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Otago Daily Times, Issue 18516, 29 March 1922, Page 3

THE PKICE OF MILK. TO THE EDITOR. < Sib, —ib my mind your correspondents who have beeen discussing the price of milk have missed the real reason of the present conditions. For a large number of years the milk companies have bought their supplies at per gallon from farmers who specialise ifi winter milking for town supply. This season one company, on what was practically three days’ notice, canceller, all agreements and offered a largo number of farmers butter-fat. rates for our milk without, the farmer having any say whether the milk would lie sold for’ town supply or used in butter manufacture. (Butter-fat prices moans less than 4d per gallon on last month’s statements.) A “favoured" few were asked to sign what was practically a bond to supply all their milk at a price which was not stated. Now, Sir, winter milking for butter-fat spells bankruptcy for us, with the result that we have had to make our own arrangements to sell our milk to the best advantage to ourselves. Does the public realise that those companies have always had a very large margin to work on, irrespective of any price paid the farmer? For years we received half the retail price of milk, hut lately they have taken another “cut," making (heir present gross profit, about 125 per cent, on the retail price. Whore is the Board of Trade with its 35 1-3 per cent,, gross profit, which was supposed to he ample in war time, and wdiich should certainly pay expenses at the presold time?—l am, etc., Dihul'stf.d. Portobello, March 27.