THE DAIRY INDUSTRY

Hawera Star, Volume XLVIII, 30 June 1924, Page 10

THE DAIRY INDUSTRY

POSITION IN NEW ZEALAND. ADDRESS BY MR. SINGLETON. Mr. W. M. Singleton, director of the Dairy Division, addressed the annual conference of the National Dairy Association at Auckland on the subject “The Present Position of the Dairy Industry in N«w Zealand.” In the first place he said he would like to congratulate the association on its annual report. He had been specially interested in the amount of information it contained, not only in respect to its own activities, hut also in regard to conditions pertaining to the industry in all parts of the world.

Continuing, Mr. Singleton said that although the Danes were increasing their production, he still lielieved that New Zealand, having regard to all the circumstances, was the greatest exporter of butter in the world. They had to recognise that Denmark, their greatest competitor in the batter held, was not only an exporter of butter, but that she imported a good percentage of margarine for consumption by her own population, whereas New Zealand f>elieved it was good business to feed her people on butter. They sometimes envied the Danes their margin of price over New Zealand butter, but he for one considered New Zealand had many compensating factors which the Danes did not possess. It must he recognised that New Zealand dairy farmers provided their cows with grass grown on their own farms, and New Zealand butter was manufactured from milk produced and sold accordingly ; but the Danes were not only interested in successful sales of the manufactured article; their success finally depended on the successful buying of necessities for the feeding of their cattle. The same applied in connection with their bacon industry. They had to depend for its success oi\ that factor, too. In New Zealand we had pride of place in so far as the number of dairy cows per head of the population was concerned. No other country could compare as favourably in this respect. 4Ve had twice as many 'cows per 100 of the population as Denmark had, and scientists had been telling them that the physical and mental ability of a nation was closely associated with the consumption of dairy produce, so that New Zealand should hold a very Tiigli position—both physically and mentally. (Laughter.) Another phase they could congratulate themselves on was that while agriculture represented the greatest items so far as our exports were concerned —90 per cent, or more—the dairy industry represented the biggest factor in connection with our agrieuL' tural exports. Statistics to March 31 last disclosed the fact that our exports of butter and cheese and other milk products were valued at 18) millions, while wool was valued at 154 and meat at 12 millions The dairy industry was a great asset to the country in another respect. In 1919 it employed 50,000 people, while in 1923 the number had increased to 78,000. Meat and other branches of agriculture employed less than 18,000 people. Another point and one which must be patent to everyone, was that money received from dairying was distributed over a much larger percentage of the population than money received from any other source. Continuing, the speaker referred with satisfaction to the increased production per capita of those engaged in dairying. In 1915-16 the average output of butterfat figured on the basis of the number of people engaged in the industry was 24421 b, whereas for 1922-23 it was 2761 lb per person, an increase of 13 per cent. The Prime Minister had told them recently that New. Zealand exports for the last financial year were valued at 51 millions, and our imports at 44 millions, thus showing a substantial balance in the Dominion’s favour. Contrast that with Denmark. He had already told them that Denmark had to import a large amount of food,products, and’ she showed a debit of 20 millions on her trade in 1923, and also a fairly high debit for the two previous years also. New Zealanders, therefore, had a lot to he thankful for. In connection with the. world’s markets for butter and cheese they Recognised that practically all the Dominion’s output was sent to the United Kingdom. Statistics had been given as to the increased production of dairy produce in New Zealand during the past three years, but he would also point out that in the last ten years the increase in imports of both butter and cheese into tha United Kingdom only amounted to 24 per cent., despite a very small increase in population. This Would give them some idea as to what they were up against so far as competition was concerned; but there' was one saving feature about it, the United Kingdom imported and exported margarine, and in these ten years the imports of margarine had decreased by 14,357 tons. That in itself would give a little more room for butter and at the same time it did not look as though the position was too rosy from the point of view of the margarine manufacturer. They had to recognise that while New Zealand had her difficulties, other countries, too, had their own peculiar difficulties to contend with, ihe position in Australia was different to that in New Zealand. Australia did not start grading as early as New Zealand. and the result was’that they had up till now been manufacturing a larger percentage of butter that wa s of poor quality. Local people did not appreciate the poor . quality produce and had been demanding the better makes for local consumption, forcing Australia to export a larger percentage of their poor quality makes. The Argentine was up against quality more than New Zealand. In Rhe Argentine they had their diffi culties in regard tp soil, transit, and also on the farm, the quality of their butter forwarded to the United Kingdom being reflected in the price it realised. They had a great deal of leeway to make up. In regard to Siberia, they, too, had various difficulties. Their butter had to be transported from the factory to the centre of control and then railed to Riga for transhipment to London. The cost against Siberian butter was approximately 56s per fewt. to land it on the Home market, so that when they took into consideration the price realised for the product, the return to the Siberian producer was not likely to encourage him to become a very serious competitor in the English market. On the other hand it might act to some extent as a deterrent. He recognised that some of the States around the Baltic were more favourably situated and were increasing their production.

