LOSS TO FARMERS

Waikato Times, Volume 122, Issue 20522, 11 June 1938, Page 12

LOSS TO FARMERS

LOCAL BUTTER MARKET OVER £97,000 TO MARCH (By Telegraph.—press Association) INVERCARGILL, Friday The dairy farmers of New Zealand are losing heavily because the price of butter soid for New Zealand consumption is based on the guaranteed price, instead of on the London parity," said the president of the Southland provincial executive of the Farmers' Union, Mr A. R. Johnston, when speaking at the annual conference to-day. "tor the past 15 weeks there has been an average lons to the dairyfarmer because of the guaranteed price of £l2 19s 2d a ton of butter sold for New Zealand consumption," said Mr Johnston. "The average consumption of butter in New Zealand is 500 tons a week, which means that ihe difference between the New Zealand juice and Jhe London parity amounts Io the huge .sum of £6*79 1 week. Since the beginning of March to the present time the loss would appear to be over £07,000. "The guaranteed price has not turned out the boon that was anticipated, and the resulting dissatisfaction has fostered an agitation for a compensating price. The mounting surplus in Ihe season’s dairy account and the loss to the producer through the price of butter for local consumption being based on the guaranteed price instead of on the London parity are causing the dairy industry furiously to think."