FARM AND DAIRY.

Taranaki Daily News, 1 December 1921, Page 8

FARM AND DAIRY.

“THE OVER-RUN.” EXPLANATION BY MR. SINCLAIR. . ‘•'What is the over-run?” This question puzzles many people, but a clear explanation was supplied recently by Mr. A. J. Sinclair, assistant manager of the New Zealand Co-operative Dairy Company, Limited. In every 1001 b of butter made, he stated, 201 b consisted of over-run, which cost practically nothing. In a pound of butter there was 16 per cent, of water, the maximum allowed by law; 2A per cent, of salt; and • per cent, of curd and ash. Salt cost £8 i per ton, but was sold as over-run at £2BO per ton, so that the cost was almost infinitesimal. There was a theoretical over run of 23 per cent, in butler, but actually it was less than that. In every 1001 b of butter packed, 11b was added for the “tip of the scale,” in ac- ; cordance with the custom of the trade. Then there were mechanical losses ranging from 2 to 3 per cent. With a 20 per cent, over-run in an output such as the New Zealand Dairy Company’s, there was a wide margin of profit. That wa* why the company could pay 2s 9d per lb foi* butter-fat when butter was sold for 2s Gd per lb. The company’s enemies suggested all sorts of unfair practices, which enabled them to make such a big pay-out, but Mr. Sinclair assured them that everything was fair and above board. The company last • year sold 12,660 tons of butter. Of 1 that amount there were 232 tons re- ! presented by over-run, which cost nothing to make. The value of the over-iun to the company was £709.600. Out of this sum the company could well afford to pay a bonus in exvess of the amount that was actually received for the butter content. Mongolia is the latest country to come forwarcl as a beef-producer. Nearly the whole of the enormous territory is said to be suitable for grazing; land is cheap- ..xd labor is both plentiful and good.