BUYING MILK FOR BUTTER FACTORIES.

Taranaki Herald, Volume XXXVII, Issue 8272, 19 September 1888, Page 3

BUYING MILK FOR BUTTER FACTORIES.

A CORRESPONDENT writes to the Waikalo Times as follows :—": — " Ab regards buying of milk, there can be no doubt about the most fair and equitable way to pay for it is in aooordanoe with the amount of cream that it contains, and as the coming season gives promise that butter will be considerably better worth than last season, I hestitate not to say that a company can well nfford to pay 2£3 per gallon for milk with 10 per cent, ot cream, the gallon to contain lOJlb, and if any person supplies milk bf low 10 per cent to allow one-third of a penny for every per cent, deficient, and for every additional per cent, of cream ■born- 10 to be paid 9 40ihs of a penny for, the skim milk to be returned to the suppliers, lesa 15 percent., which would bo allowed for extraction of cream, &o. My reason for suppliers allowing one-third of a penny for every per cent., below 10 is to make them pay some attention at least to their cows, for no properly kept dairy of cowb will give so low a percentage as 10. Aad for pa} ing 9-40ths of a penny for every additional per cent, of cream above 10 is to induce farmers to keep tbe rery best of cows, for a well-bred and a well-fed dairy of cowb will average not less than 13 per cent, of cream to the gallon throughout the factory season, and ft special attention is paid to them they will average considerably more. Another reason for giving 9-40 th of a penny for each per cent, of cream above 10 instead of a farthing, is that a company will get th» same amount of skim milk from a gallon of 10 per cent, as they tvill from 15 per cent. milk. The suppliers on being paia according to percentage of cream, would receive for their milk per gallon as follows: — For 10 per cent, milk, 24d; for IJ, 2 29-40 th; for 12, 2 19-20 th; and for 13 per cent., 3 7-40tb, &c. I think the following results may be confidentially expected by a company who buy milk under the foremenlioned method. I will suppose, Mr Editor, v factory is started, and that there is an average supply of 650 gallons daily, and that the average per centage of cream is 12, and 271bs of 12 per cent, milk will produce lib of butter. I think the company can safely calculate on getting tenpence for their butter. Now, let us see what the result of four weeks 1 operations will be: — £ b. d. 650 gallons daily will be 15,600 galloua for the month, which, at 19-20ths of a penny per gallon will be ... 191 15 0 The cost of manufacturing would not exceed (for the month) 20 0 0 Tbe cost of coals would not exceed (for the month) ... 6 0 0 And for salt, loss on boxes, &o. (for the month) ... 12 10 0 Total cost of production 230 5 0 As I have already stated 271bs of 12 per oent. milk will produce lib of butter; consequently 15,600 gallons will produce 6066§1bs of butter. £ 8. d. 6066j}1b3, of butter, at lOd per lb, equals 252 15 63 Value of Bkim milk kept by the Factory Company ... 2 0 0 Total receipts for the month 254 15 6$ From which deduct total cost of production, viz., ... 230 5 0 Which leaves a profit for tho month's operations of ... 24 10 6$ Or, for the season of 8 months 196 4 5| And, supposing the subscribed capital to be £1,200, it would pay a divi'end to the shareholders of 10 per cent., and leave a balance of £76 4s s£d for insurance, depreciation, and other contingencies. I wonder, Mr Editor, bow long it will be before our formers will learn co-operation, pare and simple, and instead of selling their milk to speculators for the very onremunerative price that they offer, will ran their own factories and save the middleman's profit, which is tbe kernel, leaving only the husk for the farmer.