HELP TO PRODUCER

New Zealand Herald, Volume LXXI, Issue 21938, 23 October 1934, Page 5

HELP TO PRODUCER

AUSTRALIA'S BUTTER I'tAN AN INDIRECT SUBSIDY HIGHER RETURN OBTAINED While tlio Now Zealand "dairy producer is dependent solely on London prices for butter, plus tlie exchange benefit, the Australian producer derives additional benefit from the equalisation plan in ojwration there. Under this scheme, quotas for export and for local consumption are arranged and the higher return from fixed domestic prices is spread over the whole industry. As the production season has not yet reached its peak, the domestic eonsumption in Australia has been almost half the total output, making possible a substantially greater return to the producer. Final figures have been issued by tho Equalisation Committee covering June shipments, and the averago equalisation result works out at 110s Id per cut., as against tho calculated average of 101s lid per cwt., on which the interim adjustment was based. The interim adjustment was made on an expected average price in London of 66s per cwt., but an improvement in the market there resulted in June shipments realising prices ranging from 70s to 76s per cwt. Tho butter output throughout Australia continues to increase rapidly, and the total production at present is substantially greater than that for the same period of last season. Conditions in the main dairying areas are favourable, and there is every prospect that butter production for the six- months, from July to December this' year, will be larger than was obtained during the corresponding portion of tho past season. The record figures for the first six months of tho 1932-33 season arc, however, not likely to bo reached. Exports of butter from tho Commonwealth to tho United Kingdom, from July 1 to September 29, totalled 11,719 tons, compared'with 8876 tons last year. The increasing export surplus has necessitated the export quota for October being proclaimed at 66 per cent, as compared with the 50 per cent quota for September. The Australian Dairy Produce Export Board has decided to regulate shipments to the United Kingdom, and, early in November, a commencement will be made by withholding each week from shipment a percentage of the total gradings.

BRITISH MILK SUBSIDY OPERATION IN MIDLANDS Some idea of the results of the British milk subsidy plan is given by the following report from an English provincial paper, which states: Midland dairy farmers will probably receive more than £200,000 during tho next two years under the Government scheme for providing a minimum price for milk used for manufacturing purposes. Staffordshire's receipts aro estimated at £112,000, Warwickshire's at £52,000, and Worpes|prshire's at £32,000. These figures may bo considerably exceeded, particularly in Staffordshire and Worcestershire. Tho Government advance is expected .to average 10s a cow a year, or lOd a mouth, throughout the country. "In all three regions in which these counties are situated a large proportion of tho milk produced brings only 3-Jd a gallon. In the West Midland region, which includes Worcestershire, about 45 per cent of the supply goes into manufacture; in tho north-west-ern region (Staffordshire) about 33 percent; and in the East Midland region (Warwickshire) about 25 per cent. The sum received under the State grant may exceed the average of 10s a cow in the first two regions, but in the East Midlands it may not quite reach the average. "Staffordshire, Worcestershire and Warwickshire have between them about 200,000 cows. Farmers in these counties aro actually receiving the Government grant at the present time. When the pool prices for April milk were announced producers throughout the three regious were agreeably surprised. One of tho reasons for the unexpected high pool prices was that they included tho Government grant to make up tho guaranteed summer minimum price of 5d a gallon for milk used for manufacturing purposes. This grant amounted to IJd a gallon on milk used for cheese, butter and condensed milk for export, and $d a gallon on supplies converted into milk powder. Daring tho winter months the guaranteed minimum price will be 6d a gallon." STOCK EXCHANGE BUSINESS RESUMES TO-DAY The Auckland Stock Exchange was closed yesterday, Labour Day. Business will bo resumed to-dav. BROWN, EWING AND CO. A not profit of £1025 is shown in' the accounts of Brown, Ewing and Company, Limited, drapers and house furnishers, Dunodin, for the year ended August 15. This compares with £743 in tho previous year. Tho dividend on preference shares is being maintained at 5 per cent, but no distribution is recommended on ordinary shares, which have not participated since 1930. Prior to that tho company paid 9 per ecnt over a long period. Capital is £oo,ooo, including £25,000 in preference shares.