EXCHANGE AND BUTTER.

Auckland Star, Volume LXVI, Issue 271, 15 November 1935, Page 6

EXCHANGE AND BUTTER.

I must apologise for not replying sooner to W. Gray, but this was quite unavoidable Your correspondent's reply shows that I * u quite right when I stated that he should make sure of his facts, as he very begrudgin"ly admits that his estimate of the cost of mainfacture of a pound of butter is possibly a "shade on the high side." He originally stated that the cost of manufacture of a pound of butter was 2Jd. Now he adds "etc." He insinuates I do not understand 'balance-sheets. I do not boast of my knowledge, hut I have had a good deal to do with balance-sheets over a period of 20 years and am even asked to explain points. The Opotiki Dairy Company's balance-sheet definitely gives the cost of manufacturo per pound of butter as ,54d. The cost of cream cartage is averaged over a supply ;of nearly 2500 tons of butter at .23d per la of butterfat, which is less than half of what ■W> Gray states. Does he doubt this figure also 1 When he states he does not take overrun into consideration, I can only expres amazement at his line of reasoning, as this has not made a fraction of difference either way. His argument is hopeless. I understand overrun very well indeed and can state that one pound of butterfat at the Opotiki factory makes 1.22311b of butter and has been shout this mark for years. Your correspondent brings in cost of shipping and selling and the little "etc." again. Why doesn't he include the cost of milking the cows, "etc."! Mr, Gray is only clouding the discussion, and I do not propose to deal with the matter further than to say that the farmers are receiving 25 per cent exchange benefit and no more, without deducting increased costs in a lumber of ways. Will W. Gray please mention the three dairy companies he refers tot : n