Dr C. J. Reakes) now writes stating that the Government greatly regrets the proposals as to prices. The subsidy cannot be accepted in view of the present position of the oversea markets. The Government considers that the retail price to consumers should not exceed the present price of 2s 3d per lb. Having regard to the circumstances as set out, the Government would offer a free market for butter within the dominion from the 31st inst. In a covering note the Butter Committee explained that prohibition of export unless by license will continue until • July 31, but otherwise the local market is actually free It is difficult _to say how prices < will go, but the committee’s recommendation to the Government indicated a price of 2s 4id per lb for bulk, f.0.b., or roil. It is claimed that should the factories demand this price it would mean 2s N Bd per lb retail.