Milkfat pay-out

Press, 14 July 1978, Page 6

Milkfat pay-out

There is no need for any confusion on the 1978/79 milkfat price payout, says the genera! manager of the Dairy Board, Mr B. K. Knowles. i The chairman of the ; Dairy Board, Mr A. L. ' Friis, has made it clear i that the board will be ■ paying dairy companies I prices for their manufacI tured products which will enable companies on average to pay 165.72 cents per kg of milkfat at the farm for wholemilk without any end of season payment. The difference between ; that and the Government’s i guaranteed payment of i 180 cents is 14.28 cents. ! This additional payment 1 will come from the Dairy Board’s anticipated end-of-season payment, and if the available surplus from the board’s trading does not equate 14.28 cents, the Government will add the rest. The 180 cents is an in-

dustry average payment for wholemilk. Some companies will make, it, others will not. Some companies, because of their natural 1 advantages, management | skills, or a favourable ! product mix, will be able i to make a payment higher ! than the industry average. , Others because" of their ; special circumstances, or their transfers to reserves I or other factors, will pay ' less than the average. The Government guarantee is an assurance to the industry that on average dairy farmers will receive 180 cents, not that every dairy fanner will receive that rate of payment. In the 1977/78 season ! the farmer received • through his company an j advance based on" 150 j cents per kg of fat and an end-of-season payment of i 16 cents. In 1978/79 he 1 will receive an advance ! based on 165.72 cents and i a final payment of not ; less than 14.28 cents.