BUTTER=FAT PAYMENT

Taranaki Daily News, 21 December 1932, Page 12

BUTTER=FAT PAYMENT

LOWEST FOIR 40 YEARS THE NEW ZEALAND COMPANY. MANAGER OUTLINES POSITION.. Hamilton, Dec. 20. A decision to pay-out 7Jd per lb butter-fat’ for superfine cream supplied for butter-making and 9d per lb for milk supplied for cheese-making, both for November supply, has been made by the directors of the New Zealand Cooperative Dairy Company, Limited. The advance to the butter suppliers is the lowest made in the Waikato for nearly 40 years. In 1901 and 1902, suppliers were paid 8d and 9d respectively, and in 1903 the payment for the season was 7.89 d per lb. Commenting on the marketing conditions in a circular to be issued with the cheques on Tuesday; Mr. C. J. Parlane, general manager of the company, states: “The butter market is in a chaotic state, the price level to-day being much lower than for many years past, possibly since the ’nineties, and, as very large shipments are due to arrive from Australia and New Zealand during the next few months, it is possible that the bottom has not yet been reached. “With a normal over-run, the present rate of exchange and butter selling at 85s per cwt. in London, the payment to suppliers would approximate Sid per lb butter-fat, and at 80s, approximately Bd. The butter which we made during October, and against which 9!d per lb but-ter-fat was advanced; is now being sold in London at about 85s, and it is obvious therefore that on account of the unexpected fall in market values, the advance of 9Jd was higher than should have been the case.

“Your directors fully appreciate the difficult position in which suppliers are placed, and desire to render every possible assistance, but owing to the uncertainty of the forward position - they are of the opinion that advances should be at a level that will preclude the possibility of either a reclamation,‘ or the necessity for reducing advances during the later months of the season to a very low ■> figure indeed in order to balance accounts. After taking all the factors into account your directors decided that they would not be, justified in advancing a higher rate than 7Ad per lb for finest quality butter-fat for November supply.

“In reference to cheese, the market is in a healthier condition at the moment than is the case with butter, but as the forward position is somewhat uncertain your directors decided that the advance that the advance for finest quality but-ter-fat for November supply for cheesemaking, should be 9d per lb. The premium payable to milk-powder and casein , suppliers will be the same as the previous month.”