BUTTER PAY-OUTS.

King Country Chronicle, Volume XXII, Issue 2514, 15 December 1927, Page 5

BUTTER PAY-OUTS.

MARKET DECLINING. INCREASE IN PRODUCTION. “It is indeed very questionable whether factories are justified in advancing from. Is 5d to Is 6d on butter which will not reach Home until after the New Year,” said Mr. W. E. Ben dal 1, a prominent figure in dairying circles in Palmerston North, when conversing with a Dominion reporter. There were, he continued, indications that there would be a big drop in the market after the New Year, and, in fact, a cablegram dated November 26 had stated that the market was then at 172 s to 1765, and was equal to Is 4cl per lb f.o.b. It appeared a little unreasonable, then, that high pay-outs should be made on the assumption that the butter market would pick up; and unless it did recover—preceding events did not give much hope of this—companies would have to reduce considerably to avoid loss on future consignments. “I do not wish to appear pessimistic,” said Mr. Bendall, “but it seems to me that it is a most risky thing to advance such amounts at this time of the year. Production for the season, be said, was well ahead of last year. Taken all round, the increase would average about 20 per cent., and some individual companies showed an increase over their output of last year of 35 per cent. The continued lack of sunshine, however, was producing a rank growth, and the resultant lack of necessary sweetness in the pastures was affecting the flavour of the butter. Although every care was being taken by the farmer, it seemed impossible to avoid this rank flavour. Most dairy companies were picking up cream supplies from the farmer every day, Sunday included, which gavof the farmer a. much better chance of getting his cream into the finest grade, although the daily collection did not by any means ensure this.