DAIRY INDUSTRY

Evening Post, Volume LXXXIII, Issue 151, 26 June 1912, Page 4

DAIRY INDUSTRY

ITS PRESENT POSITION INTERESTING PAPER BY MR.' ELLISON. NO BUTTER RING. •. " ' ' faY TKLIGBAPH.] ' (From Our' Special Reporters.) PALMERSTON N., .This Day. Both His Excellency the Governor and the chairman of the National Dairy Association referred in general terms yesterday at Palmerston North during the National Dairy Show to the state of the dairy industry, but the fullest treatment of the situation came in an excellent paper by Mi'< R. Ellison, Home agent for the association, which was read to the meeting of members by Mr. J. G. Harkness, the secretary. The season for 1910-1911, began Mr. Ellison's report, will stand for some time unique as regards both butter and cheese. Not only had the prices for both articles established a record, but from the standpoint of production our dairy farmers have also the satisfaction of knowing that this also has been a record year. The total quantity of butter exported since the opening of the season had been 1550 tons, exclusive of shipments to Vancouver and other ports. . Cheese showed an increase of 24 per cent, over the corresponding period of 1910. The market had been such as to justify this increase" in production, and cheese still retained its position. As regarded quality, the reputation of New Zealand butter had been well maintained. Reference was made by , Mr. Ellison to the shipment of whey butter, the bulk of which -had not bppn satisfactory. It was doubtful whethei it should rank as "pure creamery butter." MORE MARGARINE USED. The continued high range of butter values had naturally had a tendency to increase the consumption of margarine, and the sale" undoubtedly had been very heavy during recent months. Imports during the first quarter of the year had amounted to 16,700 tons, being an increase of 6500 tons on the same period of 1911, and the yearly imports were 50,000 tons, valued at £2.500,000, or £2 10s per cwt. It was not to be wondered at its displacing butter on a high market. It was estimated by competent judges that 2500 tons of margarine were used every week in the Old Country, so that the British consumers spent something like £6,000,000 yearly on margarine. Mr. Ellison mentioned that the Maypole Dairy Company,, which sold margarine largely throughout their 700 shops, made last year a profit of £492,000, and paid 200 per cent, on their deferred ordinary shares, "CHEESE SHORTAGE. A stupendous shortage .on cheese was noted by Mr. Ellison, equivalent to 700,000 crates of New Zealand cheeso. As regards quality, New Zealand cheese was not equal to the bet>t English cheddar. The great defect of New Zealand cheese was its openness and liability

to crack aiter being cut and exposed to the atmosphere. Our cheese, which showed a greater average percentage of _ moisture than Canadian cheese, our chief competitor, required to be mad> more meaty to satisfy the English cnsumers. BUTTER IMPORTS. The total imports of butter into the United Kingdom for the year ended 15th December. 1911. were 4,302,956 cwts, against 4,325,539 cwts in 1910. This showed a decrease of only 22,573 cwts, and on these figures some people based arguments against tho high prices ruling for butter during the season. They asserted that the whole butter trade- had suddenly fallen into 'the hands of a ring. t Statements of this kind were calculated to do a lot of harm. There was absolutely nothing to warrant it he assertion that the butter trade of Great Britain had been controlled by a trust. The shortage in butter from all sources during the first three months of the present year amounted to over 50,000 tons, which l accounted for the high price. Unfortunately for many factories, -they sold I their season otitput at prices ranging from 105s to 1123— high prices compared with those of previous years — but 'the prices well advanced, and went up to 128s and ultimately to 138s. This loss of £20 a ton required a lot of facing by j the factories. Short sellers had to pay! the penalty of their speculation, and no j doubt had endeavoured through the press ' to persuade the people of the Old Country that a butter ring was in operation and should be boycotted. The position, however, was far too strong to allow of anything said having an influence on the market, and prices had kept at a high j level simply because of the shortage of butter. Had the tactics been adopted, in a normal year they would have had a very distinct effect, and might have thrown prices down. ADVERTISING NEGLECTED. In the department of advertising New Zealand was quite neglected. Nothing like the same effort was being made as by the Australian Commonwealth and the other Dominions. Most of tho States had permanent exhibits and information bureaus in the main thoroughfares of the city, and now they were erecting a block of buildings on one of the finest and most expensive sites in the Strand. In the meantime New Zealand was content with an office on the second floor of the highly respectable but little frequented Victoriastreet. "I feel," said Mr. Ellison, "that as a means of advertising our goods the Government should be asked to assist towards opening at least two well-equipped shops in suitable parts of London, from which should be sold exclusively Neir JSealand produce, and thus bring before the people the at present little known excellence of our goods. It would alsu be to our lasting advantage if a permanent lecturer was maintained in England for the purpose of advocating our country." FORECAST. After a- length/ reference ito the pros perity of the Old Country in spite of strike and labour troubles Mr. Ellison concluded with a forecast of the coming season. Tho months of April and May had been exceptionally dry at Home, and with a few weeks more of this weather high prices might be expected again next season. On the other hand, should the weather break the whole aspect would be altered. The situation was based entirely on weather conditions. The factories which had consigned their produce had again demonstrated the wisdom of following this policy, by svhich alone, year in and year out, they could hope to reap the benefit of years like the present. v The loes by selling had been ■colossal. With the object of improving our cheese Mr. Ellison finally recommended that Mr. Cuddy, Dairy Commissioner, should be sent Home. (Applause.) A hearty vote of thanks ito Mr. Ellison for his paper was carried with acclamation.