DAIRY PRODUCE.

Ashburton Guardian, Volume 58, Issue 185, 19 May 1938, Page 6

DAIRY PRODUCE.

HEAVY ACCUMULATION REPORTED. ‘ ‘COMPANIES PERTURBED. ’ ’ (Per Press Association.) AUCKLAND, May 18. Dairy companies are seriously perturbed at the heavy accumulation of produce in store awaiting shipment, according to Mr A. J. Sinclair, secre-tary-manager of the To Awamutu Cooperative Dairy Company, Ltd., in an address to the New Zealand Society of Accountants. For some years, he said, it had been established policy to spread shipments over' the flush months; but either this policy _ 'was being carried, out more drastically than usual, or shipping had been very erratic.

■ “Many dairy companies of medium size,” he said, “are paying interest today at 4i- per cent, on overdrafts of more than £20,000 to finance their monthly pay-outs, and heavy hills for storage must be met when the produce is ultimately shipped. . There is a provision in the act which enables the Government to take over the produce at any time, and as credit is obtained through the Reserve Bank at H per cent., the dairy companies contend that the Government should pay for the produce after, say, six weeks in store, since the Government gets the surpluses which accrue from this policy. If the surpluses were ultimately paid to the farmer, this grievance would he minimised ; but it is one of the minor difficulties which the Government could easily adjust, thus making for smoother running of the guaranteed price scheme.