BUTTER MARKET

Waikato Times, Volume 121, Issue 20260, 31 July 1937, Page 5

BUTTER MARKET

FEARS OF A SLUMP. DAIRY ACCOUNT SYSTEM. CRITICISM AT BRUNT WOOD. (Special Reporter.) CAMBRIDGE, Friday. Although agreeing that the overseas butter market would return sufficient this year to balance the guaranteed price, the chairman of the Bruntwood Co-operative Dairy Company, Ltd., Mr W. N. Perry, stated, when addressing the annual meeting of suppliers today, that a slump might occur in the English market next year. “ Butter has brought good prices on the overseas market during the past season, but in my opinion this has been due mainly to the fact that Australia has suffered a bad producing season. Up to the end of April the Commonwealth had exported 42,000 tons less butter than usual. When Australia comes back on to the market I think that we will be fortunate If the market keeps near what it is at present,” said Mr Perry. “ For that reason the Government should do its utmost to keep the cheese people going, for the safety of the industry. Cheese factories must be encouraged to produce all the year round. “ I hope that the Government will fix the guaranteed price at an equitable figure to enable farmers and their families to live in a reasonable state of security and comfort,” said Mr Perry. Protest to Government. In answer to a question from Mr .T. R. Voyle, the chairman said he understood that the butter and cheese accounts in the guaranteed price system would be worked as one, and the profits of one product would be used to offset any deficit which might occur In the other. Mr Perry did not foresee any deficit in the butter account but he was certain that a big profit would be made by the Government on the cheese account. He did not think it likely that this surplus would be returned to the producers. 11 It seems unfair that the two divisions of dairymen should have to bear the other’s burden,” said Mr Voyle, suggesting that a reversion of farmers to supplying butter factories was a dangerous likelihood. After discussing this aspect and also the higher costs of chee-se manufacturing, the meeting carried the following resolution, moved by Mr Voyle and seconded by Mr W. C. Wallace: “That the unfair position that cheese suppliers find themselves in at present as compared with the butter suppliers be brought to the notice of the Government.” Company’s Pay-out. When Mr T. Hargreaves asked the chairman If the directors had ever considered separating during the winter months Mr Perry said that the board did not desire to displace its staff for that period. He thought It a dangerous practice to give up cheese-making for a few months. In speaking of the bobby calf trade, Mr Perry said in his opinion the position was at present satisfactory. He could not see why the farmers were worrying. If the pooling system were introduced there would he a danger of eliminating competition among buyers. Suppliers of the company have received an average advance payment over all grades of 13.0162(1, while the surplus will allow a further distribution of 1.699 d, bringing the payout for the season up to 14.715 d per lb of butterfat. At the meeting to-day the suppliers received a bonus distribution of 1.5 d per lb butterfat over the whole season. The retiring directors, Messrs W. N. Perry and .T. C. Wallace, were reelected unopposed. The directorate for year remains unchanged, the personnel being: Messrs W. N. Perry, S. Holmes, E. J. White. J. C. Wallace, H. S. Duncan, S. R. Hinton, and G. A. Watt. The directors’ honorarium was Increased from £llO to £152, of which the chairman will receive £BO.