LOCAL BUTTER PRICES.

Waikato Times, Volume 113, Issue 18849, 20 January 1933, Page 8

LOCAL BUTTER PRICES.

SCHEME FOR STABILISATION. MR SINCLAIR’S GRATIFICATION. AUCKLAND, Friday. Mr A. J. Sinclair, secretary-manager of the Te Awamutu Amalgamated Dairy Company, Ltd., in an address at the monthly luncheon of tho Auckland Chamber of Commerce yesterday, said: “The scheme for the stabilisation of local butter prices was first placed before the dairy industry seven weeks ago, and the manner in which it has been received has been most encouraging.” Mr Sinclair said the proposals under his scheme would add about £400,000 annually to the revenue of the dairy companies of New Zealand, without having recourse to anything in the nature of Government subsidies. The scheme had been fully explained through the press. Amendments to legislation, enabling the Dairy Produce Board to set up a sub-committee to deal with the local market by regulation could easily put a stop to the senseless and disastrous price cutting at present being carried on by dairy companies. All that was asked was a stable wholesale market.

Set Own House In Order. “ The farmers are asking for assistance from the Government in times of great difficulty,” Mr Sinclair said, “ but they owe a duty to the community to set their own house in order. By rationalisation of industry and a cessation of price cutting by dairy companies they can stop leakages amounting to about £IOO,OOO a year. Now Zealanders, as well as being the largest tea drinkers in the world are also the largest butler eaters. Tiie internal consumption of butter in New Zealand was 23,000 tons last year.” Allowing lid a pound for patting and packing, the wholesale price of butter under the scheme would be 3id a pound above the f.o.b. parity for hulk butter, Mr Sinclair continued. The retail price on to-day’s values would vary between Is OJd and Is lid. in order to stop all factories from concentrating on the local market, the premium of 2d a pound, instead of going only to the supplying companies, could be paid into a stabilisation fund. At Hie end of the year there would be about £400,000 to divide among all companies.

The elimination of price cutting by the companies would bring the total gain lo the producers to about £SOU,000 and to the farmer this would represent an extra id a pound—a snail but much-needed measure of relief, which would enable him lo continue the use of fertilisers and maintain the standard of production. Consumers were merely being asked lo pay a fair and reasonable price for fresh butter.