THE BUTTER PROBLEM.

Otago Daily Times, Issue 18448, 9 January 1922, Page 3

THE BUTTER PROBLEM.

TO THE EDITOR. Sib, —In your leading article of this morning you make the position plain from one point of view. May 1 endeavour to do'sa tram another? Last season our producers, jointly with our Government, forced—l am not using too strong a term —the Imperial Government in tho figure they considered the highest it could pay—viz.., 240 s per owt up to 280 s per cwt (2s 6d per lb) on board steamer here. The Imperial Government had previously bought the Australian output at 2365, and the action of our Government made it incumbent On the Imperial Government to advance; its price in fairness to the Australian producer to 276 s per cwt on board steamer in Australia. The consequence waa the Imperial Government paid 40s per cwt more the Australian and New Zealand bwttervlast jseaeon than it had any right to pity. This os teas price has naturally reduced consumption, and it is reported tho Imperial Government will not lose less than £10,00.0,020 in the deal, i estimate the less at ‘’nearer £15,000,000. For instance, 280 s per cwt here equals 300 s, ex store, London. From a recent cable it will be seen the Imperial Governmont/offerod to soli back at £IOO per ton 22,000 tons it still has on hand, costing £3OO per ton. This equals £2OO per ton loss, or, in all, £4,400,000 loss on this small quantity. No, Sir, our Government disgraced us when it forced the price on the British consumer up to £2BO per ton here last year, and in tho end it will not be found that its action improved the position ol our producers either. Had our Government accepted the extremely good price offered in the fust instance —viz., £24o—it is safe to assume all would l have gone into consumption and the market to-day be much more stable than it is. Another asxiect of the position has also to bo considered. Before the war the price of the season’s output, of butter was round about 112 s per cwt on steamer here, and / this is once again about the value to-day. Over the l two seasons, therefore—this and last season -if wo add 112 s and 280 s, together tho average price runs out 196 s per cwt on steamer here for two seasons, as against 112 s per cwt for tho season before the war began. —I an}, etc., January 7. * Reasonable.