BUTTER PRICES.

Star (Christchurch), Issue 12245, 18 February 1918, Page 4

BUTTER PRICES.

QUARREL AMONG PRODUCERS

[From Ottr Courkhcomiext.] WELLINGTON, February 16

„ The butter producers of Palmerston North have issued an ultimatum, showing that they are gravely dissatisfied with the present condition of affairs. 1 his is a sequel to the dispute which lor two months or more lias been troubling the whole of the butter business. M hen the Government arranged the Imperial purchase at lo7s per cwt, and a share in the surplus protit upon butter retailed in England, the factories producing for the local market at mice raised the question of their own returns, which they feared, having regard to the maximum fixed for New Zealand would be less for the year than the return upon exported butter. It was the difficulty which the nuiclin bused levy system of last season was designed to overcome.

Tlio Prime -Minister, after last season’s experience, announced that the levy system would not be reintroduced. Put the situation called for some method of equalisation and the representatives of the producing interests n.eie called to M ollinglon to devise one. hey succeeded in presenting a schema under which the meal factories were to be asked to come in as shareholders in the .Imperial purchase, throwing into the pool the extra profit thev aro now making compared with the export price, and taking their share of tho prospective dividend when the English surplus js_ divided between the Food Urn broiler’s Department and tho New Zealand .exporters. But the two conflicting interests could not bo got to agree.

Now the situation has become somewhat dangerous for the local butter trade. There aro four hundred thousand boxes oi butler in store in New Zealand, unable to he shipped. Had the Imperial purchase scheme not como into operation, tho factories wouldhavo been at their wits’ ends to finance'this Jingo accumulation, worth at least ono and a quarter millions sterling. Thev have been able, thanks to the Imperial purchase, to get an advance up to 90 PfT oe I nt of the value, otherwise their difficulties would have led to local ‘dumping,” and butter would have como down to less than a shilling per pound. * 1

Even now r there is an element of clanger to the quarrelling interest,s - B, C n^ Impol ' ial Government onus 400,(100 boxes of butter stored m New Zealand which cannot at present be shipped. It was quite willing to relieve the troubles of Aew Zealanders in regard to the high price of meat by permitting meat bought under its scheme to ho handed to the butchers at the schedule intos. Avhat is to prevent the Govern, ment from applying this scheme to blitter? Thus there is m the hands of lie Government a powerful lever to keep down (he price of locally sold butter to a fair point, no matter how manv lactones refuse to produce for the local market.

(The Prime Minister stated at Wellington on Saturday that tbs- local market will not he allowed to go bare, nor will the present prices he increased.)