THE PRICE OF MILK

Otago Daily Times, Issue 21598, 19 March 1932, Page 14

THE PRICE OF MILK

TO THE EDITOR. Sir. —“ Producer ” inquires how long the drastic cutting of milk prices is going to continue. The answer is that it will continue as long as farmers continue to hawk under-priced milk irrespective of hygienic service. As one who during the last few weeks has had ample opportunities to study the conditions of both milk production and milk distribution. I would disclose what “ Producer, in fairness to all parties, might have embodied in his critical letter. He complains of the price which some farmers have been asked to accept. He suggests that retailers should accept a lower margin of profit and that the producer should continue to enjoy the very profitable price paid in the past year, even though the price has been lowered to the public 4d per gallon (from ad to 4d per qtiart, and in some cases to

3d per quart). “Producer” claims that farmers should be exempt from the lower prices that must come in accordance with the new standard of values. Dairy farmers are actually keen to talk business with retailers on the 6d per gallon rates, especially those who are receiving 9d per lb of butterfat, at the factories. If farmers are satisfied with present butter-fat prices those fortunate enough to he in a position to sell milk at Cd per gallon rates are definitely making more than half that received by their less fortunate brothers and do not have,' to deliver the goods. They are to be envied. Unlike the retailer they do not run the same risk of bad debts, which are very common during the present depression, to say nothing of smaller profits and falling ofi of sales, the result of unemployment and the reduced spending, power of the public. If the position of the retailers, even ate. a 7d or 8d margin (not lOd and la 2d ns your correspondent erroneously calculates as net profit) were open for review in Dunedin to-day, it would be found that some were on the verge of bankruptcy whilst the slump in the sale of njilk busi-. ness ia very noticeable. The long hours" of employment every day of the year bar , milkmen from social life except to a ' very limited extent. I recently had the opportunity of accompanying a milkman on his daily—or, more correctly, hisnightly—journey, and our movements were as follows: —Left Dunedin on Saturday at 11 p.m. for Taieri for milk. After collecting, returned citywards serving customers en route, and reached Caver--sham at 3 a.m. on Sunday after an allnight continuous journey, during w’hich we encountered many revellers from country and suburban dances. I left the delivery van at 11 a.m., while more customers had still to.be served, and during the whole time, from 11 p.m., two men were kept continuously busy. I happen to know that this “hawker” would willingly change his position with the farmer selling at 6d per gallon. “ Producer ” errs when he states that retailers have no expenses. Apart from bad debts and wages, the wear and tear of transport and delivery, wastage and broken bottles present a heavy toll. He also leaves the impression that the bulk of Dunedin milk supply is obtained through retail dairy companies. Such is not the case. There are farmers retailing their own milk in the proportion of, seven to one retailer buying from the producer. Your correspondent alleges that “hawkers usually obtain milk where.they can procure the cheapest, quality being not much considered.” It is, in view of the present been competition, essential that retailers should buy only the best quality milk. The law governs the milk standard. If farmers cannot prosper on 6d per gallon on 365 days a year it is because of the heavy load they are carrying in high ‘ land values and interest. It is false to allege that the milkman Is making their road a harder one. —I am, etc., Caversham, March 18. P. W. Other Letters to the Editor appear on page 16.