FLOUR PRICES AGAIN LOWER

Taranaki Daily News, 11 September 1934, Page 12

FLOUR PRICES AGAIN LOWER

NO REDUCTION IN BREAD’S COST. COMPETITION AMONG MILLERS. By Telegraph—Press Association. Christchurch, Sept. 8. A second reduction in the price of flour in the last three weeks has been made by Distributors Ltd., the move being a further step in the war between mills associated with Distributors Ltd. and those known as free mills. The reduction is 10s a ton on sack lots, the previous one having been 10s on sack lots and 20s on smaller packings. The reduction will not affect the price of bread. The reason for the reduction is stated to be that,established mills have for some time found it difficult to withstand the increased competition of free mills. At the new price of flour it is said that the millers will make much reduced profits, or even no profit at all, but it is stated that the bigger mills are determined to carry on even at a loss until they have regained control of the The makers will benefit by the reduction. They say they have been operating on very narrow margins, and that the reduction of £1 per ton in flour will give them a profit of which price-cutting in the trade has for some time deprived them.