THE DAIRYING SEASON

Bay of Plenty Beacon, Volume 4, Issue 177, 7 November 1941, Page 5

THE DAIRYING SEASON

OCTOBER BUTTERFAT WHAT WILL THE PAYOUT BE ? topic; of the day on the PLAINS The new cheese factory of the Rangitaiki Plains Dairy Company has been making cheese for for a month. The company, which previously manufactured butter only, will for the first time in its history be di iding its payout for October butterfat between butter and cheese suppliers. The question is being asked by suppliers as to what the advance per lb will' be on November 20. So far there lias been no official statement to suppliers on the matter. In the past suppliers have been receiving advances each 20th of the month on the basis of 1/2 per lb of butterfat supplied for buttermaking. It has been customary for suppliers of cheese factories to receive 2d per lb more than butter factory suppliers, this being allowed for In the Government's guaranteed price for the season's dairj r produce. The margin of 2d is considered necessary to compensate cheese suppliers for various higher costs and the lack of skim milk for pig food. From conversations Avith farmers visiting town during recent days a representative of the BEACON gathered the. impression that the topic of the day out on the"* Rangitaiki Plains is: "What will the payoutbe on November 20th? Will, it be l/2d to suppliers of cream and l/4d to suppliers of milk? Or will it be somewhat less?" Popular opinion, where farmers discuss the question, is that the company will pay out 3/3 to cheese suppliers, and 1/2 (same as usual) to butter suppliers. There appear to be some misgivings lest the cost of starting the new cheese factory at Pupuaruhe, and the probable high cost of collecting milk from a radius of six miles —costs which old-established cheese factories do not have to bear —may be reflected in a lower payout to Rangitaiki cheese suppliers than to Opo-uriao and Waimana cheese suppliers. Another point being discussed is whether something will be taken off the payout to butter suppliers to go towards the cost of running the cheese factory, thus easing the burden on the cheese suppliers. If such should be the > case—and it was advocated by speakers «t meetings of Suppliers held in the winter—then the Rangitaiki butter suppliers would get a lower payout than suppliers of the butter factories at Opotiki, Te Puke and Tauranga. To some extent the Government has assisted dairy companies in the cost of changing over from butter manufacturing to cheese making. A question being asked is: "Do the Government loans to dairy companies cover fully the cost of changing over to cheese making?