ENGLAND'S MILK SUPPLY.

Auckland Star, Volume LXV, Issue 2, 3 January 1934, Page 4

ENGLAND'S MILK SUPPLY.

MARKETING BOARD'S FUNCTION. TRADING WITH SUCCESS. It is generally agreed that the Milk Marketing Board lias negotiated the trials of its first month's trading with success, says "The Times." Producers would, of course, have liked to see higher prices, but with the knowledge that the milk market was on the verge of collapse before the scheme was started they can be well content with returns on a level with those earned last autumn. It may be noted that deductions for rail carriage and handling charges, which are borne by producers, bring the regional pool prices down by about 2d a gallon, and in most cases the farmer is receiving an actual return of 10!£d to 13d a gallon.

In some measure the regional pool prices were levelled by the operation of the inter-regional compensation levy. This was fixed at Id per gallon for all milk sold as liquid milK, and 85 per cent of this levy was allocated to the regional pools in proportion to the quantity of milk sold lor manufacture. The final result is reasonably satisfactory, but it is clear that strenuous efforts need to be made now to raise the value of milk used for manufacture. The consumer of fresh milk is paying his full price, generally 6d or 7d a quart this winter, and it would be folly to handicap the sale of fresh milk by attempting to raise the wholesole price for this category. Manufacturing Milk Drag. The prices realised for manufacturing milk are the drag on the scheme. In October approximately 20 per cent of the milk sold under contract was used for manufacture, and the average price realised Was 5.6 d a gallon. The price for manufacturing milk varies according to its utilisation value, and under the terms of the arbitrators' award milk needed for manufacture into butter and cheese was sold at 4d a gallon, for condensed milk, milk powder and tinned cream at 6d a gallon, for chocolate at 8d a gallon, and for cream and other milk products at 9d a gallon.

As the average price realised was only 5.6 d a gallon, it is clear that an abnormally large proportion went for manufacture into butter and cheese. Presumably the creameries see a better profit in buying milk at 4d a gallon for these purposes than at 9d a gallon for the manufacture of cream, which has to compete with very cheap supplies from Ireland. Experience will show how far it is necessary to alter the scale of prices for manufacturing milk in order to obtain the maximum returns for farmers. i

Only 20 per cent of the total supply was used for manufacture last month. It is generally recognised that production was on a low level after the prolonged drought, and that a higher proportion of manufacturing milk must be anticipated in future months. Furthermore, the board has to consider the necessity of giving some assistance to farm cheese-makers before next summer if the pool prices are not to be unduly depressed by a flood of milk that will make no more than 4d a gallon ; at present values.