PROFITS OF CHEESE MAKING IN VICTORIA.

New Zealand Times, Volume XXXII, Issue 5197, 17 November 1877, Page 2 (Supplement)

PROFITS OF CHEESE MAKING IN VICTORIA.

The first cheese factory in Gippsland was established in the vicinity of Maffra, about eight years ago, and at the present time there are six : of these establishments carrying on operations in different parts of the district. The profits to the proprietors of the factories are derived from the sale of the cheese, and of the pigs fattened upon the whey, large numbers of fat pigs being sold from each factory every cheese season. The best proof of the profitableness of the factories is found in the fact that since the establishment of the first ;in Gippsland, nearly every year has brought an additional one into existence, ilt is calculated that all working expenses are, covered by Id. per lb. on the cheese, and allowing Id. for carriage, commission, 1 &c., and Id per lb. for the milk, at the low rate of sixpence per lb. the cheese-makers would still have the profit on the pigs, and when we take the prices usually obtained, viz., from Bd. to IDd..per lb., it will be seen that the margin of pjrofit is very large. The companies are generally formed among the formers of the district iii which the factory is to be established. The shares are from £1 to £5 each, and distributed well among the persons likely to be milk sappliers, thus securing their interest in the undertaking. The capital required depends upon the size of the factory. The Briagolong factory has first-class buildings and all the best cheesemaking plant, being designed to manufacture 600 lb. per day. The capital invested is £SOO, £2OO being for building, £l6O for plant, the remainder for land and sundries. The shares in this case are £2 • each. The factory has only worked two seasons, and although owing to the dry weather the seasons were short a profit of 15s. per share has been realised. This factory was let to a tenant who paid the shareholders Old. per gallon on all the milk. The system of letting the factories upon the above terms is pretty generally carried out, it being found to work better than employingOheesemakers, overseers, &c., by the companies. In addition to the. Briagolong factory, the one at Maffra is let to a local tenant, while the Stratford factory has been leased to 1 Mr. Pierce, of Heidelberg, and the new one at Sale'to'Mr. Palmer, of Warruambool. Great difficulty litis been > experienced in establishing new factories to procure good cheese makers, but any ■ district wishing now to introduce the system would not find such an obstacle, as a few persona learn the 1 art every 'season at the Gippsland factories. ■ ' 1