DAIRY PRODUCE SEASON

Taranaki Daily News, 22 November 1926, Page 7

DAIRY PRODUCE SEASON

INCREASED PRODUCTION FINANCIAL RETURNS DECREASE. POSITION IN NORTH TARANAKI. With a view to ascertaining, if possible. with some degree of accuracy, the actual effect of the low advances at present being made for butter-fat under the control system as compared with last year, under the free marketing system, a representative of the News en-« deavoured to secure information from various dairy factories in the district, showing the total pay-out to date for this year as compared with the corresponding period of last year, and also the output for this season as compared with that for the corresponding period of last year. Fortunately this year the early part of the season has been favourable for production and this has to some extent helped to compensate dairy farmers for the decreased pay-outs. It was found impossible to secure all the returns butsufficient returns from eighteen were received to enable a comparison to be made. The eighteen factories from which the returns have been gleaned, comprise Bell Block, Okato, Okau, Uruti, White Cliffs, Waitoitoi. Brook lands, Oxford, Frankley Road, Wares. Newall, Rahotu, Omata, Waitara Road. Tikorangi, Royal Oak, Lotakare and Tarurutangi. These show that for the period up to October the butter-fat manufactured into butter and cheese totalled 1,370,6601b5, as compared with 1,4.51,7731bs for the same period of last year, an increase this year of 118,8871bs of butter-fat or, taking it on a percentage basis, 8.18 pel - cent., but the advances made by factories to suppliers this year totalled" only £87,868, as compared with £111,401 for the same period of last year, a decrease of £23.533, or ■21.1 per cent. Had the pay-out this year been on the same basis as last year suppliers from these factories should have received about an additional £9OOO over last year, making a total of £120,400, as against the amount they have received. £87,868, thus being a decrease this year of £32,533, or 28 per cent. Taking the output of all the factories that grade at the Moturoa Freezing Works, which for the period under review totalled 5,000,0001bs of butter-fat, the difference over the whole of North Taranaki would amount in round figures to about £lOO,000 had the price been the same as last year. Even allowing for the increased output this year dairy farmers are receiving just about one-fifth less for their produce than they did last year. It would probably not be fair to place the whole of this decrease against control, as conditions existing at Home have also to be considered, and it is probable that even had free marketing been in vogue there would not have been such high offers as was the case last year, when some factories sold out their cheese at !)}d and 9jd in the early part of the- season. This enabled them to advance in some cases as much as Is fid and Is 7d, and in the majority of cases Is 4d, as against Is 2d which has been advanced by factories under the control system. Indeed, to do that they have had to strain their financial resources to the limit, whereas last year the major, ity of factories kept a little in hand. With free marketing this year it is considered certain that offers would have been received by factories for their produce at prices that would have enabled them to pay out more than they have been able to do, and in the early part of the season it is well known by all connected with the industry that every additional Id per,lb butter-fat is doubly welcome after the winter spell, during which expenses have been accumulating and no money has been coming in. It must also be borne in mind that the present pay-out by the Control Board is in the nature of an advance, and it is expected that there will be further pay-outs later, which will increase the amount received over the early part of the season, but against this* it must be remembered also that last year the majority of the factories mentioned also made further payments.