LOCAL BUTTER PRICES.

Waikato Times, Volume 114, Issue 19011, 31 July 1933, Page 7

LOCAL BUTTER PRICES.

DISPARITY WITH PAY-OUT. DAIRY SUPPLIER’S QUERY. “Why does a supplier have to pay, more for butter in the retail shops than if he gets it at the factory?” was a question asked at the annual meeting of suppliers of the Te Awamutu Co-operative Dairy Company on Saturday. The secretary-manager (Mr A. J. Sinclair) remarked that price-cutting on the local market owing to secret rebates and commissions was largely responsible for the disparity. His local market scheme Was aimed at improving the position. Another supplier: We get only 5Jd per lb for butter-fat and pay Is 5d per lb for butter in the shop. That is too great a disparity. It is better for us to make our own butter at home.

Mr Sinclair explained that the advance payment to suppliers had no connection with the local market price. The advance payment was regulated on the amount secured on export sales of blitter. It wa,s possible for suppliers to buy butler from the factory at the wholesale price. “Even if butter rose to 2s fid per lb in the shops a supplier should he prepared to pay it when he realises that the butter was being sold .in New Zealand at 1 hnt price," added Mr Sinclair amid applause.