GROUP CONTROL.

Pahiatua Herald, Volume XLIII, Issue 13172, 3 February 1936, Page 3

GROUP CONTROL.

MARKETING DAIRY PRODUCE. DECISION OF CABINET. The Cabinet’s decision on the Hairy Board's marketing plans involving group control of sales in Britain has been communicated to the board and publication awaits the board’s consideration, says the Heist Id's- Parliamentary correspondent. Its members, after a fairly long meeting in Wellington while negotiations were actively in progress, have dispersed to their homes and it will not be possible to secure a full meeting until AVednesdav, February 5. Though assessment of a definite figure as a. basis of the guaranteed price to the dairy producer is not involved in the Government's decision relating to proposed Orclers-in-Ooup-cil, this is the Government s part of the plan. On the basis of the Prime Alinister’s explanation that guaranteed prices to dairy producers should be based on eight or ten years’ average returns, the opinion is expressed by those closely interested in the industry that the guaranteed price stated in terms of butter-fat pay-out would probably bo Is o£d a lb. This is the average of butter-fat returns for eight years . However, if the Government decides to bring in a ten-year period it would appreciably improve the guarantee, owing to the ’fact that in the 1925-26 season there was an exceptional return, enabling the average butter-fat payment to be 18. Bid per lb for the whole season. Thus, if a ten-year basis is adopted the Government would need to guarantee Is lid per lb to dairy producers. EFFECT OF BY-PRODUCTS. By-products would have also to be taken into consideration in fixing the minimum guaranteed price. As suppliers to cheese factories are unable to utilise milk for pig fattening, whereas butter factory suppliers secure through pork-rearing a further advantage estimated conservatively at a Id per lb on butter-fat Xiroduction, it is therefore probable that the Governments scheme will recognise the necessity for a differential payment to cheese suppliers to that extent. Organisation or the dairy pools is no new thing for the Hairy Board officials, who carried out this experiment in the 1926-27 season, when there was a cheese pool, which handled nearly a million crates. It was found possible to make a prompt advance of 6.6 d per lb, and when the final realisation figures were available the full payment to butterfat producers reached 7.7 d per lb, representing in cash for the complete pool £4,8<85,900. Two butter pools were also conducted in the same period, enabling approximately two million boxes to be sold. The advances for these pools amounted to Is Id per lb, and on the comx:>letion of the x >Q ols foud payments brought the total realisation to Is 3£d x>er lb.