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FACTORIES OVER-RUN

EXPLANATION OF PRINCIPLE. PALMERSTON NORTH, August 25. “The question of over-run in butter factories has received a great deal of publicity lately, and' I would take this opportunity of briefly explaining some of the fundamental principles in regard to the over-run’s connection with the manufacture of butter and its effect on the actual return to the supplier,” said Mr J. M. McDonald, manager of the Cheltenham Dairy Company, at the annual meeting to-day. “Over-run,” said Mr McDonald, “is the difference between the butterfat the supplier is paid lor and the amount of commercial butter made. AVhen a supplier delivers to the factory a definite amount of butterfat, ’ that butterfat will make, under recognised factory practice, a definite amount of butter, and it will make no difference to the amount of butter’inad'e whether the suppliers are paid for all of the butterfat, half of it, or, for that matter, none of it.

“The over-run is not increased I through more butter being made from I a given quantity of butterfat paid for, J but can only be increased beyond the recognised normal point by using butterfat that is not paid for. “I consider that during the present crisis it. is going to make matters infinitely worse for the dairy farmer himself if the dairy company inflates the over-run to make it appear that the dairy farmers are receiving more than they actually do,” said Mr McDonald in deprecating high over-runs. “It has been proved that in some cases more butter was exported in the finished' butter than was paid for by the factory. This clearly shows that something is at fault, as, no matter how carefully your manufacture is watched, it is considered that 2 per cent, of the fat delivered to the factory is a minimum loss in manuafcture. “It appears to me that a great danger to-day lies in the efforts of some dairy companies, and also many individual farmers, in tryingto make their returns appear higher than they

actually are. In times such as these the closer we can keep to the facts the sooner we will return to happier

Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/GEST19320829.2.42

Bibliographic details

Greymouth Evening Star, 29 August 1932, Page 6

Word Count
354

FACTORIES OVER-RUN Greymouth Evening Star, 29 August 1932, Page 6

FACTORIES OVER-RUN Greymouth Evening Star, 29 August 1932, Page 6

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