CHANGE OVER AGAIN

Bay of Plenty Beacon, Volume 05, Issue 80, 20 July 1942, Page 5

CHANGE OVER AGAIN

MORE BUTTER NEEDED •CHEESE FACTORY'S PROBABLE LAPSE UNITED KINGDOM REQUEST Widespread comment upon the recently released information by the Minister of Africulture, that it will be necessary to retract the efforts made last year in •order to build up the cheese supply to the United Kingdom, and return again to the manufacture of butter, has caused a. -flood of rumours to spring into existence regarding the possible effect upon the newly constructed unit at Pupuaruhe. From the indications at present available it is highly probable that the factory will be closed down in the near future and that farmers will be switched once more over to butter manufacture. In order to assist those producers who will once again be thrown out of their routine the Government has made possible a subsidy of l x /2d per lb butterfat on the new season's supply. Rangitaiki's Position The whole question was ventilated at the extraordinary ' general meeting of suppliers to the Rangitaiki Dairy Company on Wednesday last, when the Chairman of Directors, Mr W. A. MeCracken, requested the company's secretary (Mr R. E. Blair) to read the telegrams which had passed between the company and the Dairy Division. This exchange had been made necessary following the Government's advice to the Dairy Industry that in order to comply with Great Britain's requirements it had been agreed to endeavour to reduce the present annual output of cheese of approximately 150,000 tons to 90,000 tons and to :supply Britain with so far as possible as much butter as she required. The company's telegram to the Dairy Division read: —• i Extraordinary general meeting 'of company's shareholders' called 1 for Wednesday 15th. My directors urge that account of special! circumstances here you reply before meeting stating whether you desire close cheese factory, run one shift, or continue with double shift. # Your definite) reply before Wednesday would enable Directors communication with suppliers personally. Until information from you cannot deal with business for which meeting was called. Reply. The above was designed to clarify the whole position as far as the Rangitaiki Company was concerned and enable the directors to place before suppliers something of a concrete nature as early as possible. Exchange of Telegrams

The following reply was received from Mr Singleton, Director of the Dairy Division: — Owing United Kingdom desiring more butter as replacement of cheese will not require cheese from your factory during forthcoming season. Still Negotiating It is understood that the Dairy Company is still negotiating with the Dairy Division regarding the ,-; cheese factory and that absolutely Melinite instructions to close down Jiave not been yet received, but nevertheless everything seems to point to a complete transfer back from milk supplies to butterfat at a very early date. Pupuaruhe plant, as readers know, is an excellent factory equipped with a modern processing plant and in every way regarded as a first class unit. Commencing operations last September, and then only in a limited quantity, it developed during the course of the season into a highly efficient manufacturing point. Great tilings were anticipated during the coming season when its establishment would have become practically complete.

DAIRY BOARD'S CIRCULAR COMPENSATION TO BE MADE PENNY HALK-I'ENNY IHR LB. In a circular to all Dairy Company Secretaries, the Dairy Board sets out in full the progress of negotiations with the Government in respect of the new development due to the British request for greater butter supplies. This communication was also read at the meeting at Edgeeumbe last Wednesday and excited much interest. After considerable effort by the Dairy Board, entailing several conferences with the Minister for Agriculture, it was pointed out that the reduction in cheese manufacture by 60,000 tons would represent (on the basis that 21bs of cheese are equivalent to lib of butler) would constitute a gain to the butter manufacture of some 30,000 tons. As a result of the deliberations and in recognition of-the resultant disorganisation which would follow the new change-over, agreement has been reached with the Government on the following terms:— (1) That the Government and the Dairy Industry agree to meet the request of the United Kindgom, the Government to aim for a produce tion target for the 1942-4:] season of 90,000 tons of cheese and that as far as possible the industry will be readjusted so as to achieve this objective accordingly, the broad basis of readjustment of suppliers from cheese to butterfat production shall be a return to the 1939-40 status quo, as near as possible, and having regard to the urgent need to conserve tyres ami benzine to the maximum extent posible. (2) Suppliers changed over from butter to cheese in the 1040-41 and 1941-42 seasons and now to be changed back to butter are to receive a special pyament of per lb butterfat on next season's supply sent to butter factories. (3) That additional consideration will be given to the special case of suppliers changed over to cheese factories, which did not commence operations until after 30th November 1941, when the balance sheets of the companies concerned are available for examination. The responsibility of securing the necessary adjustment to a production tarcgt basis of 90,000 tons of cheese would rest with the Dairy Division of the Department, which would work in c full collaboration with the New Zealand Dairy Board. It is considered advisable that the change from cheese to butter production by individual suppliers should be made on a specified date. It is expected that that will be on August Ist next but a definite announcement in this regard will be made as soon as possible.