EXCHANGE AND BUTTER.

Auckland Star, Volume LXVI, Issue 261, 4 November 1935, Page 6

EXCHANGE AND BUTTER.

Your correspondent "F.R." suggests that I should be sure of my facts before writing. •He should have applied the principle to himself. If he had even an elementary knowledge of the matter he should have known that the cost of cream cartage alone is on an average a id a lb. "F.R." does not understand the balance-sheet and has looked at only one item of same as regards cost of manufacturing, etc. I have before me three balance-sheets. The costs of manufacturing, etc., vary from 2Jd to 2.97 dto f.o.b. I consider that my estimate of the benefit of the exchange on the return to the farmer is, if anything, underestimated, as I did not take into consideration the overrun. One hundred pounds of butterfat supplied by the farmer is converted into 1201b of butter; 25 per cent .increase on the 1201b is 30 per ccnt on the 1001b of butter supplied, on which the farmer is paid. And this without taking ir,to consideration any expenses of manufacturing at all. It is quite possible my estimate of 2Jd per lb for cost of manufacturing, etc., is a shade on the high side, though I think not. This does not include costs of shipping and selling, ctc., in London. W. GRAY.