THE PRICE OF BUTTER. WINTER PROSPECTS.

Dominion, Volume 5, Issue 1383, 8 March 1912, Page 8

THE PRICE OF BUTTER. WINTER PROSPECTS.

In the opinion of a well-known butter merchant, there is no reason to anticipato unusually high prices for butter on tho ]oeaJ ma'rket during the coining winter. I'ceil is plentiful all over the country just now, and tho output is exceptionally good, and should continue so for some time to come. Most of the Home contracts tcrminnto this month, although a few run on to the end of April, so that the.cool Ftorcs should soon begin to fill up. Much, however, will depend on the prices offering in London (luring April,

BUTTER OR CHEESE, OR BOTH ? : POSITION OF 'THE ELTHAM: COMPANY. DUAL PLANT'AUTHORISED. The question of installation of a cheese plant in the Eltham Co-operative Dairy Co.'s premises was discussed at a meeting of shareholders on Saturday, Mr. 11. H. D. Forsyth presiding over the largest moeting of shareholders the company has ever held. Tho chairman, according to a report in the nnwera "Star," said tho meeting was called to discuss the important question of a dual plant. Tho high prices ruling at Home for cheese had led the directors to consider this matter. They had also to take into consideration that the price for butter was high, but the margin between the two showed that cheese had tho advantage, and a very considerable advantage this year. The directors had gone fully into this matter. Thev had got reliable information from a number of sources which had been thoroughly gone into, and had unanimously passed a resolution in favour of the installation of a dual plant. Keferring to the relntivo prices of cheese and butter, Mr. Forsvtk ..said that cheese factories on consignment, will this year pay 3d. per lb. more for butter-fat than butter factories. Another feature which they had to consider was tho manufacture ; of whey butter. This had only recently come in as a by-product. Starter butter had also to be considered. In a factory such as their's whey butter would produce about J2BW, and starter butter 1-J per cent, of the total value of milk, or I his meant over i-'IOOO. According to figures supplied to them by responsible managers of factories, it appeared that the wltcv butter and starter butter produced Id. per lb. more for butter-fat, and there was also the increased moisture in cheese, which was one-twelfth more than five years a»o. If cheese, under the old con--ditions-that' is, when it did not toko advantage of by-products—could hold its own with butter, it surely must morethan hold its own under unproved conditions. The important point in connection with this movement was tho holding of tho company and tho suppliers together. Some suppliers had left them and gone to cheese factories. He thought this was unfair, after having sold their output and entered into certain obligations. If they had a dual plant there was no reason why they should lose any of their- shareholders. They had also to consider that they were bounded by five dairy factories, four ot which had cither a cheese or dual plant. It it was decided to manufacture cheese, it was proposed to havo tho curing done at the siding at the railway station, the cost of the installation would be about .£14,000. This included a cost of .£915, which would have to be spent at four of the creameries, whether they manufactured cheese or still went on with butter. . . . Mr. Forsyth instanced cases of other countries going from butter to cheese, and said that local conditions had to be taken into consideration. This country was better adapted for cheese than butter, on account of the large number of cows they could put into tho small area of country.. Canada was a cheese producing country, and had been expected to make up the market shortage, but as a matter of fact, her exports of cheese to Great Britain bad been on the decline. Denmark was a butter country, and he did not think that she could change. NewZealand was a cheese country, and he felt that they had to come to it. Tho byproducts of cheese were made so much more of now than formerly. It had been asked why some of the directors had changed front on this question. He could only reply that the position had changed. Tho concentration of curing, the increased value of whey, and the increase of moisture were all factors in favour of cheese. They wanted to look at the question from a £ s. d. point of view, and the . directors felt that in the interests of the company there was only one move to make, and that was to install a cheese plant. ... Mr. T. O. Hodgson referred to the reason the directors had changed front, and said that they were lighting to keep their company together. Speaking for himself, he said ho had hitherto advocated tho butter plant, but he was now of opinion that in the best interests of the company, and to keep it solid, thev should have the dual plant. If the relative value of cheeso and butter were anything like tho same next year as it was this, they were bound to lose a. large number of their suppliers, and he did not think they should wait till they were forced, but do it now. The question of finance appeared, to him to be that JUt.OOO would bo required to instal a cheese plant. Tho interest on that at 5 per cent would bo ,£7OO, and allowing for 5 per cent depreciation, that would mean an annual cost of. £UW. If they deducted id. from the price ( of butter-fat for 10 years they would have the plant free. Deducting that and looking at the relative value of cheeso and butter, they would still have Id. per lb. of butter-fat to play with. After a fairly lengthy discussion it was decided by a two-to-one majority that the meeting recommend the' directors to instal a cheese plant.