BUTTER-FAT PAYMENT

Timaru Herald, Volume CXXXVII, Issue 19372, 22 December 1932, Page 6

BUTTER-FAT PAYMENT

LOWEST FOR 40 YEARS. 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 Co-operative Dairy Company, Limited. Hamilton. 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 cheque-, Mr C. J. Parlane, general manager of the company, states: “The butter marker 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 85/- per cwt. in London, the payment to suppliers would approximate 8)d per lb. butteF fat, and at 80/-, approximately Bd. The butter which we made during October, and against Which 95d per lb butter fat was advanced, is now being sold in London at about 85/-, and it is obvious therefore that on account of the unexpected fall in market values, the advance of 9!d 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 advarlcing a higher rate than 75d 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 ca.se with butter, but as the forward position is somewhat uncertain your directors decided that the advance for finest quality butter fat for November supply for cheese making, should be 9d per lb. The premium payable to milk powder and easein suppliers will be the came as the previous month.”