THE DAIRYING INDUSTRY.

Digger (Invercargill RSA), Issue 43, 14 January 1921, Page 4

THE DAIRYING INDUSTRY.

OUTLOOK DISCUSSED. Thj "Taranaki Herald" has the following which may be of interest to dairy farmers : — What return the dairy farmers will reeeive for their labour in the season now under way is a question that is of interest to people other than the farmers, the others including those who say they wish they had the dairyman's job of drawing big cheques. The return to butter suppliers is assured, subject to slight variations in the cost of manufacture and incidental expenses, by reason of the extension of the Imperial Government control until March 31 next. The position with regard to cheese now appears to be tolerably clear. and it can be reasonably forecasted that at the end of the season suppliers of both butter and cheese factories will reeeive not less than 2s 7d per lb. of butter-fat. In a good proportion of cases the return will be greater, in some quite appreciably so. This means at least 7d per lo of butterfat more than was received last season under the commandeer. While the outlook remains satisfactory, the some what exaggerated hopes that led to much of the high-priced buying of land in Taranaki have by no means been realised, and the pi'esent occupiers of many farms are working under a tremendous burden of interest. As regards monthly pay-outs, butter suppliers are on the sam.e basis as previously. With cheese suppliers the position varies according to the arrangements made for disposing of the output. Many of the smaller cheese factories were fortunate in .selling early in the season at from ls 2^d to ls 2|d per lb of cheese, and should be able to pay out for the season from 2s lOd to 3s per lb of butter-fat. These factories, through having their monthly advances guaranteed by letter of credit, are able to advance at least 2s per lb. Un the other hand, the factories that are consigning their cheese are only able to advance about from ls 6d to ls 9d per lb but-ter-fat on account of the market having sagged. With the probability of cheese not bringing more than ls to ls O^ib, the banks are making corresponaingly lpw advaimes on shipments. In Taranaki the larger cheese factories which were consigning have in nearly every case turned over to buttermaking, or are arranging their plant to enable tbis to be done. The controlled price of 2s 6d per lb of butter will enable factories to pay out from 2s. 6d to 2s 8d per lb butter-fat, according to the geo.graphical position, and whethei they work on the home separation or the creamery system. The home separating system, by eliminating skimming loss at th,e factory, enables a pay-out of from ld to 7^d higher than in the case of a creamery to be made.