The Star. TUESDAY, SEPTEMBER 7, 1920. THE PRICE OF BUTTER.

Star (Christchurch), Issue 20045, 7 September 1920, Page 6

The Star. TUESDAY, SEPTEMBER 7, 1920. THE PRICE OF BUTTER.

——e— A determined effort is being made by f * ho ’q nt * er interests in the Dominion to aecure an increase in tho retail price. Some time ago the Board of Trade decided that the retail price should be is 101b per lb, which is a very substantial advance indeed on tho price which was ruling a few years ago. Tho producers are not satisfied with the r present arrangement, not because it is a bad thing for the country, but because they (the producers) arc not getting enough out of it. A representative meeting in Auckland passed a resolution protesting against ifny further payment being made from tho ; Consolidated Fund to reduce the price i butter in iNcw Zealand, and urging that all restrictions on local sales be removed from October 1. The dairying interests, therefore, demand that tho consumers be placed at tho mercy of the producers, who are bound together by tho strongest ties of self-interest, 1 and have their trade organisations in both Islands. > W’o hope that the Government will consider the position very carefully before a decision is arrived at. Tho British Government has offered to pay 230s f.o.b. for New Zealand butter, and in all probability tho demand of the producers for a free and uniestucted market (x.e., equal conditions with the dairy producers of Ireland and Great Britain) will bo conceded in the near future. It is esti- ■ mated that on tho exportable surplus | of New Zealand butter tho dairy comi panies will be able to pay out 2s 8d j per lb for butter fat—a price that not I so long ago was beyond the dreams of | avarice. There can be no doubt that I tho New Zealand dairyman is making a good thing out of’ the British consumer, hut it is difficult to understand 1 why he should be permitted to exploit the consumers in his own country. Ihere are hints that from the beginning of next month the retail price of butI ter will be from 2s 6d to 3s per pound. If the producer has his “free and unrestricted market ”—which means that dairymen in combination will work to get as much as they can—the price may bo even higher. We contend that there is no defence for exploitatioft of tins sort. The clairy industry has reached its present prosperous position largely through the assistance it has received from the State. It was nursed through its pioneering years, and it is Btill receiving substantial help through tho Government Departments. There is no reason why the price of butter in New Zealand should be based on the price which necessity is compelling' on tho other side of the world. The butter is produced in this country, and it should be considerably cheaper here than after it lias paid freight, insurance and handling charges to tho Old Country. Tho contention that a substantial rise should be allowed because of increased manufacturing costs is not convincing. If that argument is seriously advanced the onus rests on the i producers to prove their case up to tho hilt, and so far they havo not attempted that task.