BUTTER AND CHEESE

Wairarapa Times-Age, 5 October 1939, Page 8

BUTTER AND CHEESE

PRICES TO BE PAID THIS SEASON SAME AS THOSE OF LAST YEAR MINISTER’S ANNOUNCEMENT. AVAILABILITY OF SHIPPING & COSTS. (By Telegraph—Press Association.) WELLINGTON, This Day. The Minister of Marketing (Mr Nash) announced today that»t.he prices at which the Government would purchase butter and cheese manufactured during the 11)39-1940 season and exported would he the same as those paid for the 1938-1939 season. These were: — Butter (basic price), 14.89 d per lb. Cheese (basic price), 8.42 d per lb. The local prices of butter and cheese would be maintained at a level that would enable dairy companies to obtain a return commensurate with the return from export prices. It was estimated that on the basis of the present cost of manufacture, and under normal manufacturing conditions, payouts to suppliers would be as follows:— Butter manufacturing companies, 15.88 d per lb of butterfat.

Cheese manufacturing companies, 17.88 d per lb of butterfat. The Minister added that these prices in 1938-1939 enabled dairy companies to make payouts to producers, on the average, of lfi.ld per lb for butterfat for butter and 18d per lb for butterfat for cheese.

Fears had been expressed regarding the effect of the present emergency on the availability of shipping and on manufacturing .costs, said the Minister. It was impossible to forsee these eventualities, but the Government realised it must protect the producer should an undue hold-up of shipping occur or undue costs be incurred. The prices to be paid would be f.o.b. ocean steamer, and were based on normal conditions ’of manufacture, storage and transport. The Government would reconsider the basis of payment if an abnormal holdup in shipping occurred, bringing with it any difficulty in arranging finance. Mr Nash concluded by saying that the Government had received many assurances of support from all classes of the community an'd felt certain that all classes of the community and felt certain that dll dairy farmers would co-operate to the fullest extent by producing the maximum quantities of butter and cheese which seasonal conditions would allow.