DAIRY PRODUCE.

Hawera Star, Volume XLVIII, 12 February 1925, Page 5

DAIRY PRODUCE.

THE WORLD’S SOURCES. £ BOARD DELEGATION’S REVIEW. PORT FACILITIES AT HOME. \ To-day we publish, the final instalment of the report made to the the New Zealand Dairy Produce Control Board by the delegation of three members that has returned from investigating the dairy position abroad. In this part of the,report, which is supplementary to the Press Association message published on Tuesday and to the extended, details printed yesterday, members of the delegation deal with dairy production in other countries —giving special attention to Denmark — and with the facilities provided for the handling of produce at British ports.

POSITION IN DENMARK. FULL OF INTEREST.

We found Denmark full of interest. With a population of 3 millions she has oetween 2oO,(jOO and 250,000 dairy farmers The history of her development, although full of interest, can only he outlined here in the briefest manner. With the repeal of the English Corn laws by Sir Robert Peel, Denmark flourished, being largely engaged m -a heat growing for the English market. With the. diminishing fertility of their lands, owing to constant cropping, and the competition of the wheat growing countries overseas, their position was becoming serious. It was at this stage they turned to dairying, the development of which is well known in all dairy countries. Now, again, the lands overseas are pressing them hard in the race for efficient and economic production. There are now 1,40 Q co-op-erative factories, practially all of which are engaged in the manufacturing of butter. The 250 proprietary factories are mainly occupied with town milk supply and the manufacture of cheese. The cheese are principally fancy varieties, which we understand yield a good profit to the manufacturers. They require to be kept for some months for the necessary maturing process. This requires finance. The butter product of the co-operative companies is sold each week, no financial assistance being required in the marketing process. In the establishment of their factories k loan is secured for the capital costs, on the joint and several security of all the members of the company,' which are managed on the principle of one man me vote. Viewing the number of butter factories, together with their total production, it will be seen that their average unit is much smaller than our own. There is no need to compare the technical methods adopted. New Zealand has kept abreast of the best thought, our practice being equal to anything we have seen. It may .be noted, however, that Danish factories dealing exclusively with whole milk, pasteurise the cream immediately from; the separator. Obesrving the extent to .vhicli turnips were grown, we enquired as to their experience in feed flavours„ ft appears that trouble has been experienced, but now only limited quantities ire given. With their system of stall reeding, balanced quantities can be fed, supplies being always taken from the store, not from the field. This system, together with their factory methods of double pasteurisation, gives little chance to development of flavours, most of their butter being consumed within a fortnight of manufacture. The cheese factories prohibit the use of any turnips by their suppliers. It is worth recording that the Danes consider their method of stall feeding all the year round is the cheapest method of production.

The industry having commenced with production o.y individual farmers and dst-.tte holders, exportation was entirely, in the hands of merchants. With the merease in production and the establishment of co-operative factories, dissatisfaction with export returns arose* with u result that Co-operative Export Associations were formed, while ( large British buyers like C.W.S. and Maypole Company established their own agencies in different centres in Denmark to buy direct from the factories. It is estimated that these two •ompanies now buy 25- per cent, of the mount available for export. The business of the Co-operative Export Associations have steadily developed since their inception. Eleven have now been established, and it is estimated that they handle 40 per cent, of the exports. The remaining 33 per cent, being sold through the export merchants. .The ,asis for purchases made from individlal factories, by the merchants and iarge English houses, is the weekly Copenh. gen quotation, certain premiums being paid over the quotation to factories producing high quality. The actual amount of these premiums is usually concealed.

The establishment of numerous cooperative factories, many of whom were small, each with its separate brand, j was recognised as a weakness in their system. An appeal was made to the oovemment to make a national brand ompulsory. They thought it unnecessary. Leaders of the industry were convinced of its necessity. A national brand society was foniied, in a few months what was denied by the Legislative was secured by the spontaneous .o-operative instincts of the people. The industry unanimously. adopted the suggestion’. The “LUR” brand was selected. It' has syice been 'made compulsory by the State. The same idea, mil much the same brand, has also been applied to the bacon industry, there is no Government grading system as we know it, at the shipping ports Government inspectors are closes’ in touch with all factories. The Government issue certificates to factories to use the “Lur” brand, which may be revoked at any time. Staves for'the keys bearing the “Lur” brand are secured from the Government, two of which are placed on opposite sides of each keg when being constructed.. 1 . The factory’s registered number, and any other nrivate brand, is placed on the end of the keg. Forward purchases made are for “Lur” brand butter. The Co-operative Export Associations have now supplemented this by a weekly grading at the ports of shipment, with nuyments based on tlie actual quality.As a contingent necessity to the “Lur” brand, all factories using the brand must compete at the national Shows. It may be added here that Finland. Sweden, Ireland, and now Australia have their National brands.

