SEASON’S TRADE

Wairarapa Times-Age, 23 December 1938, Page 9

SEASON’S TRADE

AVERAGE PRICES & OTHER DETAILS EFFECTS OF DIFFERENTIAL PRICES. PROGRESS IN MARKETING ORGANISATION. An estimated surplus of £555,185 for the 1937-38 season is shown in the Dairy Industry Account, details of which are published in the annual report of the Primary Products Marketing Department. This report marks the completion of the second year’s operations of the department. It states that the new marketing procedure has resulted in savings in costs of marketing amounting .to approximately £200,000 a year. The payment of guaranteed prices for butter and cheese had given dairy-farmers Stability and security by protecting them from the effects of fluctuations in market prices for dairy produce. The accounts for the 1937-38 season cover all export butter and cheese which was manufactured from August 1. 1937, to July 31, 1938, the quantities being:—Creamery butter, 137,542 tons; whey butter, 1,796 tons; cheese, 83,078 tons. The approximate average f.o.b. purchase prices paid or payable for this produce in terms of the Primary Products Marketing Act are as follows:— Creamery butter, 13.7122 d a pound; whey butter, 12.608 d a pound; cheese. 7.769 d a pound. AVERAGE PRICES. The approximate average f.o.b. realisations for produce (actual and estimated as shown in the accounts are as follows: —Creamery butter, 14.0576 d a pound; whey butter, 13.2847 d a pound: cheese, 7.8986 d a pound. In the compilation of the accounts butter and cheese unsold at balance date were taken in at the following values.— Creamery butter (shipments partially sold): 120 s a hundredweight sterling gross. Creamery butter (in store awaiting shipment): 110 s a hundredweight sterling gross. Whey butter (shipments partially sold): 110 s 6d a hundredweight sterling gross. Whey butler (in store awaiting shipment): 100 s a hundredweight sterling gross. Cheese (shipments partially sold): 70s 3d a hundredweight sterling gross. Cheese (in store awaiting ship-sold): 70s 3d a hundredweight sterling gross. The accounts submitted comprise separate purchase and sale or ‘'Pool" accounts for creamery butter, whey

butter and cheese; administration and general expenses account; Dairy Industry Account; and balance-sheet. The purchase and sale or “Pool” accounts show the purchase value of the produce, and the sale value less sellingcharges, freight and insurance. To each purchase and sale account Is charged its proportion of the total administration and general expenses, amounting to £192,141. ADMINISTRATION costs. The administration and general ex? penses account shows the itemised expenses and charges in the United Kingdom and in New Zealand. It is stated that the itemised expenses for the 1937-38 season are not comparable With the corresponding items in the accounts for the 1936-37 season, because the department was not fillly organised and staffed at the beginning bi that Season, tn the advertising, publicity, and salesprofnotion section of the report reference is made to the increase in the financial allocation for these activities, the expenditure being £81,259, compared with £39,049 for the 1936-37 sbasbn. the Dairy Industry Account Shows the position of the produce purchase and sale accounts as follows:—

38 seasoil £555,185 The balance-sheet is drawn Up in the usual form to show liabilities and assets as at July 31, 1938. SINGLE-UNiT SYSTEM. “It is pleasing to record that the success of the policy adopted in the marketing bf butter and cheese, which was clearly indicated in the first year after the inauguration of the new procedure, has been fully maintained," states the report, “‘Merchant-agents, dairy industry officials and other qualified to judge are in general agreement as to the soundness of the single-unit system of marketing, with general sales instead of sales by individuals dairy factory companies, and with consignment selling in place of the mixed consignment and f.o.b. and c.i.f. selling, which was a disturbing feature in the marketing system of the past. The distribution of butter and cheese in the United Kingdom has been widened by means of a belter direct shipment service to the main ports. “The fixed and uniform monthly rate of payment for butterfat that dairy factory companies have been able to maintain enables dairy-farmers to budget with certainty for their farming and domestic expenditure. The guaranteed price policy has Worked smoothly. ahd the administrative procedure has been conducted without a hitch. PRICE DIFFERENTIATION. “The basic guaranteed purchase prices for butter and cheese are subject to additions and deductions according to the quality of the dairy produce as disclosed by the grading points awarded by the Government graders. The experience of the past two years justifies the continuance of the price differentials. They provide an incentive for maintenance and improvement of quality, which is appreciated by representatives of dairy factory companies.”

£ £ Estimated surplus oh creamery butter 443,398 Estimated surplus oil cheese 100,447 Plus estimated surplus on whey butter 11,340 — 111,787 Estimated surplus, Dairy Industry Account, 1937-