STEWARDSHIP

Evening Post, Volume CX, Issue 47, 23 August 1930, Page 12

STEWARDSHIP

DAIRY BOARD'S WORK SUALITY, MARKETS, RESEARCH "Evening Post," 23rd August. The Dairy Board met in Wellington yesterday, Mr. J. Hine, acting-clrairman, presiding. The draft sixth annual report and balance-sheet were considered and passed. It was reported that funds raised by levy during the twelve months ended 31st July amounted to £38,672 17s Id, to which is added £1481 2s Id interest earned on fixed deposit and Government iecurities. Expenditure amounted to £28,386 10s 2d, and in addition £16,193 4s Id oh advertising and £4306 on scientific research. The latter item increased by £800 Management expenses amount to £13,401 14s sd, for London and New Zealand Board's, honoraria, and travelling expenses £4757 3s lid; inspection and shipping. £5060 4s 8d; "Exporter £3340 19s 7d. ~ Referring to sales propaganda expenditure,' the board states: "The board has felt it necessary to continue the expenditure of approximately £15,000 per annum on advertising, and whilst this policy " is steadily depleting the reserves, it holds the opinion that it is absolutely necessary to make New Zealand produce more widely known." That* it has ■ endeavoured and -with success to make JSew Zealand butter and cheese well known in the United Kingdom is evident by its great gale of samples. At exhibitions, shops, demonstration, by postal distribution, and in. other ways, it has spid 218,847 samples of butter, and 93,103 samples of cheese. This work has been carried out in London, Liverpool and Manchester areas; and there has been wide distribution of win; <low display matter to distributors ot liuttor rr.d chasse throughout Kngland aud Scotland. PRODUCTION AND PRICES. Reviewing the season the board notes the increased production by 10.404 per cent on a butter-fat basis, and remarks: —"Whilst no doubt the numbers of cows being milked is gradually increasing, it is safe to say that the steadily rising production of butter-fat is largely due to improved herd averages, owing to culling as a result of herd testing, together with the betterment of pasturages by reason of the-use of manures. "Have we reached the saturation point, ' as far as markets are concerned? His-" tovy tells us of .■ the ruin of the gram 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 the 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 j?er capita consumption of these products. Coming to the great problem of price, the board describes the past season as the worst market conditions experienced since the end of the war." The board finds its explanation for these, conditions not in increased production, but "lack of consumptive demand," lower retail prices failing to increase consumption. Canada proved a valuable market, but it was recognised as natural that the producers of that Dominion should become alarmed at imports of butter, and the result has been an increase in, the duty on butter entering Canada of from one cent to four cents per pound as from 12th October next. Duties on butter and cheese having b<*en raised by the United States may result in increased supplies in Canada by cessation of its trade in milk products, across the border to the United States, and that indirectly affects New Zealand's market. Butter opened with a rising market at 169s to 178s per cwt. for cheese, reachin" 184s, but fell away at-the'end o£ December and to 130s to 138s at 31st July. Cheese opened at 86s to 91s, and was steady to mid-November, falling away to 76s to 83s at the end of July. IMPORTANCE OF QUALITY. The board in its report shows much concern over the quality of New Zealand , cheese. Butter graded was 76.30 per cent, finest, 22.33 per cent, first, and 1.37 per cent, under first. Cheese graded was 23.61 per cent, finest (68.63 per cent. Dunedin and 60.38 per cent. Bluff), 74.46 per, cent, first, and 1.93 under first. At Patea grading store 5.40 per cent, was finest, 93.01 first, and 1.59 per cent, under first. On the quality of butter the board.remarks:— As the grading percentages show, a very large quantity of New Zealand butter is of a high standard, and leaves li*tle room for complaint. As an encouragement to lift the quality of that portion of our butter output which is still below the higher grade, it can now be definitely stated that finest grade butter brings a premium over first grade, and in nearly all f.o.b. sale contracts finest grade is asked Ad to cheese the board reports: "The industry is face to face with a very difficult position, but the stage has.been set for an improvement, in so far as all the direc- •' tors of cheese factories, as well as dairy experts and scientists, are now fully alive to the position, and there iel evidence of a general desire for improvement. Suppliers, directors, and managers of factories are held to blame for lower quality cheese where such haa been made. Standardised cheese is fully dealt with, the board expressing its' willingness to do everything possible to assist in improving the quality. BUSINESS OF SHIPPING. The board had endeavoured to maintain a certain quantity of New Zealand produce on the British market for the full twelve months, but quantities actually shipped per month are not evenly spread throughout the month by reason of varying rates of speed in the carrying vessels causing irregular arrivals, but the difficulty of this aspect of the shipping problem is recognised. Shipments were 3,447,228 boxes of butter and 1,198,151 crates cheese, increases being 572,542 and 46,190 respectively. To lift this quantity of produce one hundred sailings were necessary. The percentage of exports were: — Butter. Cheese. Per cent. Per cent. United Kingdom 76.01 99.70 Canada and U.S.A. ... 22.52 .19 Other countries 1.47 .11 The board dilates on the responsibility of handling so vast a quantity of produce, and adds: — "The thanks of the board are due to the shipping companies, their engineers, and other officers, and also to the freezing companies where the grading is carried out, as well a 9 all ■ who assist in local transport, for their willing ,team work in aiding the dispatch of- the produce." .The Union Company had granted a reduction on butter freights to Pacific ports. The new shipping freight contracts and marine, insurance contracts are reviewed, the board* saving £346,000 on freights since its inception. In addition, the new marine insurance contract accounts for a saving of £35,000 per annum, and a further £20,000 per annum on improved cool storage arrangements in Great Britain. ~ A reduction in freights to Western Canada, United States, and Honolulu had been made by the Union Company. Extended reference is made to valuable research work at Massey College, to herd-testing, and to new regulations for the manufacture, grading, and export of .produce.