DAIRY CONTROL

Hokitika Guardian, 31 August 1926, Page 3

DAIRY CONTROL

THE NEW ORDER. SYSTEM OF FINANCE. All dairy companies anil dairy proprietors in New Zealand have been forwarded a circular letter by the New Zealand Dariy Produce Board, advising them that all necessary letters of credit have now been arranged for shipments of dairy produce as from September 1. Special arrangements have been made with hanks, wlifch allow of the credits being held at four centres, viz.. Auckland, N&w Plymouth, Wellington and Dunedin. This will allow of the hoard or its agents making out all drafts, invoices, etc., hut at the same time providing that the proceeds of the drafts

—as far as the advance of the dairy company or proprietor is concerned, being placed to the credit of the dairy company tree of exchange at the

branch of the hank at which the factory’s account is kept. Further, the branch hank will receive its quota of Loudon exchange as in the past* The hoard or its agents will negotiate all drafts, and u 011 doing so will draw for the advance 10 the dairy company, plus the freight, the hoard’s levy and the London exchange. A copy of the invoice which ac-t ! o 111 panics the draft

.showing all these particulars will be sent to each dairy company. When the drnlt is negotiated the advance will he paid to the hoard. ‘I lie London exchange is payable to the hank itself. By sending to the dairy company a copy ol the invoice showing all details. each company isay.s the hoard) will have full particulars of freight and levy paid. Arrangements have been made under which dairy companies will receive advances on store warrants issued by the freezing i-ompanies where the produce is graded immediately these are handed to the hank. These warrants will lie handed to that branch of the dairy company’s hank which is nearest the grading port, who will immediately advise the branch on which the dairy company operates, thus making the advance immediately availaide.

ADVANCE ON .SHIPMENTS. Until further advised the advance on shipment or on store warrants will he as follows: • C'rea mery Butter.—“ Finest,” Ls -Id per Ih; “first grade,” ls 31 1 1 per lb; “ second grade,” ls 3d per lb. Wlie.v Butter.— “First Grade.” Ls Id per lb; “second grade,” Ls per lb. I util further notice the advance 011 cheese shipments will he as follows: Full-c ream factory cheese, “finest.” 7.1il per Ih; “first grade,” 7-fd per 111; “.second grade,” 7d per Ih. A premium of -Id per owl. will lie paid for coloured cheese to cover the cost of making this ( lass ol cheese. This payment will also lie made, when the interim or final payment is made from the pool. Cheese factories arc asked to note that t he hoard wishes them to make, until further notice, approximately two-thirds white and one-third coloured.

WEIGHTS. Tim basis taken will he that butter should weigli olllh 80/.. including paper. Any shortages will he deducted from the invoice showing the advance. Whilst there may he dairy companies who ha vo only been putting 54!b lor. or slilh Goz in the boxes, all will realise that if a common basis is adopted and all results are pooled, no dairy company can stiller in respect of butter weights. It is realised that the shrinkage in cheese is considerably influenced by the quality of the cheese itself. This being so. it will lie necessary for the hoard to debit hack to each company the shrinkages as shown wf'en the cheese is sold in Great Britain. Therefore. the advance 011 cheese will lie made in the specification weights with 110 deductions. FURTfJER BAYM ENTS. The first pool to close will be for butter, and will lie completed when t-he last of the creamery butter graded in October has been sold in Great Britain. Immediately these sales are completed. steps will he taken to pay out the final payment as promptly as possible. In connection with cheese, and. as a matter of fact, with all other pools, interim payments will he made whenever the market warrants, and tli(> final payments adjusted as promptly as possible. All dairy companies will realise that with Ho exception premiums for unsalteil butter and coloured cheese and debits for shrinkage 011 cheese, the further payments from the separate pools will he at an even price per pound lor butter or cheese, irrespective of grade, the differentiation on grades having been made in the advance.