BUTTER AND BACON.

Star (Christchurch), Issue 16625, 6 January 1922, Page 4

BUTTER AND BACON.

PRICES TO COME DOWN AGAIN.

Although the prices, for butter, bacon and cheese were reduced by 2d per lb on Wednesday, the reductions do not represent the maximum drop that can take place in these lines, and there is every probability that during the next few days there will be a further decline in prices. In Wellington the best quality butter is being retailed at Is 3d per lb, compared with Is 5d for the same quality in Christchurch and Is 7d in Auckland. The Wellington price gives the producers a return a trifle above the London parity, and in the opinion of retailers in Christchurch no justification exists for the higher prico in this city. From inquiries made this morning it was ascertained that no further reduction has yet been decided upon l>y the factories, but the indications are that there will bo a drop, similar to that which has taken place in Wellington within the next few days. Most of the local butter factory managers were present at the conference held at Wellington yesterday, when it was deicidod to purchase the surplus stocks of butter hold by the Imperial Government. As regards bacon there is also a big probability of a further reduction during the next few days. This due to North Island competition, the North TsTnnd bacon factories quoting a lower price than the local factories. (Theos© i s another line which will the crisis cm the London market. The come down in price again, owing to present retail price for the best quality cheese is Is per Tb. PRICE OF MILK. “‘While reductions have been taking place in the retail prices of butter, cheese and bacon, the three principal dairy produce lines, nothing is being heard of a reduction in the price of milk/’ remarked a grocer this morning. “ A reduction seems to be long oveidue, and apparently the dairymen are hoping to recoup some of their losses by keeping tho price up. When dairy farmers were receiving 2s 6d a lb for their butter, milk was being retailed at 7d per quart, but now that butter is worth only about Is a lb, the price of milk is still beng kept at 6d per quart. Taking tho values of butter and cheese as a guide, milk should now be down to 4d a quart, and at that price the milk is still being kept at bd per quart, than those dairy fanners who supply cheese and butter factories.’*