New Zealand, continued Mr. Singleton, had done a great deal in the way of improving the general uosition of the industry. Practically all her butter wax made from pasteurised cream and two-thirds of the cheese manufactured here was made from milk which had been pasteurised. Thirty-eight per cent, of New Zealand’s butter and cheese was made in factories which have considered it advisable to appoint dairy farm instructors. These were all good methods from the point of view of quality. Tt was very satisfactory to note, too', that

they had overcome that difficulty of fishiness in butter. They used to get some pretty stiff reports in this connection. but now they were conspicuous by their absence. They had also during the past season got over the difficulty in respect to excess of moisture. A resolution was passed at their daily division should undertake the conference twelve months ago that the testing of butter from each enurning. That resolution he had given effect to, and 121,904 churnings had been tested, and the average water content of the butter was 14.938 per cent. —practically 15 per cent. He was one of those who considered that so far as water content in blitter was concerned New. Zealand had a very favourable record indeed. He doubted whether any other country was producing, as uniform p, butter from that point of view as was New Zealand. Contrast the Dominion’s position with that of Denmark again. While our average moisture content was practically 157 per cent., the average of samples of Danish-Tested was 14.32, so that we had a good'deal in our favour from that standpoint. Although New Zealand produce had gained a good name on the Home market, there were some improvements to he made if they were to hold what they had gained. One of these was the excess of bicarbonate, of soda in butter. There was no doubt that in . getting diway. from fishiness'they had gone to the extreme in a number of cases. The' matter woul ( ] have to he dealt with next year. The name of New Zealand had also suffered to some extent as a result of stored butter going on the market as a first-grade article. These were two grounds in which they must endeavour to secure an improvement. The soda flavour was one that the dairy division would doubtless deal with, and he was hoping that with the Control Board a more satisfactory system would be evolved for the handling of the produce at the other end.

With respect to cheese, the greatest disadvantage they had to consider was openness. This had been,,.commented on not only by Mr. Wright, but also by members of the. trade. It wag a question to which they must give serious consideration. In connection with the question of grading ' generally Mr. Singleton expressed himself in favour of increasing the minimum grade for first-grade produce from 88 points to 90 points. The conference had passed a resolution on these lines some months ago, but it had not been given effect to simply because it had been felt advisable that the Control Board, which was functioning at the time, should have an opportunity of expressing its views. The time was now opportune to make the change. There were a few’ factories which did not, he thought, concern themselves very much about the grade points provided they got the turnover, and their action acted as a brake on' those who were striving all the time to raise the standard of quality to the highest possible level. He would like to see the minimum points for first grade raised to 90 and some of the factories that were running competition so hot would perhaps be inclined then to come into line with those striving for quality. Offenders were to be found in both, proprietary and cooperative concerns!

In connection with the* question of a laboratory the Minister was conversant with the position and was sympathetic, and, the speaker believed, would do what he could to see that it was provided. Mr. Singleton added that he personally reegonised the need for such an institution

Referring to the question of the economical production of butter-fat, Mr. Singleton said the farmer was studying it to-day more than he had ever done before. The slump of the ’eighties gave them the refrigerator and power separator, an c ] the slump of 1920 gave them a better idea of the cost of production, which would be of standing benefit to the industry. Last vear there were 146,637 cows in this Dominion under test, exclusive of purebreds. This represented an increase of 73 per cent, on the 84,000 odd tested in the previous season. • The number of milking machines in use increased in 1922-23 by 1000, and the increase in the number of cows milked by machine in that period was 78;000.- - : ‘ In conclusion, Mr. Singleton said that statistics suggested that the present production of. butter and cheese would suffice for, the world’s mhrkets for the time.; being. They recognised the- necessity fob high -quality' if they were to successfully meet the com petition with which they would be faced; They must also recognise the need for more cream grading, dairy farm instruction, and higher minimum for firstgrade butter-and cheese., the better feeding and ; breeding of dairy cows and more stringent culling of the lower producers as determined by testing. They liad the industry, in his opinion., well organised and if serious attention was paid to the points he bad just intimated, then lie was quite satisfied they would be able to hold their own in international comuetition.