DOMINION BUTTER

Hokitika Guardian, 26 March 1926, Page 4

DOMINION BUTTER

DECISION Of EXPORT BOARD. WELLINGTON, .March 24. Iho decision to divide the Dominion export ol butter into two sections under tiie. marketing scheme to be introduced in August: next was reached by the Dairy Produce Export Board to-day. Ibis is necessary because of two main factors: First, tiie different cost ol producing I,utter as between summer and winter; anil, second, because ot tile ditterent price- level that usually obtains at dillerent periods of the vour. Normally the market, for New Zealand butter is highest between June and ( hristmas, as supplies are then lowest, and conversely is lowest between ('hristmas ami June, when our heavy summer production reaches me market.

In order to return io producers any benefit gained by inter production, with its heavier cost, the board decided to establish two '‘pools/* a winter pool and a summer [tool. Then winter pool will comprise all produce received into grading store in New Zealand in the months May, dune, duly, August, September and October, and the summer pool will cover the remaining .six months’ production. To encourage the production of quality butter a. premium of a half-penny over first-grade price will he paid and a deduction of a penny for secondgrade. (insulted butter will command a graduated premium, and a separate •‘pool” will apply for the small quantity of whey butter exported. In the case of cheese, the position is not quite similar, as no premium will be paid for “superfine.” It is difficult on present knowledge to classify “superfine” cheese, but a difference of a hulv-penny a pound will obtain between first and second grade. For coloured cheese a compensating premium to cover the extra cost of manufacture will be paid by the definite encouragement of quality production by the system of extra payment to compensate for extra trouble.

The board hopes to increase the production of high quality butter to be exported and so increase the national reputation. Reports from l.ondou emphasise the superfluity of secondgrade butter from foreign sources that frequently clogs the markets, ami state that the Dominion’s best hope for fullest, success lies in the •‘quality” goods that will lx* a credit to the ‘‘ternleaf" brand under which Dominion dairy produce will Re sold from August onwards.