PAY-OUT TO PRODUCERS.

Taranaki Daily News, 21 January 1922, Page 4

PAY-OUT TO PRODUCERS.

BIG DECREASE THIS MONTH. FUTURE PROSPECTS BETTER. The monthly pay-out by dairy factories took place yesterday, and the amount received by producers shows a substantial decrease compared with the figures for the same period last year. Butter factories are paying about 8d per lb. butter fat, against 2/- to 2/3 ruling last season. Prices from cheese factories are lOd to 1/-, compared with 1/6 to 2/- previously. A business man connected with the industry expressed the opinion yesterday that the advance of 1/- on cheese was somewhat risky, as the market for this product was not too settled; Butter was looking the better proposition, and it was quite on the cards that prices might show a sharp rise, though there is no stability in either market. The fact that the good season has resulted in a greatly increased production —prqjiably about twenty-five per cent, better than last year— has been a great help, but the producer has a veiy depleted income at present. This month’s cheques are generally mortgaged to pay rates, which have to be met before next week in order to escape the ten per cent, penalty. In many cases, however, the cheques will hardly cover rates.

The opinion js held that a readjustment of land values will follow the present depression of the produce market. This season, it is stated, will probably “wash up” at 1/- to 1/1 per lb. for butter-fat.