THE DAIRYING INDUSTRY.

Pahiatua Herald, Volume XLIV, Issue 13640, 26 August 1937, Page 7

THE DAIRYING INDUSTRY.

MAURICEVILLE CO-OPERATIVE DAIRY COIn reviewing the past- season’s operations, the secretary (Mr W. P. Carter) states that the final payment was made on 20tli August. During the months August, 1936, to May, 1937, inclusive, the mouths during which the companies have been receiving the guaranteed price for dairy produce, the company has been advancing at the rate of lid per lb of butter-lat for finest. On 20th June a further Id per lb on all grades and with the final of l£d per lb, which has now been distributed, the cash payment to suppliers for the season will be l.s Id lor finest. The amount of distribution is £12,909 IBs 6d.

Suppliers are to be congratulated on the improvement they have made in quality. The number who sent in all “finest” has increased considerably. The large quantity of butter grading 94 and over has enabled the company to earn a substantial premium for quality. If or the twelfth successive season the output of the company shows an increase, the record of 1235 tons 7 cwt having been made. This is an increase tof 56 tons over last season and 980 tons above tin* quantity made in the season 1925-26 when the factory was re-built in concrete in close proximity to the Mauriceville railway station. This growth is remarkable and is largely attributable to the company’s excellent situation, its unrivalled water supply (which is a. gravity one), its strong financial position and the close ivat*h which Js kept on all. expenses, in the 1926-2/ season when wages wore lower .as were also the prices for materials, the output of 260 tons of butter was made at a cost of £2O 13s / d per ton. In the season just ended, with considerably higher wages costs, etc., the cost per ton was L : l2 17 Id, a. decrease ol £7 16s 6d per ton, Avhich is equivalent to approximate! v Id per lb butter-fat. In other words could the 260 tons in 1923-27 have been made for £l2 7s Id per ton the company would have been able to pay out Id more per lb butter-fat than they did. Ihe increased output, plus a factory absolutely free of debt, with reserves earning interest, are factors contributing to the present-

day low costs. Hie chairman or' the executive Commission of Agriculture has stated on numerous occasions that the butter factory with an output ol 1(100 tons and upwards is the most- economical to run This Las Ik'co the actuai experience of Manr mox iffe. When the output was about _<>d tons mark the cost of manufacture was excessive. The secretary (Mr W. P. Carter), whi is also Dominion secretary to the New Zealand Dairy Companies’ Dairy Secretaries Society, has the opportunity (jt examining a large number of dairy company balance-sheets and is m a position to advise anv dairy c nmany sec ret avy or chairman *in what particular, if any, that camcosts are excessive.