Page 4 Advertisements Column 3

Hauraki Plains Gazette, Volume XXXIV, Issue 4575, 15 June 1923, Page 4

.— BIG — Centralised Factories PAY BEST A big centralised) factory pays the supplier boat because it is cheaper to spread the manufactuiing cost over a lot than a little. Consequently the cost per pound of butter is less, and M.ORE IS LEFT FOR THE SUPPLIER ,Jn the year of the Imperial purchase, all factories received the same gross price ; therefore their final payout depended entirely upon their costs, and not on market variations. These manufacturing costs depended upon the extent of their output. Here are the figures arranged in groups over 20 factories, proving the relation between big outputs and low costs. NORTH AUCKLAND : Season 1920-21. Manufacturing cost Payout IO factories below iJO tons 4-is4d 29.783 d 4 factories 150 to 300 tons 3.1 30*57 4 factories 300 to 600 tons 2.783 3L482 2. factories 600 to TOOO tons 2.552 31-512 NOTE. —As the output increased, the cost of manufacture dropped and the payout rose. But with 13 big factories working together, each manufacturing from 1000 to 2000 tons, and securing the ;f further advantages of : — 1. Bulk wholesale buying of materials, 2. Reduced overhead and managerial expenses, 3. Specialised repair and maintenance staff, 4. And the economies possible by skilled chemical control, the average cost of manufacture was so much reduced that the final payout of the, centralised factories of the N.Z. Co-op. Dairy Coy. Ltd. in that year was 32.3 d, an “ advantage of nearly a penny a pound. THIS IS PROOF POSITIVE OF FACTORY EFFICIENCY This manufacturing advantage year by year 1 is making a definite extra return to suppliers pf big factories as compared with suppliers of, little factories. The New Zealand Co-operative Dairy Company Limited HAMILTON AUCKLAND PAEROA