H.—3o.

GUARANTEED PRICES, 1938-39 SEASON. The guaranteed purchase prices for butter and cheese manufactured during the 1938-39 season and exported, were: Butter (basic price) 14-89 d. per pound and cheese (basic price) 8-42 d. per pound. The prices to be paid for the 1939-40 season are the same as those paid for the 1938-39 season. The full range of f.o.b. purchase prices fixed for each season to date since the inception of the guaranteed-prices system is as follows : —

The conversion formula; used in the determination of the 1939-40 season prices shown above are — Butter. Cheese. Over-run .. .. 21-75 per cent. Yield .. .. 2-51 gross. Costs of manufacture and\2-25d. per pound 2-45 net. delivery to f.o.b. butterfat. Return from whey butter 0-75 d. per pound butterfat. Costs of manufacture and\3-sd. per pound delivery to f.o.b. J butterfat.

7

1938—37 Season.* 1937—38 Season."j* 1938—39 Season 1939—40 Season. _ , Butter and Cheese manufactured Butter and exported after Butter and Cheese manufactured Butter and Cheese manufactured Grade. on and after 1st August 1930, 31st July 1937 and which is ft J t A t 193g tQ from ut A t lg39 t0 Slat Ju]y° r i937 ° n ° r ™lst July 1938 3l8t July ' ,939 ' and ex P°' ted - 31st Ju 'y> 194 °' and exported. Creamery Butter. Per Pound. Per Pound. Per Pound. Per Pound. Finest grade— d. d. d. d. 94 points and over 12-6875 13-785 15-015 15-015 93 to 93J points .. 12-5625:]: (basic price) 13-66J (basic price) 14-89J (basic price) 14-89J (basic price). {Equivalent to 106s. Od. sterling {Equivalent to 115s. sterling {Equivalent to 124s. sterling { Equivalent to 124s. sterling per hundredweight on London per hundredweight on London per hundredweight on London per hundredweight on London market. market. market. market, on basis costs at 1st August, 1939. First grade— 92 to 92J points .. 12-5 13-5975 14-8275 14-8275 90 to 91J points .. 12-3125 13-41 14-64 14-64 Second grade .. 11-8125 12-91 14-14 14-14 Whey Butter. First grade .. I 11-5625 i 12-66 | 13-89 I 13-89 Second grade .. | 11-0625 j 12-16 | 13-39 I 13-39 Cheese. Finest grade— 94 points and over 7-21875 7-90625 8-57625 8-57625 93 to 93i points .. 7-3875 7-875 8-545 8-545 First grade— 92 to 92£ points .. 7-0625t (basic price) 7-75{ (basic price) 8• 42f (basic price) 8-42{ (basic price) {Equivalent, to 63s. 3d. sterling {Equivalent to 68s. 3d. sterling {Equivalent to 73. 6d. sterling {Equivalent to 73s. 6d. sterling per hundredweight on T.ondon per hundredweight on London per hundredweight on London per hundredweight on London market. " market. market. market, on basis costs at 1st August, 1939. 91 to 91i points .. 7-00 7-6875 8-8575 8-3575 Second grade .. 6-8125 7-50 8-17 8-17 Premiums. Unsalted butter .. 2s. 4d. per hundredweight, 3s. 4d. per hundredweight 3s. 8d. per hundredweight 3s. 8d. per hundredweight. Coloured cheese .. 6d. per crate 6d. per crate 6d. per crate 6d. per crate. Deep-coloured cheese Is. 5d. per crate Is. 5d. per crate Is. 5d. por crate Is. 5d. per crate. Waxed cheese .. 4Jd. per crate 4£d. per crate 4£d. per crate per crate. Deductions. Butter, per Cheese, per Butter, per Cheese, per Butter, per Cheese, per Butter, per Cheese, per Box. Crate. Box. Crate. Box. Crate. Box. Crate, d. d. d. d. d. d. d. d. Insurance to f.o.b. .. 0-68 1-07 0-69 1-085 0-565 0-935 0-60 0-96 Dairy Board levy .. 1-12 1-63 0-56 0-815 0-56 0-815 1-12 1-63 Average Payments by Dairy Companies for Butterfat Supplies. Pay-out, per Pound Butterfat. Pay-out, per Pound Butterfat. Pay out, per Pound Butterfat. Pay-out, per Pound Butterfat. d. d. d. d. For buttermaking .. 13-558 14-81 16-199 15-88 (est.) For cheesemaking (in- 15-176 16-39 18-060 17-88 (est.) eluding whey butter) » It was estimated that the purchase prices originally fixed for cheese for the 1936-37 season (basic price, 6-8125d. per pound) would enable efficient cheesemanufacturing companies to pay, on average, to the suppliers for butterfat lid. per pound in excess of the corresponding average payment made by buttermanufacturing companies. The differential of ljd. per pound butterfat, was not realized, and the Government made a further payment to cheese-manufacturing companies of id, per pound of cheese. The purchase prices for cheese for the 1936-37 season shown above include this further payment. t The purchase prices originally fixed for butter and cheese for the 1937-38 season (butter basic price, 13-25d. per pound ; cheese basic price, 7-54d. per pound) were increased by 0*41 per pound for butter and 0-21d. per pound for cheese. The purchase prices for butter and cheese for the 1937-38 season shown above include these price increases.