BUTTERFAT PRICE IN TARANAKI LIKELY TO BE 28.84d THIS YEAR

Wanganui Chronicle, 2 October 1947, Page 5

BUTTERFAT PRICE IN TARANAKI LIKELY TO BE 28.84d THIS YEAR

“Reviewing the whole statement, it appears to be satisfactory, and the commission has done a fair job,” said Mr A. R. Laird (Westmere) last night commenting on the Dairy Products Marketing Commission's report on butterfat payments for the new season’s production. Mr. Laird added that more would be heard of it at the New Zealand Dairy Board conference, to be held in Wellington next week, which Mr. Laird will attend as representative from this district. The Wanganui area includes Waverley, Ngutuwera, Kai Iwi, Rapanui, Westmere, Okola, Wangaehu and Raetihi. “Close analysis makes it obvious that the announcement by the Dairy Products Marketing Commission of the new season s butterfat prices and retrospective payments have been very carefully worked out and should be acceptable as covering adequately increased costs with the removal of subsidies and at the same time providing some labour reward for weekend and holiday employment," stated a Hawera executive officer closely connected with the industry, when asked for comment on the commission's statement. BUTTERFAT AT 28.84 d LB.

On a reconstruction of his last season's accounts, stated a Taranaki dairy company secretary when interviewed, he found that on the new season s prices with adjustments for additional costs due to the removal of direct subsidies, the total costs to f.d.b. came out at 4.65 d lb. butterfat as against the actual cost over the past season, with subsidies added back of 4.06 d. The overall value of the past season’s output at a similar grade was 33.49 d lb. butterfat, so that a nett overall equivalent payout of 28.84 d lb. butterfat was revealed, which was higher by 3.9 d in comparison with the adjusted accounts. In the Press Association statement covering the commission’s announcement, the secretary added, the estimated pay-out was given at 27.907 d lb butterfat, which was the average for the whole of New Zealand. Taranaki dairy companies, however, usually paid out approximately .75d lb. butterfat above the New Zealand average, so that the figure stated (28.84 d could be considered a fairly accurate estimate for Taranaki companies.