CHEESE PRICE TO RISE

Hawke's Bay Herald-Tribune, Issue 110, 26 May 1937, Page 7

CHEESE PRICE TO RISE

-Pregg &RioeIfttloo.)

Higher Guarantee By State 1937-38 SEASON

fB» TeJtcraph-

WELLINGTON', Last Night, The interim. report of the Guaranteed Price* Investigation. Connnittee teleased to-night states: — Tn woxhing our basie guaranteed price of butter for the 1936-37 export eeason the committee haied its caleulations on an avorage ovorrun of 21.75 per eent. and average factory costs of 2.25 penee per pound of hutterfat. The estimate of factory costs appeared to haye been oit the generous side hy approximately .25 pence per potind. It may he necessary in view of the incre&ses in factory cost» to adopt the figure of .25 penee per pound of butterfat as the ineasure pf increase for the eomplete 1936-37 season. On this pisis the guaranteed prioe of butter for the 1937-38 season should make allowance for factory costs at* 2,25 pence per pound hutterfat and for an ascertained average xun. The hasic guaranteed prioe of cheene for the 1936-37 eiport season wa« coloulated on an average ohoese yield of 2.51 gro'ss and 2.45 net and average factory costs Of 2.75 penee per pound btit--terf&t. The estimate of factory costs iras aconrate^ but in vienr of th® low yields shown by a large numher of companies it may be necessaty to rovise the yield figure in fisdng the basic guhraniteed price for the 1937-38 season. In' jviow of the inere&ses in factory costs !the basic guaranteed price of cheese for the 1937-38 season should maka allowance for factory costs at 3.25 pence per pound butterfat and possibly for a cheese yield lower than 2,51 gross and 2.45 net. The committee eonsidered that as all ihe data it xequired would not be available before *Tuly it should mahe an Initerim. report and a reeommendation regarding the marginal price for cheese lcompared with butter. The committee after reviewing the various factors conceming the iadustry recommended that th® basic guaranteed price of cheese :for the 1937-38 season mll he fixed at ia level that should enable a cheese imanufacturing company that shows a iyield' not markedly below the standard to make an efiectiA marginal hutterfat •return to its SUppliers of not less than twopence per pound over the hutterfat return made by almtter manufacturing company of comparable efflciency operating'tthder comparable conditions. On the aasumption that the- effective butterfat margin that will be realised by Ihe suppliers of whole milk to cheese mauufacturing compauies for the current season will be approximately ono penny, the effect Of the adoption Of the recommended level "will be to increase the effective butterfat margin realised by such suppliers for the 1937-38 season by at ieast a penny per pound,