DAIRY PRODUCE

Gisborne Herald, Volume LXVI, Issue 20060, 5 October 1939, Page 6

DAIRY PRODUCE

THIS YEAR’S PRICE 1938-39 FIGURE ■ PURCHASE BY STATE REVIEW IF NECESSARY HOLD-UP IN SHIPMENT (PariiimuMitary Reportin'.) WELLINGTON, this day. The Minister of Marketing, the Hon. W. Nash, announced to-day that the prices at which the Government would purchase butter and cheese manufactured during the 1939-1940 season. These were: Butter basic price.—14.89 d per lb. Cheese basic price.—8.42 d per lb. Local prices of butter and cheese will be maintained at a - icvol that would enable dairy companies to obtain a return commensurate with the return from export prices. It was estimated* that on the basis of the present cost of manufacture under normal manufacturing conditions, the payouts to suppliers will be as follows: Butter manufacturing companies.— 15.88 d per lb. of. butterfat. Cheese manufacturing companies.— 17.88 d per lb. The Minister added that these prices in the 1938-1939 season enabled the dairy companies to make payouts to producers on an average of 16jd per lb. for butterfat for butter and 18d per ib. for butterfat for cheese. Fears had been expressed regarding the effect of the present emergency on the availability of shipping and manufacturing costs, said the Minister. It was impossible to foresee these eventualities, but the Government realised that it must protect the producer should an undue hold-up in shipping occur or undue costs be incurred. The prices to be paid would be f.o.b. ocean steamer and were based on normal conditions of manufacture, storage and transport. The Government Would reconsider the basis of payment if an abnormal holdup in shipping occurred, bringing with it any difficulty in arranging finance. Mr. Nash concluded by saying that

the Government had received many j assurances of support from ail classes: of the community. He felt certain ; that all dairy fanners would co-oper- j ate to the fullest extent by produc- 1 ing the maximum quantify o.' butte."J and cheese which seasonal conditions would allow. * ;