DECREASED OUTPUT

Manawatu Times, Volume LIII, Issue 6537, 20 February 1928, Page 10

DECREASED OUTPUT

Butterfat Payments ' For January Cream Tlxo influence of the .protracted dry spell in the Manawatu is reflected in a decreased factory output of butter and dices© which lias not been exactly compensated for by increased payouts. While the London market showed a tendency to rise a short while back, and prospects looked bright in that direction, latest advices are that the markets are slow but improving,. Cheese is quoted at 945, and, butter at 164 s which is equal to about Is 3Jd (butter and 83d (cheese) at New Zealand ports. The prospects of a considerable rise have not yet eventuated, but the restricted production should be an important factor in bringing about enhanced prices later on. Wlthput rain, no one can expect a rise to balance the decrease in output. Another important point, however, is the likelihood of Australia buying New Zealand produce in large quantities prior to the imposition of the extra Commonwealth duty next Juno, according to the opinion of dairying authorities. Already one factory in the Auckland district has received an offer of'ls 43d for its March and April shipments and it is believed that this very favourable price has been extended on behalf oi Australian interests. The policy of many New Zealand factories including some of the largest concerns in the Dominion, in exporting non-preservatised butter for some considerable time with complete success, should in the light of the recent prohibition of preservatives in butter, strengthen the position of New Zealand on the butter market. The position is the opposite in Australia, whence much of the butter sent overseas is of a lower grade than the bulk of that from New Zealand and docs not reach the market in such good condition without the use of preservatives. Despite these brighter aspects of the present season, tho position has grown very serious and very many dairymen have been compelled to feed out from their winter reserves already, so that it is just questionable whether a serious shortage of feed will not occur during the winter months. In addition to this the turnip crops have been very disappointing. The opinion has even been expressed that, as a result of the expected feed shortage, during the winter many farmers will be compelled to reduce their herds. The following advances have been made by Companies operating in and around Palmerston North: Awahuri, £12,000; Dairy Union, £9,487; Kairanga, £8,500; Palm, £7,500. " Mangawhata, £2,689 Plus bonus £333. Tui (Glen Oroua) £1,900 Reliance, £1,500. Tokamaru, £1,321. Plus bonus £283. Tiakitahuna, £9BO. Banglotu, ,£704. The price advanced per lb. varies from Is 5d to Is 6d (cheese) and Is 2Jd to Is 3d (butter).