Zoning of Dairy Factories

Manawatu Times, Volume 62, Issue 105, 5 May 1937, Page 6

Zoning of Dairy Factories

(To the Editor.) is morning's issue of your paper,, there is a report of a meeting of Cameron's Line suppliers and the directors of the Awahuri Dairy Company in connection with zoning of factories in the Manawatu. At this meeting Mr. D. L. Binns is reported to have said: “ Awahuri’s grading had been very high and above the guaranteed price puiuts, enabling a premium to be secured. Cheltenham’s average grading Lad not reached as high, so that the pay-out would be less.” This disparaging and incorrect statement requires correcting in fairness to the shareholders of the Cheltenham Dairy Company. The position is as follows: Price differentials allowed under guaranteed prices for butter exported are as follow:—Butter graded 93 to 93} points is paid for at the basic rate of 12 and D/16ths pence per Jb.; butter graded 114 points and over receives the basi'j rate plus 1/2 per cwt. This premium payment is equal to £d per ib., and is no donbt the premium referred to by Mr. Binns ‘‘as being above the guaranteed price points” and which he indicated would not be obtained by the Cheltenham Company. The facts relating to the butter grades of the Cheltenham Dairy Company are as follows: All butter which has been graded for export this season by the Cheltenham Company from early in September, 1936, until the present date has been graded from 94 points to 95$ points thereby obtaining the premium above-mentioned. Thus, this payment for higher grade butter will be available to the suppliers of the Cheltenham Dairy Company as probably it will also be available to the suppliers of the other butter companies in the Alanawatu district. It will not, however, be solely enjoyed by the suppliers of the Awahuri Dairy Company. This fact is a matter for congratulation to the dairy farmers in the Manawatu district for the reason ‘‘it is well known that Alanawatu butter has definite flavour and texfure characteristics which make it the best butter exported from New Zealand,” vide report on economic survey of the dairying industry dated Alarch 5, 1936. With regard to the reference made to factory pay-out, there are other influences which affect the rate of payment mentioned. Executives of dairy companies are all fully conversant with these factors. Evidently, dairy suppliers generally are concerned at the prospects of

having to change their factories. In the case of the Cheltenham Company’s suppliers, meetings have also been held in some districts affected by the zoning proposal. At sucli meetings this question has been discussed and strong protests have been made against the suggestion of being transferred from their own co-operative dairy company. Although the discussions at these meetings have not appeared in the Press, the reasons advanced by the Cheltenham suppliers for objecting are in no \yay less potent than that quoted by Mr. Binns. —I am, etc., P. B. DESMOND, (Secretary, Cheltenham Co-operative Dairy Company, Ltd.) Feilding, May 4, 1937.