FINANCES COMMERCE

Dominion, Volume 30, Issue 155, 29 March 1937, Page 12

FINANCES COMMERCE

CO-OPERATIVE DAIRY FARMING IN DENMARK

New Zealand’s Chief Competitor in British Butter Market

SCIENTIFIC METHODS IN QUALITY PRODUCTION

Denmark is definitely a nation of agriculturists, and is New _ Zealand s principal competitor in the British butter market. Throughout its history the utmost importance has been attached to the products of the farm, and especially of the dairy, wrote Mr. S. Overgaard, chairman o£ the National Union oi Danish Dairies, in a survey of Denmark s national industry, in a recent issue of the Trade and Engineering Supplement Ox ‘■The Times.” At one time the clnet object of this industry was to meet the needs of the home market; but half a century ago there was a development which gradually carried Denmark, small though it is, to the very front rank ot the world’s dairy-producing countries ' with regard to both quantity and quality. Although Denmark presents little scope for industries, it is the home of a large number of technical inventions and improvements in the sphere of dairy* farming. It will be sufficient here to. recall that in 18S0 the Danish technician, Ij. C. Nielsen, invented. the continuous centrifugal machine, which marked the opening of a new era for dairy-farming all over the world. In the years following these technical developments a novel form of organisation was introduced, which was found to afford unexpected facilities for the profitable utilisation of this invention. In ISS2 the world’s first co-operative dairy was founded in Denmark, and soon similar organisations sprang up all over the country, thus testifying to the capability and determination of the Danish farmers to work together for a common end. At the close of the nineteenth century there were about 1000 co-operative dairies in Denmark, and at the same time the co-operative system was also applied in various forms to the technique and management of dairy-Tarming. A common characteristic of all these organisations is their complete autonomy; they were started by the enterprise of the farmers themselves, and have been carried on as independent organisations without support from either State or mumci--3 At present there are 1740 dairies. in Denmark; 1400 of these are co-operative dairies, while the rest are privatelyowned As the private dairies largely confine their attention to delivering their products for consumption in Danish towns, about 95 per cent, of the Danish butter exported is supplied by the cooperative concerns. Mechanical Equipment. While Denmark’s first dairies were comparatively primitive, those, of to-day are highly modernised and furnished with the latest machinery and equipment; in 1900 only 5 per cent, of the dairies were equipped with refrigerating plant—to-day only 5 per cent, lack such machinery. Regenerative plant, filters and apparatus with which to sour skimmed milk are being installed in ever increasing number, and in practically all dairies there is a laboratory which undertakes daily tests of the water-content of the butter. When co-operative dairies were first established and cattle-breeding increased, ■i complete change took place in Danish agriculture. Since 1870 the number of dairy cattle has doubled, but the totai production of milk has more than quadrupled, and, as the percentage of fat in the milk has steadily increased, the rise in butter production has been even greater namely, from 25,000 tons in ISiO, to 170,000 tons in 1936. The progress of butter export gives an indication of the international importance of Danish dairy-farming; the total has risen from 10,000 tons in 18<0 to 146,000 tons in 1936. These figures adequately illustrate the results achieved by the efforts during the last. 50 years to develop dairy production in the country. Of the total output of milk amounting to 51’0000 tons in 1935, 4,070,000 tons wer’e’used for butter, 125,000 tons for cheese, and 25,000 tons for condensed milk products, while 500,000 tons were sold for immediate consumption, and 400 000 tons consumed by the producers. Thus SO per cent, was used for butter, and only about 2 per cent, for cheese. It is evident therefore that the reputation as well as the very existence of Danish dairy farming depends on the production of butter, and as more than 80 per cent, of the output is exported, it will be seen that dairy-farming is largely dependent on the foreign market. But at the same time there is justification for emphasising that Danish dairy-farmers, through specialising in their work, have succeeded in producing an article of such quality as to gain sincere commendation throughout the world.. Its high standard - is revealed by comparing prices. During 1934-36 the price for Danish exceeded that for New Zealand on the London market by an average of 22/- per cwt., or 4tkr. per 100 kg. As Denmark throughout this permd. exported on an average 145,000 tons of butter every year this excess price amounted annually to about 70,000,000kr„ or about 40kr. for every cow. As the Danish dairies concentrate on butter there is a large surplus of buttermilk and skimmed milk, of which about 95 per cent, is returned to the milk producers. generally after having been soured. The skimmed milk is an excellent feeding stuff, especially for pigs, and Danish bacon production profits accordingly. Controlling Quality. Both the State and the dairy organisations have established a comprehensive and reliable system of control over the quality of the output. Government in-

