CHANEE-OVER COSTS

Bay of Plenty Beacon, Volume 05, Issue 83, 27 July 1942, Page 6

CHANEE-OVER COSTS

BUTTER TO CHEESE

COM FEN S ATI ON PI lOVISI ON S

Dairy compares whieh have gained a financial advantage as the result of the transfer of milk supply to them from neighbouring companies in connection with the drive for cheese are required to pay some of the amount to a special industry fund, while on the other hand butter lactones that have been at a financial disadvantage because of the loss of supply are to be recompensed. A ■departmental circular issued last year states "that where a financial advantage has accrued to a chcescmanufacturing company by reason of the transfer of suppliers since June 1. 1940. the amount of such advan* tage, or so much of the amount as: the Minister of Marketing for the season 1941-42 on the recommendation of the Executive Commission of Agriculture shall decide, will be required to be paid by the company to the department as a credit to the special account from which the various payments on account of suppliers and companies will be made."

Mr G. A.-Duncan, director of the export division of the Marketing Department in a recent circular has drawn the attention of dairy companies to the regulation. He states that such cheese manufacturing companies should not make final pay* ments to their suppliers without providing for payments due to the department in terms of that provision.

It is understood that some companies that have already submitted their balance sheets have'not been called upon to make a refund. On the other hand, dairy companies which have had to face increased manufacturing costs caused by loss of supply to cheese companies are being recompensed on submission of their balance sheets.