NEW INCREASED PRICES FOR BUTTER AND CHEESE

Chronicle (Levin), 1 October 1947, Page 6

NEW INCREASED PRICES FOR BUTTER AND CHEESE

Press AssociationJ

| Marketing Commission's Announcement

(Per

WELLIN GTON, Sept. 30. A statementi by ' the chairman of the New • Zealancl Dairy prcd'licts Marketing Commission regarding priees for butter and cheese, says: "The New Zealand Dairy Produi'ts Marketing Commission has determined under section 3(5 of the Dairy Products Marketing Commission Act, 1947, tliat by way of an inerease in the farm labour allowance, an additional payment shall be made of 1.71(5(1 per lb on all butterfat in cream or mill; supplied for butter and cheese inanufacture, from November 1, 1946, to July 31, 1947, making the total guaranteed price, witli allowances, 23.391d per lb. butterfat for that period. This will inerease the l'arm labour reward for each adult male unit of labour by l(5s 6d per week, this amount being equal to 15 per cent. uf the existing dairy farm worker's wago of £3 10s per week. It is being allowed specifically in respoet of the fact that work has to be done regularly on dairy farms at weelc-ends and on holidays, thereby applying to the dairy industry the gcneral principle embodied in the extension of the benefits of the 40-hour week as now enjoyed by other sections of the community. The payment oE the retrospective inerease will be made by the commission to dairy companies in the course of the next few davs on returns already subxnitted. New Butterfat Prices The Commission, liaving had regard to the provisions of section .10 of the Dairy Products Marketing Coiumissiou Act, has lixcd the prices to be paid in respect of butter and cheese acquired by it and manufactured in New Zealand from August 1, 1947, to July 31, 1948, as follow: — Creamery Butter Finest grade: ,94 poiuts and over,. 23.977d per pound; 93 to 931 points, 23.852d (basic price). Pirst grade: 92 to 921 points 23.7S95d; 90 to 911 points, 23.(502d. Second grade: 23.l02d. Whey Butter Pirst grudc: 22.832d. Second grade. 22.352d. Cheese Pinest grade: 94 points and .over, 13.21825d; 93 to 931 points, 13.1«S7d. Pirst grade: 92 to 921 points, 13.0(>21 (basic price); 91 to 911 points 12.9995(1. Second grade: 12.S12d. "It is estimated that these prices, which include an inerease in the factory cost allowances, will enable eflicient dairy factory companies to pay snppliers 25.907d per lb. for butterfat for butter manufacture and 27.907d per lb. for butterfat for cheese manufacture. "The structure of the guaranteed price now becomes per 1b. of butterfat: Interest on capital 3.240d, farm work | mg and mamtenance costs ro.uiici, | labour reward 14.196d, cash 27.447 d — j less standard allowance for pigs 1.540d; j total, 25.907d. "The above price represents an inerease in lerms of butterfat of 2.5H5d on the ad.justed ligure for the period November 1, 194(5, to July .'11. 1947. It is made up of .32d for labour reward and 1.99'i(l for farm workin^' and maintenance cQsts. The inerease in tlic labour reward will provide fo: an additional 5s uer .week per aduli male unit of farms labour. The total labour reward equivalent in a farm worker's wagcs, including an allowance. for board aiul lodgings, tlien become? £5 15s per week to which must be added the Kis Gd allowance for worli done at wcek-ends and holidays. Tlt: Dairy Board made representations to the Commission for an inerease in tlie amount provided for board and lodgiiq; to be elTec-tive from the 'date of any retrospective inerease in the laboui reward. After consideration the Commission decided to refer this matter, together witli modilication of the rates of wagcs necessitated by the in crease in Ihe labour reward, to the Ministcr of Labour for submission to the parties couccrned. The inerease of 1.99(5d in farm working and maintenance costs, makes pruvision for ascertained increases in costs

and, in- accordance with Govermnent policy, costs previously met by way oi subsidy. "The largest • factor in these increased costs arises from the passing into the price of fertiliser subsidies for which purpose there is an allowance of 1.54d per lb. of butterfat. This, on :12,0001b of butterfat, provides an additional allowance for fertiliser of £77. This, with similar action in respect of other subsidies, simplifies the position and it can be taken that production costs on existing standards in the guaranteed price structure, are allowed for in the price and that there are no separate farm and factory costs allowances. "As early as the change can -be arranged, payment will be made to dairy companies on the 20th of each month for liutter and cheese graded during the preceding month. The existing unif'orm arraugement of debiting dairy eompanies with two months' storage, wil! be continued but payment is being made earlier for the purpose of assisting dairy companies in their tinances.