specters ensure the -strict observance of all qfiieial regulations, aud at the same time expert consultants and advisers employed by the dairy-farming organisations carry on a vast amount of propaganda and educational work. The campaign to improve quality begins in the cowsheds all over the country, where the farmers are instructed ho_w to tend and feed their rattle, and is being carried on through every stage of production and marketing. As a typical example of the way in which control is effected, the "Reduktase” test, which- is enforced in all Danish dairies, may be mentioned. When milk is received and weighed at the dairies, samples are taken of each delivery and later examined in the laboratory, where the amount of fat and the degree of purity of the milk are ascertained by scientifically trained experts; the milk producers (the farmers) are then paid for their milk proportionately to the results of these tests. The consultants of the dairy farmers’ organisations often attend local meetings of the dairy-farmers and act as judges in butter tests, and at regular intervals butter from practically all dairies is exhibited at local or national dairy shows, where the entries are judged and prizes -distributed. Only butter carrying the Danish national mark of quality, the Lurmark, may be exported. By this means foreign con*sumqrs are given an official guarantee of the uniform and high standard of Danish butter. The State sees that the Lurmark rules are strictly observed. Butter which is permitted to carry the Lurmark must, for example, be made from pasteurised cream only, and its water-content must not exceed 16 per cent. “Lurmarked” butter must not contain anilin, nor may any artificial preservative be added; and since 1926 it has been compulsory for every consignment to be marked with the date of production in order to ensure that the butter offered on the market is always fresh —a point, of course, of great importance to merchants and consumers alike.

On the cask as well as on small labels affixed to the butter itself not only the Lurmark but also the net weight of the cask, the date when the butter was made, and the number of the supplying dairy are printed. If the butter is delivered in packages, this information is printed on the wrappers and on a label which is to be found in every box containing more than skg.; in addition every small package is wrapped in paper stamped with the Lurmark. Denmark was the first country to legislate for the special purpose of ensuring the quality of butter, and the first country to set up special State-control to enforce observance. The. laws are very strict, and adulteration is invariably punished by imprisonment, consequently adulteration of Danish butter has not taken place within the memory of man. (jp-operation in Export Trade. For the most part co-operative principles are followed in the export of butter in the same way as in the dairy industry. Half the export trade is undertaken by butter export unions, i.e., cooperative unions of dairies formed for the sole purpose of disposing of the produce in the best possible manner. In 1936 Denmark exported 146,000 tons of butter as compared with 138,000, 150.000. and 151,000 tons respectively in 1935, 1934 and 1933. In 1932, 158,000 tons were exported, and in 1931 172,000. ■While the imports of butter into the United Kingdom during the last five years have been rising, those from Denmark have been decreasing.

Denmark's second largest customer is Germany, which in 1936 bought 34,000 tons, or 24 per cent, of Denmark’s total export of butter, as compared with 18 per cent, in 1935 and 14 per cent, during the years 1931-1935. Denmark exports biitter to a number of other countries, but only in small quantities. In 1935 it was sent to 48 different countries, thus showing that the product is able to satisfy fastidious customers in every country. Danish butter has attained a fine and firm position in Great Britain, no doubt largely by reason of its special qualities, which' are unaffected by the changing seasons and retain the same high standard throughout the year. The trade has flourished ever since Danish dairy-farm-ing was modernised. The regular shipping service established between Great Britain and Denmark in 1566 stimulated commercial intercourse between the two countries, and in course of time industrial England and agricultural Denmark have naturally developed an exchange of such goods as have become tlte specialities of each country. As this trade is mutually advantageous, it is healthy and highly valuable, and the. Danish dairyfarmers will go far in their efforts to preserve and develop it. In the future (as in the past) They will comply to the best of their ability with every reasonable desire and demand of their British customers.

Imports of Butter into the U.K. 1932 s Mill. l<g425 Denmark s share Mill. kg. 131 in per cent. 31 1933 . 449 128 29 1934 . 492 126 26 1935 . 488 109 23 1936 . 490* * Approximately. 109 22