YIELD OVERRUN

Opunake Times, 2 September 1947, Page 4

YIELD OVERRUN

THAT MYSTERIOUS FACTOR BUTTERMAKING IN N.Z. To many butter factory suppliers “overrun” is a somewhat mysterious factor connected with the operation of their butter factory, states an extract contained under the heading “Buttermaking In New Zealand,” published in a recent issue of the N.Z. Journal of Agriculture. In fact, the overrun is the 181 b of water, salt, curd and ash added to the but ter fat. Those constituents would give an overrun of nearly 22 per cent if there were no mechanical losses in buttermaking. But it is impossible to make and market butter without losing butterfat in the buttermilk and without giving away 2oz. of butter to each 561 b box as “trade allowance.” Other unavoidable losses when butter is manufactured cause the overrun to be lower.

A factory overrun can be defined as “the difference between the butterfat that is paid for and the butter that is paid for.” In comparin'' annual payments made by butter companies many factors have to be taken into account, among- them locality, cost of cream collection and other haulage, management, and the quality and composition of the butter. If those items are comparable, the determining factor of the pay-out will be the overrun of each company. No company can do more than pay for all. the butterfat it receives, and, though the pay-out might appear to bo lower, in fact that might not be ao..