BUTTER AND CHEESE

Otago Daily Times, Issue 23353, 19 November 1937, Page 10

BUTTER AND CHEESE

NEW MARKETING SYSTEM CUARANTEED PRICE PLAN FIRST YEAR’S OPERATIONS ESTIMATED DEFICIT OF £548,749 (From Our Parliamentary Reporter WELLINGTON, Nov. 18. An estimated deficit of £548,749 19s 9d on the export of hutter and cheese during the first season's operations of the guaranteed price scheme is revealed . in the first annual report of the , Primary Products Marketing Department, which was presented in the House of Representatives to-day by the Minister of Marketing (Mr W. Nash). This represents a reduction on the Minister’s earlier estimate of a loss of £650,000. The position of the produce purchase and sale accounts in the Dairy Industry Account is given in the report as follows: £ s. d. Estimated deficit on creamery butter £561,397 1 6 Estimated surplus on cheese .. .. 18,354 7 6 - Estimated deficit on whey butter .. 5,707 5 9 Estimated deficit in Dairy Industry Account .. .. 548.749 19 9 The accounts submitted with the report are in terms of New Zealand currency and show the operations of the department in the purchase and sale of export dairy produce covering all export butter and cheese manfactured from August 1, 1936, to July 31, 1937. The export quantities are given as follows; Tons. Creamery butter ~ 149,810 Whey butter .. 1,446 Cheese 86,708 HEAVY LOSS ON BUTTER

The detailed accounts show that the complete sale proceeds had been received at July 31 for 3,955,212 boxes of butter purchased by the department for £11,601,452 17s lOd, and after deducting all charges, realising on sale £10,749,869 9s 6d. The shipments for which partial sale proceeds had been received at the end of the season totalled 1,549,036 boxes purchased for £4,554,100 11s 10s. Of this quantity 884,412 boxes were sold for £2,931,661 17s 9d, and the remaining 664,618 boxes in store in the United Kingdom or afloat at July 31 were estimated to yield £2,285,226 on the basis of a valuation of 115 s sterling, less United Kingdom selling charges. The aggregate estimated return, with a deduction of £292,343 13s 7d for freight and insurance is given at £4,924,543 19s 2d. Stocks of butter in store in New Zealand and awaiting shipment at July 31 totalled 488,134 boxes of a purchase value of £1,502,470 Is 2d, and the estimated sale value on a basis of 116 s sterling is given as £1,686,807 14s 6d, which, with a deduction of £91,515 15s 10d for freight and insurance, is estimated to return £1,595,291 18s Bd. The estimated deficit on the grand total of 5,992,382 boxes of butter is placed at £388,298 3s 6d, but this is increased by an estimated payment of £ 16,000 for butter required to be shipped for July 31, a refund of £30,866 17s for the Saranac box deduction, and a charge of £126,202 Is for administration and general expenses, making the total estimated deficit on the sale of creamery butter £561,397 Is 6d.

A note to the accounts states that the produce unsold at balance date has since been realised at prices in excess of 116 s per cwt.

SMALL SURPLUS ON CHEESE The accounts for cheese show that 678,831 crates were purchased for £3,079,932 19s 9d,, giving a net return of £3,078,880 2s sd. . Shipments for which only partial sale proceeds had been received by Julv 31 totalled 356,342 crates purchased for £ 1,604,651 17s 9d. Of this quantity 209.461 J crates were sold for £1,280,043 and the remaining 146.880 J crates, in store in the United Kingdom or afloat on July 31, were estimated to yield £812,478 on a basis of 67s 6d per cwt. sterling less selling charges. With a deduction of £197,234 16s 4d for freight and insurance the estimated sale proceeds are given as £ 1,904,286 10s Bd.

Stocks of cheese in store in New Zealand at July 31 totalled 178,741 crates with a purchase value of £867,880 0s 7d. At a selling basis of 64s per cwt sterling these stocks were estimated to give a net return of £1,126,052 4s 9d. Although a note to the accounts states that the bulk of the produce unsold at balance date has since been realised at prices in excess of 67s 6d per cwt, the total credit balance for cheese is given at £258,172 4s 2d; but from this the following deductions have been made:—Extra payments to meet preferential margin, £165,000; esti mated payment for cheese required to be shipped before July 31. £28,000; proportion of administration and general expenses, £46,817 16s Bd. The net estimated surplus on the sale of cheese is thus given as £13,354 7s 6d. WHEY RUTTER The accounts for whey butter have been dealt with in similar fashion, showing a deficit on sales of £5707 5s 9d, which included an allowance of £1247 Is 7d for administration and genera] expenses. ADMINISTRATION EXPENSES The administration and general expenses account of the department shows a total expenditure of £180,529 14s sd. The most important items are as follows: —Office and allied expenses in United Kingdom, £18,002 2s 9d; office and allied expenses in New Zealand, £17,963 8s 2d; advertising in United Kingdom, £39,048 19s lid; interest on overdraft at Reserve Bank, £56,683 2s 6d.