DROP IN PRICE TO DAIRY FARMERS

Press, Volume CVII, Issue 31409, 30 June 1967, Page 3

DROP IN PRICE TO DAIRY FARMERS

(New Zealand Press Association) WELLINGTON, June 29. The Dairy Board is to buy butter from the dairy companies during the 1967-68 season at a price 5 per cent below last season’s price. This is the maximum reduction allowed under the Dairy Board Act.

The price is 24.59 cents (or 29.508 pence). The new price is the lowest since 1951, though it is only marginally under the price in 1958-59 and again from 1960-61 to 1962-63.

The decision was made by the Dairy Products Prices Authority and announced at the Dominion dairy conference today.

The authority told the board that it had fixed the basic price to be paid for creamery butter which the board bought from the dairy companies in the new season at 24.59 cents per lb, equivalent to 29.508 d.

The authority estimated “that the price will enable dairy companies on average to pay to suppliers 26.09 cents

(31.91 d per lb of butterfat in cream (at farm) for butter manufacture.”

Last Season

This compares with an estimated return of 33.9 d last season.

Expressed in terms of pence per lb butterfat, the new price represents a reduction of 1.89 d per lb, which is a reduction of 5 per cent.

However, an increase in factory costs of O.ld per lb has been allowed for, and this results in a reduction in the amount that dairy companies on average will be able to pay suppliers of 1.99 d per lb butterfat