CORRESPONDENCE.

Wairarapa Daily Times, Volume XVI, Issue 4992, 3 April 1895, Page 3

CORRESPONDENCE.

"THE BUTTER TRADE."

[to tug editor.] Sir,—l have read your various articles upon the dairy industry with pleasure and profit, and the best thanks of all those engaged in the industry are due to you for the fair and impartial manner in which you have treated this subject, I have also read Mr McCardle's letter upon the cost of working the Ballance factory, and have been anxiously waiting to see it replied to by someone more capablo than myself, but in order that Mr McCardle should not form an erroneous estimate, I submit the following items which should be included in the cost of manufacture, and (not knowing the whole of tho circumstances relating to his factory) I must presume that such a factory as this one apparently is, cost say £1,500 to erect and fit up, and also that 16,5001bs of butter were manufactured at this place during February last, and further that this factory works for eight months in the year, the result would therefore bo somethingliko this:— WOBKING EXPENSES FOB FEBBWBY. £ S D Amount paid foractuallahour 3110 8 Proportionate shareof interest on£lsooat7percent... 13 2 6 Proportionate share of insurance 2 6 10 Boxes and Parchmentuscd... 17 10 0 Firewood, oil, repairs, etc ... GOO Office expenses, stationery.ctc 10 0 0 Written off buildinijs, etc., for depreciation say ... 25 0 0 £lO5 10 0 Tbis shows a cost of slightly over lfd per lb of butler for manufacture which may not include some incidental expenses that are sure to arise. It must be borne in mind, too, that this estimate is for one of tho best months in the season, and that the proportionate expense of what are termed fixed charges is smallest, for these charges run on throughout the whole of the season, irrespective of the amount of butter turned out. Mr McCardle goes on to point out the profits to be obtained from selling butler at lOd per lb (I presume in England) but it would, I think, be wise for him to wait until ho receive) his account sales from London, showing the uett returns before stating what price can safely be paid for milk in order to sell | butter profitably at lOd per lb in the English markets. Thanking you in anticipation, I am, etc., Interested.