2 SEPTEMBER 1938, Page 3

Milk Prices It is difficult to quarrel with the agreement

between milk producers and distributors by which the retail price of milk in the London area is to be fixed at a flat rate of 7d. a quart for the coming year. The new rate represents a slight increase in price to the consumer over the whole year, not so slight indeed as to be insignificant, but apparently not more than is necessary to recompense producers for increased costs, owing to drought, and to maintain the existing supply. Yet any rise in the price of milk is to be deplored ; however small, it hinders the increase in con- sumption which is necessary in the interest of consumer and producer alike. The latest addition to the retail price is further proof, if any were necessary, of the Government's failure to promote that increase in consumption which is, or should be, an important object of policy ; it is the only satisfactory solution to the problems both of nutrition and of agriculture. In this case, the producers cannot be blamed ; the distributors are less free from responsibility. The present system of distribution is needlessly wasteful and expensive ; it is to be hoped the Government will take the first opportunity to introduce its new Bill reorganising distribution, as a first step at least toward reducing the costs which have to be covered by the price the consumer must pay.

* * * *