GUARANTEED PRICE

Dominion, Volume 30, Issue 172, 17 April 1937, Page 10

GUARANTEED PRICE

Higher Wages Effect on Cheese-making

ADEQUATE MARGIN PROMISED

Commenting further on the differential price payable for cheese as compared wilh butter, the Acting-Minister of Marketing. Hon. W. Lee Martin, said yesterday:

“The payments made by cheese manufacturing companies to their suppliers from the proceeds of the eale of their cheese at the present guaranteed price arc governed largely by the cheese yields of individual companies. I have noticed that the amount of cheese made to each pound of butterfat received varies among cheese-manufacturing companies from 2.45 pounds to 2.75 pounds, due to the varying butterfat content of the milk received by the cheese companies.

"This wide range in cheese yields draws attention to the general question of the suitability of the milk received by factories for cheese-making. I am aware that this is a highly-eontrover-sial subject, but I mention il to indicate the likely cause of some cheese companies being unable to pay their suppliers the margin of lid. a lb, butterfat above the price for butter. In this connection it should be observed that on a given price for cheese a company with a cheese yield of 2.55 will pay its suppliers jjcl. a lb. butterfat more than in the ease of a company with a yield of 2.45. To quote an instance, a certain company receives cheese milk of a butterfat test of approximately 3.7 per cent., which gives the company a cheese yield which probably reaches 2.7. On this yield, ami with equal costs and price of cheese, this company should pay its suppliers at least 14d. a lb. butterfat more than would be the case with a cheese yield of 2.45.”

The Minister added that the Government recognised that increases in workers’ wages affected cheese-making costs to a greater extent than butter-making costs. He urged directors of cheesemaking companies not to change to the manufacture of butter, and assured them that care would be taken that their price-margin (per lb. of butterfat) would be adequate. GRADING OF CHEESE Manawatu Dairy Companies Suggest Amendment Dominion Special Service. Palmerston North, April 16. The Manawatu and West 'Coast Dairy Companies’ Association decided at its meeting at Palmerston North to place before the Marketing Board, Dairy Division. Dairy Board and Minister of Agriculture, a suggestion that the grading of New Zealand cheese could well be amended. Mr. R. Craig, Orona Downs, said that while the difference between New Zealand and Australian butter on the Home market was from par to a shilling a hundredweight cheese was 4/to 5/- in New Zealand’s favour. This was surely an indication of the cheese being of the quality buyers wanted. On the other hand, while practically all the butter made in New Zealand could secure a premium, hardly any of the cheese was in that fortunate position. In his opinion this was because it was too heavily graded. If the grading were lowered a considerable proportion of cheese should be able to secure a premium. First-grade cheese was between 91 and 924 points, but the guaranteed price was paid only on cheese from 92 to 92J. If the cheese graded between 91 and 914, 7d. per cwt. was deducted from the guaranteed price, said the secretary, Mr. H. 11. Spencer. Cheese grading 93 to 934 secured a premium of 1.2 d. per cwt., and at 94 points 1.5-Jd. a hundredweight.