BUTTERFAT PRICES

Evening Post, Volume CXXI, Issue 129, 2 June 1936, Page 7

BUTTERFAT PRICES

MARGIN FOE CHEESE

THE GUARANTEED SCHEME

DEPARTMENT'S DECISION

An announcement was made last evening by the acting-Director of Marketing (Mr. G. A. Duncan) that a margin of ljd per pound of butterfat in favour of cheese and butter is to be fixed under the Government's guaran-teed-price plan for dairy products for the 1936-37 season. Mr. Duncan said that the Marketing Department, in making payments to dairy factories for the season, under the guaranteed-price plan, would so arrange payments that the average price to be paid for cheese would be fixed at such a figure as would yield a margin of lid per pound for butterfat processed into cheese above the average price of butterfat processed into butter. The Government had considered the representations made to it in regard to the fixation of the butterfat margin of ljd per pound for cheese manufacture, and agreed that it was desirable that, in order to stabilise the relative production quantities of butter and cheese, this margin be recognised. It was felt that the announcement would reassure suppliers to cheese factories who might have contemplated transferring their supplies for next season to butter factories. Mr. Duncan further stated that the question of types of butter boxes had also been considered, and that a decision had been reached to recognise the regulation sub-standard box as complying with all the requirements of the Department.. For that reason, no additional payment would be made in respect of butter packed in the regula- j tipn standard box. Inquiries had been made regarding the cost of packing in the regulation sawn saranac box, and it had been decided that butter packed in that box would be paid for at 3d per box less than for butter packed in the regulation >■' standard and sub-standard boxes. It was recognised that, in view of the impossibility of requiring the use of onetype of box, it would be fair, by a price adjustment, to place all factories on the same basis, in order to avoid an advantage being given to those which used boxes other than the standard and sub-standard types. In order to enable the required number of boxes to be made available for next season, it would be necessary for the factories to order approximately the same proportionate quantities of each type as during the season now closing. The Government, Mr. Duncan added, had ascertained that if orders for boxes were placed immediately, there would be, no need for further importations of boxes for next season. The Dairy Board had already circularised the factories on this matter. It was, however, essential, in order to obviate delays in deliveries, that no time should be lost in placing orders.