DAIRY BOARD YEAR

Evening Post, Volume CXIV, Issue 50, 27 August 1932, Page 14

DAIRY BOARD YEAR

PRODUCE AND PRICES

QUALITY IMPROVEMENT

MARKETING PROBLEMS

The eighth annual report of the Dairy Board for the period ended 31st Julyshows that the export levy on butter and cheese for the twelve months yielded £ 40,680 Is 8d; interest from investments amounted to £377 18s 6d; making a total income of £41,058 0s 2d. The expenses of the board under the heading of "Management" were, for the head office in New Zealand £5873 5s lOd, and London office £6523 19s Id. Other expenses, including shipping work, shipping supervision, totalled £13,547 9s lOd. In addition £3803 was spent on research and £5855 3s as a subsidy to herd testing, which, together with £17,535 8s 7d spent on advertising £ew Zealand butter and cheese in Great Britain, brought the total expenditure to £03,158 Gs 4d. Reviewing the dairy industry as a whole it is noted that production last season was not only affected by adverse weather conditions, but also by the inability of producers to purchase the increased quantity of fertilisers necessary. The Government granted a subsidy of 11s per l mnnS t su PerP"osphate purchased up to 30th June, 1932, and which has been renewed for another twelve months. This assistance has given considerable relief. Given a good season and reasonable application of fertilisers there should have been greater production, as it is estimated that the number of cows in milk has increased by 200,000 over those of 1030-31, which numbered 1,490,532. _ Actual production shows an increase of i.i per cent, in butter and a decrease of 1.16 per cent, in cheese, when compared with last year's production. In terms of butter-fat, however, there was an increase for 1931-32 of 5.285 per cent, over 1930-31. THE MARKETS. In reviewing conditions of the markets for butter and cheese it is noted that "the financial crisis is still bearing heavily upon the primary producer. . . . Cost of production appears to be almost stationary, and unless relief is forthcoming in the not distant future the outlook is dark indeed." The Continental economic position and its bearing on Denmark and indirectly on New Zealand's position in the British market, are reviewed, and the quotas and duties applied to butter imports by France, Holland, Belgium, Switzerland, nnd Italy are referred to. The Irish Free State situation, it is suggested, may account for a rise of 4s per cwt in the price of New Zealand butter in England. Although under a new tariff agreement the rate of duty on butter entering Canada has been reduced to five cents, business is impossible in that market, with the Montreal wholesale price (at time of writing) ruling at 16% cents per pound. The board has looked into the question of Eastern markets, and is carefully watching the position, but it recognises the advantages enjoyed by Australia's contiguity to Far Eastern countries and the advantage it enjoys o£ direct communications. At the same time New Zealand shipped to the Far East from Ist July, 1931, to 30th June, 1032, to India, Burma, and Ceylon 2899 boxes of butter; to Malaya, 1225 boxes; to Netherlands, Indies, 830 boxes; to Philippine Islands, 575; to Shanghai, Hong Kong, and Japan, 3263 boxes butter and 606 crates of cheese. On the whole, however, trade has been declining, largely due to the economic depression. Increased quantities of produce have been shipped direct to the West Coast ports of the United Kingdom, viz., 80 per cent, more butter and 33 per cent, more cheese than for 1930-31. - Stocks of New Zealand butter and cheese in the United Kingdom at 31st July last were lower than those held at the corresponding date in 1031, whereas consumption of butter has substantially increased. QUALITY IMPROVEMENT. Improvements in quality of butter and cheese exported are noted. "Considerable work is being done to. bring about further improvement by managers, Government graders, instructors, and scientific workers. That there are still many problems goes without saying, but consistent and sustained effort on the part of the Dominion's experts must bring results. Factory managers everywhere are showing a keenness which is most commendable. The inauguration of milk grading for cheese factories marks a distinct advance." As showing how quality has improved the following percentages of qualities graded will show the progress made:— 1931-32. Butter. Cheese. P.c. P.c. Finest 78.54 22.95 First 20.42 75.14 Under first .... 1.04 1.91 100 100 1930-31. Finest 7G.01 17.28 First 22.84 80.04 Under first .... 1.15 2.68 100 100 A strong claim is made for support of the board's policy of regulation of shipments. It is acknowledged that "overseas cargoes have throughout the year been handled in a satisfactory manner and the standard of cleanliness in railway wagons and coastal vessels has been well maintained." Relations of the board with port authorities, cold storage proprietors, and shipping companies are described as continuing to be harmonious, with anxiety shown to adopt any reasonable suggestion for the improvement of existing conditions. The board's extensive publicity efforts in popularising New Zealand dairy produce in the United Kingdom are reported to have had excellent results, especially in the midland and northern areas. Financial and other assistance has been given by the board to the research dairy work and to herd-testing—a sum of £5855 being expended on the latter. It is estimated that £7000 per annum will be saved on marine insurance under the new contract for three years from Ist September, 1932, when comparison is made with insurance expenditure for 1931.