PRODUCE SHIPMENT

Te Awamutu Courier, Volume 56, Issue 4054, 30 May 1938, Page 2

PRODUCE SHIPMENT

SERIOUS DELAY DENIED. COSTS OF MANUFACTURE. “ The position in Taranaki is not so serious as that; in fact, the produce this year has been dispatched in good time compared with other years,” said the secretary of several North Taranaki dairy companies when the statement by Mr A. J- Sinclair, secretarymanager of Te Awamutu Co-operative Dairy Company, Limited, that dairy companies were seriously perturbed at the heavy accumulation of produce in store awaiting shipment, was referred to him. The position so far as his factories were concerned regarding shipment of produce, he said, was better at present than it was at the same time last year, being nine days ahead. A month ago the shipments were four days behind last year’s. The position would be nearly the same throughout New Zealand to within a day or two, subject of course to movements of ships from one port to another, for the Dairy Board, which had control of the shipping of the produce, arranged to take gradings of butter and cheese up to a certain date throughout the Dominion. The overseas vessel in port at New Plymouth had shipped butter up to 24th March gradings, and cheese up to Ist March gradings. DATE OF PAYMENT. Dairy companies did not receive payment for the produce until the vessel on which it was shipped left the port, so that there would be a variation of a few days from port to port in the date on which factories received payment for their produce. All the factories with which he was identified had been able to make their .monthly advances without exceeding their ordinary overdraft limit. These limits, he pointed out, varied considerably in the case of different companies. Those, that had undertaken building programmes naturally had larger overdrafts. Companies making cheese were not in such a good position as butter factories, for the cheese had to be held on the shelves for three weeks before being graded, and consequently required more financing. Factories, he thought, might have a little more interest to pay than was the case last year, and possibly a little more storage, but the increase would not be sufficient to worry about. INCREASED COSTS. Next year, however, he considered dairy factories would feel the increased costs of manufacture. The increases had not been felt to anything like their full extent this year. For instance, wages costs this year would not be felt so much because the increased award did not operate until 3rd January, when the flush of the season was over. Moreover, the position was to a certain extent offset by the unusual climatic conditions, which resulted in increased production. Next year, however, the industry would feel the full effect of the increase over the whole season, in addition to which it was certain that increased freezing and storage fees would have to be met, and there, would be increased costs of butter and cheese crates, which had not been telt over the whole season.