BUTTER ON LOCAL MARKET

Taranaki Daily News, 19 January 1933, Page 4

BUTTER ON LOCAL MARKET

PRICE STABILISATION PLAN

INDUSTRY TO BENEFIT BY £400,000.

ADDITIONAL COST TO HOUSEHOLD.

SUPPORT FROM FARMERS’ UNION.

By Telegraph.—Press Associatiin.

Wellington, Jan. 18.

A unanimous vote in favour of the adoption of a scheme proposed by Mr. A J Sinclair, secretary and manager of the Te Awamutu Co-operative Dairy Co., for the stabilisation of butter prices on the local market, was passed at a meeting of the Farmers’ Union Dominion executive. Mr. Sinclair said the scheme suggested that the commencing basis of computation for the local market should be the f.o.b. parity of export butter, and fortnightly adjustment should be. made in the local price based on the average realisations of New Zealand butter on the London market during the previous fortnight. . Dairy companies would get f.o.b. parity plus the cost of patting and distribu-. tion, and the whole industry should share an additional revenue of £400,000 by the establishment of a fund into which each company would make monthly payments on the basis of 2d for each pound of butter sola locally. The fund would be distributed at the end of the season to every butter-mak-ing company in proportion to the total output. The scheme would involve the average household in an additional expenditure of 6d a week.