DAIRYING YEAR.

Press, Volume LXVI, Issue 20021, 1 September 1930, Page 12

DAIRYING YEAR.

THE BOARD'S REPORT.

TEN PER CENT. INCREASE

The annual report of the New Zealand Dairy Board has been issued. For the twelve months ended July 31st, 1930, it states, the quantities graded were: Butter, 93,344 tons, an increase of 16.76 per cent.; cheese, 87,233 tons, an increase of 0.74 per cent. On a butterfat basis the increase is 10.404 per cent., as compared with 10.8 per cent, for the previous twelve months. The figures which have been compiled relating to exports from the year 1867, make an interesting study. These cover a period of 64 years, and the total quantities for that period are 2,267,426 tons of bulter and cheese, approximate value £247,717,726. But it is the last ten years, viz., 1920 to 1930, ■which attract most attention. The total export for ten years of 1,350,416 tons butter and cheese, valued at £167,408,298, is more than for the whole of the 54 years prior to that period. > The question is often asked: Have we reached the saturation point as far as markets are concerned? History tells us of the ruin of the graiu growers of Europe by reason of the opening up of the great grain-growing areas of the United States, Canada, and Australia. Will the dairy industry of New Zealand face conditions such as these? We do not think so. In tlie first place, in no country in the world are conditions more favourable for production than in New Zealand, and, further, the steadily increasing populations in all the great cities of the world, together with the growing recognition of the food value of dairy products, is increasing the per capita consumption of these products.

Markets. The dairy producers of the Dominion have faced the worst market conditions experienced since the end of the war. It is true that during that time prices have on occasions reached a level equally as low, but never have those lower prices been considerably down for such a lengthy period. While it is true that production was.heavy in all dairy producing countries, especially on the Continent of Europe, it can never be admitted that 4hese conditions were largely responsible for the decline in butter prices, and as far as cheese is concerned, there' was no increase in the total quantity going into Great Britain. Rather has the reason to be looked for in the lack of a consumptive demand, owing to a world-wide financial depression. Further, when it is remembered that in Great Britain alone there arc neatly two million unemployed, and that more or less the same conditions apply in every other country in the world, it stands to reason that the money in circulation must of necessity be considerably reduced. Prices advance M'he'.i money is cheap and plentiful, and the reverse is equally true.

The Canadian Tariff. Canada has proved a valuable market, but, as- was natural, tho producers of that Dominion became alarmed ct the growing importations of butter. Agitation for an increase in duty against New Zealand butter lias been persistent for some time, with the result that the duty, which is at present one cent per lb, will bo,advanced to four cents per lb as from October 12th next. Just what effect this is going to have on sales to Canada it is at the moment difficult to say, but it appears'likely that the quantity will bo ' considerably reduced. Arrangements have been made for a conference between representatives of the New Zealand Government and of the Canadian Government prior to October 12th, with a view to doing everything possible to prevent this increase coming into force.' The Board has viewed the position with anxiety during the last two years, and has missed no opportunity of bringing tho matter to tho attention of the Government. Duties on dairy produce going into the United States have also becrt increased, and while this docs not meantime directly affect tho New Zealand industry, it may indirectly affect it by reducing tho largo quantity of Canadian cream and milk going into the U.S.A.

. If this should eventuate, it means increased manufacture of butter and cheese in Canada, which immediately influences the market of New Zealand produce. ' It had . been anticipated that owing to the probable increase in duly on New Zealand butter going into Canada as from October 12th next, purchases would be made by Canadian merchants for July-August shipment, so as to evade the duty. This anticipation lias not been realised, and it would appear that Canadian merchants are already overstocked with New Zealand butter, and the price of butter in Canada has receded to 20 cents, equal to Is 3d wholesale at Montreal. This price, oC course, makes business with New Zealand impossible. The Cheese Position. The depression in the cheese market is'discussed'at length. The cheese position, if considered from the statistical point of view, is difficult to understand, as there has been no increase in the importations into Great Britain. The only reason which, can be put forward is the economic situation. Reference is made in the report to the criticism which has been levelled at the Dairy Division of the Department of Agriculture, regarding its attitude toward the deterioration in the quality of cheese; critics have urged that the Department could have issued a warning earlier and taken active steps to check further deterioration. The Board states that the Dairy Division, has carried out its work well and judiciously. Every move has always been made to stiffen the grade. It has never been expedient'to use compulsory measures. Touching on herd-testing, the Board states that the increased production of the,past few years bears adequate testimony to the value of this movement.

Statement of Accounts. The export levy on butter and cheese for thu twelve months yielded £38,072 17s Id; interest from investments amounted to £l4Bl 2s Id, making ;i total income for the year of £40,15.' 19s 2d. The levy of one-thirty-second of a penny per lb on butter, anjl one-sixty-fourth of a penny per lb on cheese has been continued. The ordinary ox pei.diturc of the Board, which includes payment made .for the "Exporter" of £3345 19s 7d, cost of the London office, shipping inspection, etc., amounts to £28,386 10s 2d, as compared with £27,088 7s lid for the i>rec-eding twelve months. In addition there has been expended £16,193 4s Id on advertising, and £4300 on scientific research, tho latter item having been increased by £BOO for tho current year. The Board, has felt it necessary to continue the expenditure of approximately £15,000 a year on advertising, and while this policy is steadily depleting the reserves, it holds the opinion that it is absolutely necessary to make New Zealand produce moro widely known.

DAIRY PRODUCE. Messrs A. 11. Ttirnhull and Co. are in receipt of.a cable from Messrs W. Weddel and Co., Xitd., dated London, August 201b, readme : _ "DanisJf butter 144s to 145s (last week 1445); New Zealaud unsalted 146s to 150s (146s to 150s), unsalted 124s to 128s (127s to 1325). Rather better demand. ♦'New Zealand. cheese, white 71s to 7us (last week 74s to 765), coloured. 76s to 78s (80s to 81s). Rather better demand. Canadian cheese, coloured S0« to 82s (last week BUs to S2s), white 78s to 80s (82s to 846)."-