DAIRY INDUSTRY ADJUSTMENTS

Dominion, Volume 35, Issue 257, 29 July 1942, Page 4

DAIRY INDUSTRY ADJUSTMENTS

The Minister of Marketing, when announcing that the British Ministry of Food had agreed to increase the purchase price for creamery butter and cheese in the coming season, said that it was a prompt, recognition of the helpful attitude of the dairy-farmers m again meeting die wartime needs of the Un ted Kingdom m th respect On the other hand there will be equally prompt recogmtio of the readiness of the British authorities to meet, to some extent, the added costs incurred by producers in their effort to maintain the supplies It is evident, from the figures mentioned by Mr. Barclay, thM the increase of 5/9 per cwt. for cheese, made to meet the cost of the change-over from butter in 1941-42, will be retained during season which will commence on Saturday next, so that the additional 3/- per cwt. sterling for cheese and the 4/6 for butter will b o to offset the loss of the 5/9 per cwt. on the 70,000 tons of cheese, oi the quantity by which cheese production next season falls below the total lt f would Se be°of distinct interest to all concerned in this basic industry if, as soon as circumstances permit, the Minister would review operations for the season now ending. It may not be P oSSlb^ e ’ for somi time, to give the final figures, but there should be ava lable the data on which reliable estimates could be based. Any cheese carried over from the previous season would, presumably, be paid for at the former price, and any carried forward as at July 31 this year will be taken into the accounts at 70/- per cwt. _ The special account, into which the additional 5/9 per ongmaby paid was later merged with the dairy account, and that makes it ti e more necessary that the financial results of the change-over should be made quite clear. There are items of great im P orta ” ce ’ the expenditure made to suppliers to meet capital costs, the sul sidies on cartage on the agreed basis, and the compensation paid to butter companies for the loss of supplies. P A large item in the capital costs will have been the / or enlargement, of cheese factories, and the provision of ho « s accommodation for the staffs. What of the redundant value of the plant that will now not be required? There.is the further question as to the policy to be adopted regarding'this plant. This change-bac from cheese to butter may not be the final adjustment, and P r °^ 10 policy in the Dominion must be adapted to meet the pressing ie ments of the Mother Country. And, as post-war demands canno be anticipated with any definiteness, the retention of an increased dual, capacity may be advisable.