DAIRY FACTORY PAYMENTS

Matamata Record, Volume XIX, Issue 1789, 7 December 1936, Page 5

DAIRY FACTORY PAYMENTS

MR. J. G. BARCLAY’S CHALLENGE Matamata Directors’ Comment Addressing a meeting in Matamata on Monday Mr. J. G. Barclay, M.P., in referring to the guaranteed price, stated that at the end of this season, in his opinion, any well managed dairy factory should payout is id to Is lid per lb butterfat. When a member of the audience questioned the figures, Mr. Barclay added that he was prepared to pay anyone who took up the challenge all under Is lid per lb provided he was paid all over that figure. “A Trifle Venturesome” When asked to comment on the statement Mr. J. E. West, chairman of the Hinuera Co-operative Dairy Co., Ltd., said with a smile that he thought perhaps the speaker was a trifle venturesome. Mr. West stated that in his opinion it was too early to speak with any degree of certainty and that so far as he could see if his own board could pay 13d he thought they would be doing well. Mr. West pointed out that in estimating the final payout there were too many unknown quantities to fix a ■figure with certainty. The award wages for factory employees was not yet finalised, and the price of boxes was not yet settled. Last year Hinuera paid Is lid for butter boxes, and this price was later raised by sawmillers to Is 5d per box. Later the price Was raised to Is Bsd, but after a conference between the sawmillers and the Executive Council they knocked off id. Now his company had received another intimation that the price would be Is 6£d. On Thursday representatives of the industry had a conference with the Executive Council of Agriculture, and Mr. Murdoch had advised that the price would be a little easier than Is 6id, but it was too early foxanyone to say what the final costs would be. The Hinuera Company was advancing Is per# lb. at present, but as an indication of the feeling in other centres, Mr. West said that at the last meeting of the

' South Auckland Dairy Association Mr. Harbutt, of Cambridge, had : given' notice that‘ the advance payout should be Hid per lb. Wfien he. moved the motion a few had agreed with the speaker’s remarks, but at 1 the last meeting it ; had been decided \ to payout Is per lb for the next A three months. This showed that many directors were apprehensive on the matter of costs, and it did not \ look as if they expected to be able '■ to pay Is lid. i Referring to the overrun Mr. West \ thought that a 22 per cent, overrun Was getting near the danger line. In Taranaki a few years ago some lpanagers had produced 25 per cent, o-verrun but that had died down now. A 21 per cent, overrun was a good average figure. However, Mr. West, on the point of leaving for an appointment when interviewed, reiterated that in his opinion it was too early to suggest a final payout with any degree of certainty. He regretted that he was not able just now to give a more considered opinion on the remarks made.

MR, J. BELL’S VIEWPOINT Mr. J. Bell, chairman of the Sunny Park Co-operative Dairy Co., Ltd., Te Poi, when asked if he would care ±o comment, stated that he felt that Mr. Barclay was a bit too optimistic as the whole question of costs was * l in the air.” On last year’s expenses he had no doubt his board could pay out Is lid or over, but this year they did not know what their expenses were going to be and costs Were increasing. Butter boxes had gone up from 7d to 7£d each, overtime for employees was high, and above all it had to be borne in mind that the full guaranteed price was for 94 grading. Some of the produce would touch that figure, but some would be 92i.

Mr. Barclay had painted a nice picture, but even if he were correct in all of his figures there was the fact that individual farmers had to meet far greater costs than formerly. Farm labour cost more, the cost of living had gone up, and totara posts which were £ll per 100 were now £l7 per 100. Cartage were also higher. Mr. Bell said that he would not’ like to have to commit himself too much at the moment, but it appeared to him that Mr. Barclay’s picture ■was too rosy. Sunny Park was a cheese and butter factory, and aabeese. costs would certainly be nigher. Sometimes the cheese vats worked quickly, but at other times more slowly, necessitating overtime.

He had just signed cheques for the past fortnight’s wages, and he noticed that there was £lO overtime for the fortnight, which was a totally new cost. He felt that even If companies did pay more that farmers would be worse off owing to increased costs on the farm. However, it was too early so far as he could judge to express a definite opinion, and he only hoped that the speaker was right.