DAIRY CONTROL

Hokitika Guardian, 24 May 1927, Page 1

DAIRY CONTROL

WORK OF Till-: HOARD

(BY TELEGRAPH —PER PRESS ASSOCIATION.]

WELLINGTON, May 24. Mr AY. Grounds, chairman of the Dairy Control Board, stated at Pnhiutua that at the end of this week the final payment in the first butter pool, amounting to £7(1,004, would he made available to the factories. An assurance was also given that there would

he no reclamations of any sort or kind upon the factories by the board. On the contrary, there would be definite further payments in respect of both butter and cheese.

Mr Grounds spoke emphatically

against so much press and commercial propaganda directed against the board,

and the “loose statements” made concerning low prices. Through these, he said, “a totally false idea of the economic position of the dairy industry has been created in the public mind. This is reacting against the credit of the industry and is adding to the difficulties of the farmers in relation to finance and is generally creating a had business tone.” He said that in spite of the admittedly lower prices ruling the extra production throughout the dairy season had been so great that the actual cash income of the dairying community would probably exceed the cash income last year. For nine months, from August to April, G 0,456 tons of flutter were graded—an increase of 12.4 per cent over the same period last year. The cheese gradings for the same time were 70,577 tons—an increase of 4.1 per cent This autumn's productions continued good . It was estimated that the total shipments for the full season would he 2,500,000 boxes, or nearly 400,000 boxes (10.000 tons greater than last year. The cheese exports for the full dairy season were estimated to reach 1,080,000 crates, nearly 100,000 crates (7000 tons) above last season’s shipments. The pool, in. respect of which.at the end of this week £76,000 will he paid, consisted of 405,414 boxes and the average. price realised worked out at 161 s 5d per cwt, giving an average ieturu of f.o.b. of Is 3.44 d per lb of butter shipped. The return to the factories would he as follows, per lb of blifter:-—Fine Is 4 l-sd, first- Is 3d 1-Sd, second Is 2 J-Bd. The total sum actually paid out to factories in respect of this pool would be £1.451,880 18s 2d. The sales of butter in the second poo! were proceeding satisfactorily at an average price of 150 s Od per cwt. There was thus a certainty of further payments. The market now stood at 158 s to 100 s. A period of better prices was ahead. American and Canadian sales totalling 100,000 boxes, averaged 170 s (London price), and materially helped the second pool.

in the case of cheese, the sales made had effected clearances of substantially the same grading point as butter—viz., at the end of ,launary those sales represented approximately 50 per cent of the season’s produce falling under the jurisdiction of the board. The average sale price of cheese for the period taken was Sis lOd per cwt. The market price was now 82s to 83s. The prospect ahead was indicated as good. The advance so far received from the London merchants and made available to the factories, was 70s, so further payment to the producers was certain. As soon as the Board was in a position to distribute the funds they would he distributed.

Air Grounds observed tlmt when the Board started functioning last November, the flutter market was at the slump level of 136 s to 138 s. rising to 170 s and now was 160 s. The allegations tn-.i tfio hoard sought to improve uneconomic or arbitrary prices was sheer hypocrisy, as the Danish price averaged 10s above the New Zealand, and had even touched 30s above it. Air Grounds presented an estimate of the dairy income based upon a reasonable continuation of tlm market and the production prosoecls throughout the country, upon the improved prices as follows; 66.-166 tons ol butter (nine months’ grading), at £l6O a ton, ClO.-699.-110 ; 70.577 tons of cheese (nine months’ gradings), at £B2 a ton, £5,-782.38-1 : estimated production of the remaining throe, months of the season, 1(1 per cent of the total, £1.60-0.000; making a. total of £18.081,000. That estimate was for the gross London price, and subject to a reduction lor freight, insurance, commission, etc., which will approximate 10 per cent in round figures.