BUTTER AT THE SHOP

Taranaki Daily News, 2 December 1938, Page 6

BUTTER AT THE SHOP

RETAIL PRICES VARY

STATEMENT BY MINISTER

A published report that some grocers are intending to charge ls 7d a pound for butter over the counter has been brought to the notice of the Minister of Marketing, the Hon. W. Nash, who described that price as altogether too high and unfair when compared with the rise ir, wholesale rates, states a Press Association message from Wellington. ' Mr. Nash stated that the Government had power to fix the price to the consumer as well as the wholesale price, but added that it had not yet contemplated any action. In Taranaki butter prices appear to be stable and ls 6d a potrnd is generally the ruling cash price. Wellington grocers are reported to be selling at ls 6Jd cash and ls 7d booked, but it is believed that the price observed at New Plymouth will be the rule at most places in the North Isiand. Stratford grocers were charging ls 6d yesterday. Commenting on the position, one grocer said that ls 6d a pound could hardly be called an economic price as it meant a profit of only nine per cent. He considered that the loss grocers would suffer on butter would, as had already been , suggested, be added to the price charged for other commodities. Artificially restricted for some time, butter was finding a price level which was more in sympathy with the general upward trend of the cost of living, he said. The retail price of butter in most Hawera shops is ls 6d a pound. Cash stores are also expected to charge ls 6d. Hawera grocers have decipled that, with a further rise in the wholesale price, they would have to add 2d a pound to recoup their costs. The new retail price for butter has not yet been fixed by grocers at Christchurch but it is likely that there will be stabilisation within a few days, states a Press Association message from Christchurch. In the meantime there are different prices ruling. Retailers do not fear that the increase will mean much curtailment in business and recall that butter sold with little change in volume when it was as high as 2s 3d a pound. Retail profit made on butter recently has been very modest, most retailers claiming that it haS not paid expenses. In most parts of New Zealand butter has been at one time or another the subject of price-cutting and at times when the price-cutting has become fierce grocers have had to sell below cost. With the fixing of the wholesale price retail prices in most centres have been stabilised, but competition among grocers has kept the margin of profit very low.