DAIRY CONTROL

Poverty Bay Herald, Volume LII, Issue 17142, 18 September 1926, Page 5

DAIRY CONTROL

OPERATIONS OF BOARD

PAY-OUT NEXT WEEK THE PROCEDURE OUTLINED (Special to the Herald.) AUCKLAND, this day. Over £250,000 will be distributed among dairy farmers of Auckland next week as advances against butter find cheese now being exported under the auspices of the Dairy Produce Control Board. The payments will he the first to be made under the compulsory sebeme which came into operation on September 1. Suppliers to butter-mak-ing factories will receive the greater part of the total advances. Their share has been calculated at £227,500, the total being made up on a basis of advances of Is 4d per II). butter fat for finest butter, Is 3gd for first giade, and Is 2>j,d for graded" butter. Cheese suppliers will receive £2S,CCO, the basis of payment being 7£d per lb. for finest cheese, 71 d for first grade, and 7d for graded. The vessels which are loading produce in .respect of which the advances are being made are tiie ilemuera.. which is expected to complete on .Monday, the shipping of 15,000 boxes of butter, and the Corinthie, which is expected to complete about the middle of the week the loading of 05,000 boxes of butter and 3550 erhtes of cheese. These shipments will account for practically the whole of the export dairy produce now in store in Auckland. THREE SOURCES OP FUNDS. Dairy farmers have become accustomed to receiving their advances on the 20th of each month, and inquiries made indicate that there is no reason why they should not receive them on Monday in the usual fashion. The dairy companies have three sources of funds against which they may draw advances for their suppliers. Using the bills of lading with respect to produce which has been shipped they may draw against the credits which have been established by the English merchants in the name of the Control Board.- Advances may also be obtained against store warrants, or companies may be able to make arrangements privately with their bankers. The first source will probably be adopted by most of the factories which are shipping bv the Remuera. The bills of lading will he handed to the banks on .Monday, and if the companies so desire they obtain telegraphic authority for local brandies of Iho banks to pay out.

FACILITATING FINANCE

In the case of the Corinthie shipments

there may be a little difficulty, but this will not be duo to the operation of control. Store warrants may be had against some of this produce, but the warrants are valid only so long as the produce is in store. In fact the freezing company will not allow produce to be shipped while store warrants are out, as it is possible that delay in the shipping of butter and cheese may be caused by the holding up of the produce until the store warrants are returned. The Control Board lias made arrangements to overcome any such difficulty. If a bank has made an advance for which

it holds warrants as security the board

ic has agreed to give the bank its own note ■'.'in return for the warrants when it 'ls

desired to-ship the produce, the board’s note being then the bank’s security. It is unlikely, 'however, that there will be any real difficulties, for very few factories have applied for store warrants. There are only a few outstanding, but these are expected to come to hand at any time.. BONUS PAYMENTS. The first of the pools will be closed when the produce made up to the end of September is marketed, this will probably be some time in November, as an interval must be allowed for the grading and shipping of the produce, and the placnig of it in the hands or the consumers in England. When the final sales are made a tally will be made of all the charges against the butter and cheese in the pool, and the balance will be distributed among the suppliers in bonus payments. Advice of final sales, and the amount of charges, will be cabled to the board, so that it is eipected there will be little delay in paying bonuses. With the operation of control, vise is ajso being made of the national fernleaf brand. The fern is impressed on tho boxes in the centre of the description of the contents. The brand is used only pn the finest grade makes of produce. As some factories have csr tablished a- goodwill for their own private brands, the board has permitted them to inscribe their brands above the ' national brands. The New Zealand Cooperative Dairy Company has gone a step further, and is impressing its anchor brand in the butter itself, the impression being protected by the parchment wrapping.