Peak Butterfat Prices May Have Been Reached

Chronicle (Levin), 13 August 1949, Page 3

Peak Butterfat Prices May Have Been Reached

A warning to suppliers to pay ofE or reduee their mortgages and overdrafts while money was pientiful, as he believed the day was coming when there would not be so much money about, was given by Mr J. Boyce, c'hairman 'of dirActors, at the annual meeting of the Tui Dairy Company on Wednesday. ' 1 Our only market, ' ' he said, 1 ' is G-reat Britain and she faees an economie crisis owing to the dollar shoftage. We can expeet, I thinlc, a sharp reduetion of imports from the hara currency areas as a result of the recent conference' of Ministers. This, .in tnrn, will have a boomerang eifect- on Great Britain 's exports and must eventually affeet our prices. Mr Boyce said the past- season had been one of the best expe'rienced from the point of view of feed and this; h&jd been reflected- in production. Also, thje price paid for butterfat had been; tl\e highest for many years and. he could not help thinking the peak had been reacned. The quantitv of cheese manufaetured during the year amounted tto 334 tons 14c wt 371bs and showed an inerease of 87 tons 18cwt 231bs on last year's figures. The cost of manufacturing showed an inerease of ,.756d and was due to the inerease in wages and the inerease in the price of materials. During the season the monthly advanee was 24d for first grade butterfat and it was proposed to make a further payment of 5.25d per 1b on butterfat used for cheesemaking, making a total pavment of 29.25d per lb.

' ' With the setting up of the Dairy Commission," Mr Boyce continued, "many inequalities have been straightened out and it will be noted that an increased price for butterfat has been secured for this year. The seven-year contract, although subject to revisions as regards price to a 7ft per cent. variation . up or down each year, certainly tends to stabilise the industry and prevSnts those large fluctuations thajt were experienced some years ago. It will be noted also that the commission has been successful in sec-uring a fairly long-term contract at, what must be considered a verv satisfactory price for buttermiik powder and ^everal plants are being installed in the Manawatu and adjacent dHstricts. This again will mean that cheese factories will need to keep a watchful eye on the price paid by the commission i'or butter and cheese as it is imperative that at least a margin of 2d must be maintained if the quantity of cheese is to be kept at its present level. ' ' A lengthy discussion on the proposed veterinary service resulted in the meeting resolving that the company become a member of the group proposea to be established with headquarters at Rongotea. At a subsequdnt meeting of directors Mr J. Boyce was re-elccted chairman.