BUTTER SUPPLIES

Otago Daily Times, Issue 18322, 12 August 1921, Page 5

BUTTER SUPPLIES

* SUBSIDY TO CEASE. FREE MARKET FROM SEPTEMBER 1. DROP IN CHEESE. (Fboh Ode Own Cohbespondent.) , WELLINGTON, August 10. The Minister of Agriculture (the Hon. W. Nosworthy) attended a conference of representatives of butter manufacturers throughout the dominion, the DirectorGeneral of Agriculture and the Controller of the Imperial Supplies Department were also present. A general discussion took place governing tho question of local butter supplies in all its aspects, together with various points which had arisen in connection with the arrangements at present in force. And as regards these points a satisfactory agreement was arrived at. As a result of a discussion later in the day with the Departmental officers concerned in' the matter of local butter supplies, after the present price fixing agreement terminates on the 51st inst., the Minister finally announced that as from September 1 the payment of a subsidy to keep retail prices at their present level would cease, and the butter factories would be given a free market. He made it clear that the present financial position was such that a continuance of the subsidy was entirely unwarrantable, and that local prices must find their own level, though it was necessary for factories to sell at no more than a fair and proper price, having regard to current market values. As regards retail prices to the public, as compared with wholesale values, that matter would receive attention, especially in view of what hod happened on a previous occasion. This announcement mot with tile full approval of tho dairy factory representatives, who themselves desired open market conditions, and they expressed their intention to do their best to aid in making the new order of things work smoothly in the interest of consumers.

Tho withdrawal of offers by representatives of British firms to-day in regard to cheese buying, caused some perturbation among producers. Offers of butter and cheese at recent ruling prices are not being accepted. There is a considerable drop in cheese prices in the Home market, owing to tho break-up of the drought being general, and the arrival in England of large supplies from Canada and New Zealand. Homo firms think that prices have already gone too high here. It is thought the drop may be only temporary. Butter buyers are not eager to buy for shipment beyond September. The cost of tho butter subsidy to tho country is believed to bo over £1,000.000. The improved price of tallow in England shows that it is wanted for margerine, which in bad times the people will buy instead of butter.