H.—3o.

The conversion formulæ used in the determination of the 1941-42 season prices shown above are—

Resulting Average Payments by Dairy Companies for Butterfat-supplies.

PREMIUMS FOR QUALITY, AND QUANTITIES OF BUTTER AND CHEESE PAID FOR (OR TO BE PAID FOR) AT DIFFERENTIAL PRICES. Under the Dairy-produce Export Prices Order 1939 provision is made for additions to or deductions from the basic purchase prices for butter and cheese according to quality as disclosed by the grading-points awarded to the dairy-produce. This system of price differentials is intended to provide a stimulus to the production of dairy-produce of higher quality. The following tables show for the 1940-41 season the quantities of butter and cheese purchased and to be purchased and paid for at the respective differential prices. For comparison purposes the totals for the previous four seasons are also shown:—

Creamery Butter (in Tons): Quantities purchased or to be purchased and paid for at Differential Prices.

8

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. .. J butterfat. Return from whey butter O75d. per pound butterfat. Costs of manufacture and~l 3-5d. per pound delivery to f.o.b. J butterfat. I

1936-37 1937-38 1938-39 1939-40 1940-41 1941-42 Season: Payout Season: Payout Season: Payout Season: Payout Season: Payout Season : Payout per Pound per Pound per Pound per Pound per Pound per Pound Butterfat. Butterfat. Butterfat. Butterfat. Buttorfat. Butterfat. d. d. d. d. d. d. For buttermaking 13-558 14-812 16-087 16-179 16-106 15-88 (est.) For cheesemaking 15-176 16-389 18-060 18-091 18-043 17-88 (est.) (including whey butter)

Finest Grade. First Grade. Grading Porte. Total. „„ to o-,. 94 Points 8| to 93 J 92 to 92J 90 to 91J Grade - a " d °™ (Bio Woe.) Point8 - Points - Tons. Tons. Tons. Tons. Tons. Tons. Auckland .. .. .. 103,868 27,497 53,839 12,205 9,721 606 Bluff 75 .. .. 46 29 Dunedin .. .. .. 162 14 83 49 3 13 Gisbome .. .. .. 2,249 1,328 809 71 38 3 Lyttelton .. .. .. 1,067 539 398 79 20 31 Napier 1,523 869 625 .. 29 New Plymouth .. .. 7,495 3,426 3,013 727 329 Patea ' .. .. 289 157 81 33 18 Timaru .. .. 271 69 170 16 2 14 Wanganui 2,116 1,004 913 158 41 Wellington .. .. .. 14,222 8,666 3,539 1,490 510 17 Grand totals— 1940-41 .. .. .. 133,337 43,569 63,470 14,828 10,757 713 1939-40 .. .. .. 128,274 51,624 51,004 15,437 9,570 639 1938-39 .. .. .. 116,431 48,803 49,759 9,928 7,429 512 1937-38 .. .. .. 137,555 55,611 57,275 15,399 8,753 517 1936-37 . .. 149,810 53,844 66,717 15,550 13,192 507 Percentages of Qualities — 1940-41 .. .. .. 100 32-67 47-60 11-12 8'07 0-54 1939-40 .. .. .. 100 40-25 39-76 12-03 7-46 0-50 1938-39 .. .. .. 100 41-91 42-74 8-53 6-38 0-44 1937-38 .. .. .. 100 40-43 41-64 11-19 6-36 0-38 1936-37 .. .. .. 100 35-94 44-53 10-38 8-81 0-34 Butter figures calculated at 40 boxes to a ton.