PRICE MARGIN FOR CHEESE

Hawke's Bay Herald-Tribune, Issue 77, 17 April 1937, Page 6

PRICE MARGIN FOR CHEESE

-Pren Aasociation.)

Factories9 Difficulties Being Watched OUTPUT YAR1ATI0NS

(By Telesrraeh

f WELLINGTON, Last Night. Commenting further on the differential price ^ayable for cheese as compared with butter, Hon. "W. Lee Martin, t Acting Minister of Marketing, said to,day jthat the payments made by cheese manufacturing companies to their supjpliers from. the proceeds of the sale of jtheir cheese at .the present guaranteed price are governed largely by the cheese yields of the individual companies. ! ' T have noticed that the amount of (Cheese made to each pound of butterfat jreceived varies among cheese manufacituring companies from 2.45 pounds to 2.75 pounds, due to the varying butterfat content of the milk received by t|ie cheese companies. This wide range in cheese yields draws attention to tho general question of the suitability of the milk received by the factories for cheese making. I am aware that this is a highly controversial subjeet, but I mention it to ihdicate & likely cause of some cheese companies being unable to pay their supplicrs the margin . of 1 Jd . per lb. butterfat above the price for bntter. "It Bhould be observed that, on the given price for cheese, a company with a cheese yield of 2.55 will pay its suppliers Jd per lb. butterfat more than in 'the case of a company with a yield of •2.45. To quote an instance, a certain .company receives cheese milk of a jbutterfat test of approximately 3.7 per icent., which gives the company a cheese Jyield which probably reaches 2.7. On ithis. yield, and with equal costs and price of cheese, this company should pay its suppliers at least ljd per lb. •butterfat more than wpuld be the case with a cheese yield of 2.45. " The Minister added that the Government recognised- that the- increases iir the workers' wages would affeet tho cheese making costs to a greater extent than butter making costs. He urgea the directors of cheese making companies not to change to the manufacture of butter, and assured them that care wonld be taken that their prico margin (per lb. of buterfat) would be adequate.