8;o 



READINGS IN RURAL ECONOMICS 



Difference between price to farmer and to consumer = 19/6 per 112 pounds or 

 $4.18 per 100 pounds 



need it. Their price is always lower than the price of any other 

 private store. During August, 1913, they sold butter for is. 2d. 

 (or 28 cents a pound) while the ordinary stores sold it for is. 4d. 

 (32 cents a pound). 



The competitors of this company say that it sells its butter at 

 this low figure only to make a reputation for cheapness, and that 

 it makes its loss good by its margarine sales. 



A view of the buying and selling price is as follows : 



Price farmer gets . 

 Price creamery gets 

 Price consumer pays 



104/6 per cwt. or $22.40 per 100 pounds 

 1 15/- per cwt. or 24.61 per 100 pounds 

 T 3/- pe r cwt. or 27.85 per 100 pounds 

 25/6 $545 



This table shows the difference in price to be 255. 6d. per 

 112-pound cask. Of this, los. 6d. goes to the making of the 

 butter and about 2s. 6d. for freight (for London). This leaves 

 I2s. 6d. margin for the Maypole Dairy Company. Of course this 

 margin changes frequently, as the retail prices are not changed 

 with every change in wholesale prices. 



