BUTTER IN STORE

New Zealand Herald, Volume LXXVI, Issue 23269, 11 February 1939, Page 15

BUTTER IN STORE

STOCKS ACCUMULATE DELAYS IN SHIPMENT BURDEN FOR COMPANIES INTEREST AND STORAGE Accumulating stocks of butter awaiting export under the marketing scheme of regulated shipments are expected to cost dairy companies in the Auckland Province some thousands of pounds in interest and storage charges. The produce is not taken over by the Primary Products Marketing Department until it reaches the ship, and, although the Government has sole control over its despatch from the stores, the added costs incurred by delays have to bo borne by the companies. Three large dairy companies operating in South Auckland reported yesterday that- stocks of produce held at present were considerably in excess of the quantities awaiting shipment at the corresponding period last year. It was officially reported on January 1 that export stocks in New Zealand then amounted to 23,600 tons, as against 24,300 tons at the beginning of 1038, and it is apparent that the present_ position has developed only ill recent weeks. Cool Stores Taxed Although official confirmation is lacking, it - is stated by dairying officials that the accommodation of cool stores is heavily taxed by the steadily-mount-ing quantites of produce, and more butter than usual has been diverted in recent weeks to the Horotiu works instead of being despatched to King*3 Wharf and Southdown.

A typical case is provided by the Te Aroha-Thames Valley Co-operative Dairy Company, Limited, which has 23,388 boxes of butter, equivalent to nearly 585 tons, in the cool stores at Auckland. On the basis of the present guaianteed price, tlie value of the produce is approximately £82,400. These figures represent an increase of 40 per cent on the quantities for the same date last season, when 16,759 boxes of the s company's butter, valued at £52,700, -were awaiting export. Experience o! Companies Shipments appear to be about a month behind last .year. The Te .Aroha butter at present in store represents the manufacture in salted batter from December 1 and in unsalted from December 19. At the same time last year the stocks consisted of salted butter made from December 30 and unsalted from January 13. A substantial increase in stocks is also shown by the Morrinsville Co-opera-tive Dairy Company, which has 32,000 boxes ready for shipment, as against 18,000 in 1938. In the case of the Te Awamutu Co-operative Dairy Company the figure is 25,000 boxes, as compared with 12,600 boxes on January 31, 1938, the last butter to be shipped this I season being manufactured in November.

However, the experience of these companies is not general, as an executive of another large dairy concern stated that, while the amount it was holding in store was a little higher than last year, it could not be regarded as exceptional. .The percentage of increase was nothing like sufficient to cause concern. Advances from the Banks

For companies whose produce is held up in considerable quantities, heavycosts are involved, and the opinion was expressed by one man that, if the Government was to commandeer the produce, it should be taken over by the department at an earlier stage. Apart from the extra commitments involved in prolonged storage, companies are required to arrange advances from the banks 011 the store warrants. The rate of interest on these amounts was reported to be 44 per cent, and this involves one company in the payment of an interest bill of *£3 15s a dav. In the aggregate, the amount over the whole of the province is likely to be considerable. > Stocks awaiting export are normally, expected to increase at this stage of the season, particularly under a jrlan of regulated shipments, but it was stated that the individual figures* of companies showed that the present accumulation was greater than usual. However, it was expected that considerable quantities of -produce would be despatched this month for the United Kingdom. When communicated with by telephone at "Wellington last night, the Minister of Marketing, the Hon. W. Nash, said he was not aware of any accumulation of supplies beyond the normal.