DAIRY FACTORIES.

Star (Christchurch), Issue 16861, 11 October 1922, Page 4

DAIRY FACTORIES.

CHECKING THE RETURNS. (Special to the ** Star. w '> WELLINGTON, October 10. The right of dairy suppliers to secure an independent audit of dairy fac~ tory accounts with a view to obtaining full and accurate returns is the mam feature of an amendment of the Dairy Industry Act introduced by the Minister of Agriculture. The Bill extends tlie definition of dairy factory to cover butter and cheese factories, condensed milk, milk powder and other factories, factories engaged in manufacture « v dairy produce, including skimming stations. buying and receiving stations, and all other premises ancillary to - dairy factory. It is provided that where milk and cream aro purchased on the basis of payment for percentage of butter-fat. the percentage shall be determined by tlie Babcock, Gerber or other prescribed test. DETAILS OF OVERRUN. A certified statement under the hand of a registered accountant must be supplied to suppliers, not later than two months a»ter the close of each financial year, showing the following details (a) Weight of butter (correct to four places of decimals) made from each pound of butter-fat used for manufacture of butter. (b) Percentage which the weight of unsalted butter manufactured bears to the total weight of butter manufactured. * (c) Weight of cheese (correct to two places of decimals') made from end* pound of butter-fat used for manufacture of cheese. Factory weight may be taken as correct, but in i onnection with export cheese shall be checked against the check weights supplied by a grader of dairy produce. ' Within six months o i receipt of the statement any specific supplier may’ apply, through the Minister of Agriculture, for an indepen cent investigation of the correctnes; of the returns. Tlio Minister will then direct on officer of the Audit Department to make an audit, when all facilities must be furnished by the dairy factory proprietors. The auditor may’ examine any factory owner or employee on oath regarding the audit, and an; person refusing to answer any request to comply with the officer’s lawful demands is liable to a fine not exceeding £SO. The cost of audit shall be borne by the person making the application, excepting that in case where the investigation discloses an error of more thar. one-half per cent in the statement regarding weight- of butter and cheese made from each pound of butter-fat. the fee shall he recoverable from tht factory owner. Power is given to make regulations : (a) Regulating sampling, testing, weighing of milk or cream purchased by owners of dairy factories. (b't Prescribing records to be kept or returns to be furnished by owners of dairy factories. (c) Prescribing powers anc duties of inspectors. (d) Prescribing such other matters as are contemplated or desirable for giving full effect to this Act. A clause is added to the penal clause; of the principal Act providing for a, penally to be imposed on any person who sends to the grading store for th;> purpose of being graided R ’V cheese* of which the water-free subtSCTince consists of less than 50 per cent of fat? wholly derived from milk, or who exports or attempts to export such cheese. The provisions of the principal Act relating to co-operative dairy companies are extended to cover all factories for manufacture of butter, cheese, dried milk casein or other article from milk or cream supplied to the company by its shareholders or the collection treatment and distribution for human consumption of milk or cream so supplied to tlie company.