THANKS ARE DUE.

Taranaki Daily News, 30 June 1922, Page 7

THANKS ARE DUE.

Although a good many farmers are no doubt bewailing the fact that several dairy factories have closed down their trading depots, they should really be giving thanks that these particular factories have been far-sighted enough to realise the folly of their late policy. Selling goods at cost whs a grave mistake from the start —a system which at best was found to lead to serious losses in the trading depot, for a business which sells at cost, adding nothing for cartage, storage, sales and clerical staff wages, and other overhead expenses, can NOT make a profit, and MUST lose money! True, the farmer would pay indirectly for these losses, but the reduction in the price he received for his butter-fat would soon outweigh the savings he made by purchasing necessaries at cost price. However, now that a lead has been established, other factories will have to give more serious consideration to this aspect of the situation, and, as the Direc-1 tors are, in the main, men of keen judg- 1 nient.' it is practically certain that Dairy Factory Trading, in its present form, will very shortly be a thing of the past. (Published by Arrangement.)