FACTORIES TAKE INITIATIVE.

Pahiatua Herald, 29 September 1936, Page 5

FACTORIES TAKE INITIATIVE.

ELi MINA TING DISTRIBUTORS. Electric Telegraph—Press Association WELLINGTON. Last Night. Certain dairj factories supplying Wellington market have decided to make supplies available to retailers direct at the same price as that charged to distributors. Under this arrangement which came into operation to-day, butter from these factories will be available at the factories’ depot in Wellington at 12Jd per pound in pats, plus a. servicing charge of-4Jcl a box.

The factories concerned are situated in the main ill Manawatu, Hawke’s Bay arid Wairarapa. 'The condition of sale to the retailer is that the- transaction must be for cash.

It is pointed out that the new arrangement is likely to have a serious effect on the business of distributors, who previously handled butter from the factories concerned, but oil the other hand, retailers may prefer to retain their connections with wholesale houses in order that they might continue to operate on. a. credit basis. The Wellington Master Grocers’ Association announced to-day that it had been advised by distiibutors that the wholesale price for butter had been reduced to Is Id per pound delivered and that .the new retail prices would he: First grade Is 2d, superfiine Is 2£d, both cash over counter, and up to Is 3d booked or delivered.