Over-run in Dairying.

Pukekohe & Waiuku Times, Volume 4, Issue 65, 4 August 1915, Page 1

Over-run in Dairying.

RiO THE EDI LOR]. Sir, —I have read and r.ot.d the correspondence between various writers and the Waikato Cooperative Dairy Compar.y that has appeartd in your paper nf Lte, and also your leader on the in your nsue of the 23rd ult. It seems straige to ire that there should ba strife between cooperators, if thty are such. Why should one set endeavour by manipulation of figures t) show that it has dose belt r than others? The price of butter in London is really the controlling factor, as the science of butter-making is equally wi hin the reach of all, ar.d though there may be at times some little advantage on one side or another, still with oidinary care this should be very liltls. Where in a butter making company all or the great bulk of the shares are held by suppliers, it rs apparent that they take the lisks and share ttie profits. Where on the other hand only a saall proportion of the shares is held by suppliers (.and the bulk by promotes, or other outsiders, the position is widely different, as then the bulk of the profits go in the shape of dividends on capital, etc., acd do not reach the suppliers at all. i cannot agree with the view that the fact of four companies competing for business in the Pukekobe-Waiuku districts will mean for the producers either better prices, greater prosperity, or higher land values. Manifestly the employing of four organisations to do the work of one will enormously increase the cußt of manufacture and probably tha competition at the telling eod will reduce selling values—at anjrate upon the local market. Thus producers will certainly receive less for their butter-fat than they would get if they worked under rne cooperative sjsteni. It is confusion on this poii.t and want of cohesion which spoils farmers' institutions almost every time, 'ihose who are concerned for capital—i.e., suppliers' money—invested in cooperative dairy shares and in maximum returns for butter-fat caonot but deprecate the present position of strife, waste, and overlapping. In making comparisons between various statements one must consider what hearing the over-run has on the price paid or claimed to be paid, and as this is a technical pumt 1 shall largely avail myself of authorities on the subject. Over-run is the difference between "butter-fat received and butter manufactured." The principal factor controlling this difference should be det:rmined by the foreign contents of butter, i.e., curd, salt, and water, the last being limited by law, and, of course, all cimpanies work as near the legal limit as is safe. The over-run, however, is also influenced to an important extent, either up or down, by the weighing, taring and testing, and might be reduced cr increased almost indefinitely. The over-run might be, Bay, 19 per cent, though that is somewhat more than the average. If it is much less it suggests that suppliers have been treated too generously in weighing or testing. If it is much mere it suggests that supplieis have had disadvantages in weighing or testing. The following will show the comparative returns to the producer with different overruns, tsauming, of course, similar conditions at the factory:

First.—lOOOlbs of butter with 19 per cent overrun would contain 8401bs of fat, which at Is per lb equals £42 Os Second.—looo Ids of butter with 15 per cent over-run would contain 8691bs of fat, which at Is per lb equals £43 9s i'hird.—lOOOlbs of butter with 25 per cent overrun would contain 800 lbs of fat, which'at Is per lb equals £4O "s

There may be a decimal fraction out in above quantities, but they are substantially correct, It will be seen from the above that the over-run has a direct bearing upon the uturns to (suppliers. The difference upon the small quantity mentioned between a 15 per cent and a 25 per cent over-run is £3 ( Js, in money value, or 8* per cent. Testing is an important factor in such a variation, but so also ia correct neighing. Suppose in weighing cans of cream half-pounds are not noted, or the tare o{ a can read, say, half a pound over, the supplier might lose un on« pound of cream daily, which at a density of bO per cent, and a price as above of Is would irean 3s 6d per week, or in a season of 40 weeks £7, and would help to swell the over-run. In this way a butter-making concern can be shown to appear to pay a large price for butter-fat while in reality it does not. In a purely co-opera-tive company, where the bulk of the shares are held by the suppliers, this would nut so much matter, as the supplier would receive it in his bonus at the end ol the season. The practice is confusing, however, in comparing with other companies' returns and in any case the principle is obviously wronp, as where the bulk of the shares are held by non-Buppliers, then the supplier loses even when he may think be is getting a greater advance price. The lesson of the whole matter is that companies should be compelled by law to publish their "correct over-run" and close attention should he given to cirrect taring of cans Naturally suspicion must attach to the statements of any Company which does not do so.—l am, etc., G. F. EWING. "Glencairn," Wbangarata, 2nd. August, 1915.