BUTTERFAT PRICES,

Auckland Star, Volume LVII, Issue 9, 12 January 1926, Page 4

BUTTERFAT PRICES,

REDUCED PAY-OUT. DUE TO DROP IN MAItKET. {From Our Own Correspondent.) TE AW___UTU, Monday. It is considered in well-informed circles to bo extremely probable that there will be a reduction in the next monthly advance payment _ from the dairy companies operating in various parts of the Dominion, not excepting those in this part of the Waikato. This is on account of the drop in tbe prices of dairy products on the London markets, where prices have been at a low level for several weeks now. A local business man who bas made something more than a passing study of tbe dairying industry informed a press representative Yesterday that the reduction in pay-out would probably amount to threepence per lb butterfat. The factories that bad not already sold their output would all be affected. The Kake- » puku Dairy Company's suppliers will not be affected, for they are in the happy position of having their advances assured for some time, -their directors having sold the whole output of the factory up° to the end of last month, at a price that will ensure a payment of approximately 1/0 per lb, with a further substantial payment later on. Whether the Kakepuku directors will be able to dispose of the remainder of this season's output at a price anywhere near that ' obtained for the first half of the season is doubtful, but in any case suppliers will have had an undoubted advantage over dairymen in other parts of this district so far, and thus any reduction operating for output since January 1 will not hit them so hard.