THE BUTTER TRADE.

Wairarapa Daily Times, Volume XVI, Issue 4985, 26 March 1895, Page 3

THE BUTTER TRADE.

[to the editor.] Sin,—Under the heading "ATarpaulin Muster," you give an article on the butter industry. Will you kindly allow me to add a few facts. In the first place you say re cost of producing a lb of butter, you put down the working expenses at Hd per lb. The Ballance factory put through during last mouth something over 16,5001b5; working expenses £l2s 2d per day; in all £3l 10s M for 28 days, being the month of February. Tho pay for February is less than other months, but so also is the butter made. At your price, i.e., Ud per lb, our factory working expenses would have amounted to £lO3 3s, whereas it really only amounted to £3l 0s Bd. The above does not include firewood, but that ii covered by the price paid for buttermilk. You will see that in our case wo save £72 2s 2d on the first item of expense. There is still another profit that assists in making the factory pay. It is generally admitted that the salt and water left in the butter amounts to about 17 percent, In the case of our factory, milk is paid for on the test system, aud accordingly suppliers received payment on somethingovei'M.OOOlbsor butter, oratthe rate of 3d per gallon of lOllbs; the butter actually made from the above was over 16,5001b5, leaving a profit of 2,5001bs of butter to go towards working and other expenses. Taking 25001bs of butter for the month, at ilOd per lb., we have the sum of £lO7 15s Id profit. As to the other items of expense, pointed out by you, I cannot give an opinion just now, as my experience does not yet extend beyond the factory, but admitting yours as correct, the profits gained to suppliers under the above, will more than cover all the other items of expense you refer to. lam of opinion, that so long as 10(1 per lb is obtained for butter, the factories should return to the milk suppliers, at least 3|d per gallon for milk. The settlor, if lie makes the best use of his skim milk in feeding pigs and roaring calves, will find it returns him f d per gallon, At those figures, the supplier should make 4d per gallon for his milk.

Bad as tbe outlook is and Ims been during the present season, I see nothing that the settler lias to fear, provided that he does not expect more than 3d por gallon for his milk. Whatever changes may bo in store of an adverse nature to the butter industry, the paring off should not bo first applied to the settler. The items of expense to which you refer—railage, freight and brokerage, we may add interest charge on plant, etc., should first suffer, for they can best afford it. factories can only be a success on the co-operative principle, Settlers must exercise a firm control over their own interests, and thus, with good management, proper land and good cows, dairying will still provide a good return to the settlers.—l am, etc., W. W. McOahdle.

P.S.-A portion of the 25001bs of butter mado over and aboye what was paid for in the month of February, was really deducted from suppliers in this way:—The test of butter fat required to make lib of butter is 3'G to the gallon of lOMbs, 21 gallons being the standard for lib of butter. Our factory deducts '3 from the test. Say the test is 3'B it would count 3'3. In my own case I think the quantity deducted in this way amounts to about the value of nearly £2 for tlio month, on the test system, still my payment for the month amounts to 5s over the 3d paid per gallon on tho month's supply. W.W. McC. Mangahao, March 21st.