CHEESE MANUFACTURE

Otago Daily Times, Issue 23690, 23 December 1938, Page 7

CHEESE MANUFACTURE

DIFFERENTIAL PRICE MARGIN PRODUCTION STIMULATED «Peb United Press Association) WELLINGTON, Dec. 22. The relationship between the manufacture of butter and the manufacture of cheese is referred to in the annual report of the Primary Products Marketing Department. After pointing out that the differential marginal payment in favour of butter-fat supplied for cheesemaking is intended to compensate suppliers to cheese factory companies for the comparatively lower returns from the byproducts and for the costs of the delivery of milk, the report states; “ There is evidence to support the contention that the price margin has been effective in arresting the steady decline in cheese production during the past five years. Figures show that in the two seasons immediately preceding the introduction of the guaranteed price procedure the decreases in cheese production were respectively 10.62 per cent, and 7.68 per cent. For the 1936-37 season the increase in cheese production is 3.12 per cent., and for the 1937-38 season the decrease is 3.12 per cent. “ When it is considered that in respect of butter, the decrease for the 1937-38 season is 7.59 per cent, it can fairly be claimed that the present price margin of 2d a pound of butter-fat in favour of cheese has assisted to maintain cheese production,” the report adds.