BUTTER GOING UP

Wanganui Herald, Volume LIII, Issue 160739, 27 August 1920, Page 2

BUTTER GOING UP

WILL SOON BE 2/9. AN IMPERIAL OFFER. ' ON PARITY WITH CHEESE. It ia expected (says the Auckland Star) that the Imperial authorities will finally pay approximately 2/6 per lb for New Zealand butter. If such a price is paid and a free market is granted in New. Zealand on the basis of the price paid by the Imperial authorities, then the local price for butter will probably be between 2/9 and 2/10 per lb. The difference between the present price, 1/9, and the probable price in the near future, 2/9, is so huge that the Government cannot afford to equalise the local, price as it has been doing for the past two years. Paying twopence per lb from the Consolidated Fund to keep butter down in New Zealand has cost the Government, according to reliable information, about £200,000 per annum, and it is pointed out that equalising the price on the basis of 2/9 per lb would cost approximately a million and a quarter sterling, at a time when the Government appears to be rather strained in its finances. This, means that the whole of the increase in the price would have to be borne by the consumer, as the twopence now paid would be too trivial. Cheese has been sold in England at 1/2% per lb, and the Imperial authorities are offering a price for New Zealand butter on a parity with the ruling value the cheese. 1/2% for cheese is 'stated to be on a parity with 2/7 for butter. It is understood that the Imperial Government offered 2/3 per lb for the New Zealand butter, but this was refused, and the new offer is to he as stated. It is pointed- out that the public of New Zealand has been extremely fortunate in having been able to purchase its butter at a low figure for so many years past. The value of English and Irish butter on the Home market is approximately 3/6 per lb, and this price would be even higher if the Imperial Government released its control upon imported stocks. Even at this high figure people have to be content with an individual ration of one ounce per week. The average normal consumption of butter may be taken as half a pound in a week for each individual. At the present time this allowance ,of one ounce per week more than absorbs all the butter England can get. For this reason it is apparent that there will be a market in England capable of absorbing all the available output for many years to come, and (his means a great stability here in New Zealand. America, Prance and Russia, fortaerly great butter producers, have no output now. This accounts for the great shortage. It is very highly probable that the time will soon come when the New Zealand consumer will pay this greatly increased price for his butter, and it is expected that the advance will immediately affect the price of milk. It must be understood also that the coming Imperial offer, which some people have hinted is already in the hands of the Government, is based on the value of cheese. If that falls butter will come down also.'