BONUS ON BUTTER-FAT.

New Zealand Herald, Volume LIX, Issue 18172, 18 August 1922, Page 6

BONUS ON BUTTER-FAT.

NEXT WEEK'S PAYMENT.

LARGE SUM INVOLVED.

The announcement in the annual report of the New Zealand Co-operative Dairy Company that a progress bonus payment of 3£d per lb. on butter will be made to the company's suppliers on August 25, has created widespread interest, and speculation is rife as to the total amount involved in the payment. The report states that the payment will be made on all butter-fat supplied during the months of December, January and February. The period mentioned! embraces much of the flush of the milking season, consequently the supplies oil butter-fat in those months would be extremely heavy. In a normal season, the supplies from December 1 to March 1 would be very nearly half the total received for the season. The past season, being an exceptionally productive one, both in the early and late months, the proportion of butter'fat received in the months specified probably would not represent as great a proportion of the total yield for the season as ususil.

Of the total production for the year of 18,200 tons of butter, the quantity manufactured in December, January and February should amount to approximately 7000 tons. A bonus of 3£d per lb. on this quantity would involve a total payment of nearly £230,000. , The distribution of this amount among the company's suppliers should be some compensation for the comparatively low advances made for butter-fat during the temporary slump in the London market. The additional payments foreshadowed in the report should also represent substantial totals.