A BIG TRANSACTION

Wanganui Chronicle, Volume LXXXII, Issue 19365, 23 July 1925, Page 3

A BIG TRANSACTION

INSURANCE OF DAIRY PRODUCT. Marine insurance of butter and cheese valued at £18.000,000 (taking last year’s figures) has been arranged |by the New Zealand Dairy Control Board, with Lloyd’s Underwriters, I London. The cover will supersede the current contract, shared between the ! New Zealand Underwriters and Lloyd’s I Underwriters, and will commoEw 1 from September 1. next, and be for i twelve months from that date. The ! expiring contract Wits made with lhe I Dairy Control Board, on behalf of tho • New Zealand Underwriters’ Association, by the Commercial Union Com--1 pany, which issued an open policy for ’ £625,000 and an additional policy : f | £200,000; and Lloyd’s in London also issued a policy for £175,000, cover on each shipment being made in that portion. The cover under the new contract which Lloyd’s will carry alone i? for £1,000.000. Tho now rates of premium are slightly higher, but tho conditions as affecting the industry as a whole are rather more favourable than those of the current contract. The nex rates and the old compare as follows; 1925-6. 1924-5. Per £lOO. Per £lOO. Butter .. 7 s 9d 7s o<l Cheese . . 9s 9d 8s 6(1 Tho current rates carry an additional Is per cent, in the case of butter and cheese coming coastwise for transhipment into Home steamers; the now rates will operate as from all ports whence the produce is shipped, either into the deep-water steamer at the lesser ports or into the holds of coasters for transhipment at tho main ports. New rates, in short, will apply to all ports. The extra premium for additional time of produce in store, either in Now Zealand or at destination will be the same in tho new as in the expiring contract. Produce will bo covered from the time tho milk or cream is received into factory until 30 days after the arrival in London of cheese or butter, as the case may be.

Insurance on produce sold locally or to countries other than Great Britain, Europe, or tho East Coast of North America will not be covered by the new contract. Each company will require 1o make its own arrangements in such cases. Tho insurance of Now Zealand butter and cheese for the United Kingdom under tho existing contract, it is true, is shared between insurance companies in New Zealand and Lloyd’s Underwriters. but. the loss of part of premiums—amounting in the aggregate to possibly £84,000 —is a matter for serious thought to the companies in business in this Dominion. For tho balance of the season, January 1 to June 30, 1925. tho quantities of produce graded for export show an increase on tho, figures for tho first six months of 192 C The Dairy Division's figures of gradings for the eleven months ended June 30, which can bo taken as ropresentaing a full year, were as follows:—• Tons. Tons. 1925. 1924 Butter .... 69,861 61,213 Cheese .... 69.809 72,810 Increase in butter, 14.1 per ccnt.J decrease in cheese, 5.4 per cent.; increase in butter fat equivalent, 7.1 per cent.: production of butter and cheese, or, at any rate of milk, is expected to be greater this year than last. These figures are quoted to show the extent of the export produce to be covered by marine and other insurance from entry into the factory to its overseas destination.