DAIRYING INDUSTRY

Dominion, Volume 14, Issue 73, 20 December 1920, Page 8

DAIRYING INDUSTRY

OUTLOOK DISCUSSED. The "Tnranaki Herald" lias the following which may bo of interest to dairy farmers What return the dairy farmers will roceivo for their labour in tho season now under way is a question that ia of interest to people other than the farmers, the others including those who say they wish thej; had the dairyman's job of drawing big cheques. The return to bui'l'er suppliers is assured, subject to slight variations in tho cost of manufacture and incidental expenses,'by reason of tho extension of tho Imperial Government control until March 31 nexti. The position with regard to cheese now appears to bo tolerably clear, and it can be reasonably forecasted that at the end of tho season suppliers of both buffer and cheeso factories will roceivo not less than 3s. 7d. per lb. of butter-fat. In a Rood proportion of cases the return will bo greater, in 6omo quite aprpeciably so. This means at least 7d. per lb. of builterfat mere than was received last 6eason under the commandeer. While the outlook remains satisfactory, the somewhat exaggerated hopes that led to much of flhe high-priced buying of land in Tanuiaki have l;y no means been realised, and the present occupiers of many farms aro working -under a tremendous burden of interest. As' rogards monthly pay-outs, butter suppliers are on tho eame basis as ipreviously. With cheeso suppliers tho position varies according to the arrangements mado for disposing of file output. Many of the smaller cheeso _ factories were fortunate in selling early in the season at from Is. 2Jd. to Is. 2Jd. per lb. of cheese, and should be ablo to pay out for the season from 2s. lOd. to 3s. per lb. of butter-fat. Those factories, through having ilioii* monthly advances guaranteed by letter of credit,- are ablo to advance at least 2s. per lb. On the other hand, tho factories that are consigning their cheeso are only ablo to advance about from Is. 6d. do Is. 9d. per lb. but-ter-fat on account of tho market having sagged. With tho probability of cheeso not bringing more than Is. to Is. o£lb., the banks are making correspondingly low advances on shipments. In Tarannlri tho larger cheese factories which wero consigning have in nearly every caso liurned over to buttermaking, or are arranging their plant to onablo this to be done. The controlled prico of 2s. 6d. per lb. of butter will enable factories to pay out from 2s. Gd. to 2s. Bd. per lb. butter-fat, according to tho geographical position, and 1 whothor they work on tho homo separation or tho creamery system. The homo separating system, by eliminating skimming loss at the factory, enables a pay-out of from Id. to 7J<l. higher than in the case of a creamery t<> be made.