Hastily reviewing the presence of three purchasing factors, the English buyer, the export merchant, and the Co-operative Export Association, one may be led to expect an amount of competition that does not actually exist. The purchases by. the English houses are done on a quality basis, without reference to the price factor, their factories they agree to give a certain premium above the. Co-

penhagen quotation, which is not declared until all the sales for the week have been made. How then do the other two agencies proceed which do sell on a definite price basis? On Monday morning of each week the secretaries of the Merchants’ Association and Export Association confer. Having considered all aspects of the position, they decide what the price level should be for the week. It is then communicated to the individual merchants and export associations. It is not intended as an arbitrary figure, but as ail indication of the general aim. Within the next three days during which sales are made, changes mav take place necessitating a. reduction. or suggesting an advance, regarding which each agency uses its own judgment. The sales for the week being completed, the Quotation Committee meet at Copenhagen each Thursday. This consists of five dairy representatives and five merchants. It is not a commercial committee, but more of a. judicial one, the primary object of which, at its establishment, was to determine what price should be paid to farmers for their butterfat ' They inspect all available information regarding sales brought forward by members on each side well posted with the doings of their respective organisations. After being in touch with Denmark we can easily understand the scrutiny to which details are subjected. The price is then declared. All butter-fat payments are made by it. Practically all purchases have been made hearing an agreed relationship to it, and it becomes more or less the price indicator to the dairy interests of the world. Disposing ol their produce each week cold .storage is not required. Their whole method of manufacture is designed in conjunction with immediate sales. To put Danish butter in cold store depreciates its value considerably. They claim that their method of production is the cheapest, but it is not easy to make reliable comparisons or to determine what would be the lowest profitable level of prices for them. They are not looking forward to any great increase in production. But they have already developed one very considerable adjunct to profitable dairy production which has been almost entirely neglected in New Zeaand, i.e., pigraising. Experiences during its development have not always been roseate for them. Alternating German tariffs have sometimes made it far from profitable. But they have persistently gone forward until now the pig industry yields them approximatey the same amount as the dairy industry. Pursuing scientific methods they breed and feed to suit the requirements of the three markets they serve. Britain with long lean sides, lightly salted, and delivered to merchants in F.ngand a week after being taken from the sty. The large fat pig for Germany, and the smal, but well fatted, for home consumption. Experiments in feedino have been conducted tor years, arid still continue, to determine the minimum amount of food with which the maximum growth can he secured their general aim being to develop the required size before the fattening process begins. During the early efforts to establish co operative bacon factories a fierce warfare was waged by the proprietary interests, even to the length of inducing towns to prevent their erection, the general ideas in the towns being then strangely dissimilar to the country regarding co-operation. But that is now past. The co-opera-tive companies now do a large percentage of the killing. W e see evidence of the_ warfare in the co-opera-tive regulations. Every shareholder has to send all his available pigs to his own factory. Being adjacent to the British market gives them a great advantage jn this matter, even over the American production, and herein lies our greatest present disability to its development. Notwithstanding this, our dairy industry cannot claim to he on r a sound basis of economic production until pig raising has been properv developed, and with the production a way will be found to overcome distance, 'as we have found with our dairy industry.

Large numbers of testing assoeia, lions have been established, a feature of which is that members join for three years. An exerimental dairy has been established at Copenhagen, built jointly by the Government and the industry, and conducted by the Government. ' Valuable bacterioogical work is being done besides many experiments in scientific butter-making, cheese-making, with different qualities of milk, and many experiments in maturing cheese at different temperatures. Co-operative fire and life insurance companies have been in existence for many years. Both dairy and bacon companies co-operatively cover their marine risks. This was commenced during the war owing to the difficulties experienced in arranging satisfputorv covers, It Has been eonducted at a great saving to themselves, and very considerable reserves have been accumulated. It is understood . that enquiries are now being made with a view to securing their own ships. We met leaders of the dairy industry, co-operative finance, heads of experimental stations, professors of dairying, and export merchants. The> are keenly alive to probable marketing difficulties. The main desire of their industry is the maintenance of reasonably stable prices at a profitable eve In this they recognise that our interests are similar. But they also .recognise that in the last analysis the fittest must survive. No attempt to conceal our national rivalry would have been of any use, even if we .could have thought of such a course. They understand the rivalry, but also recognise the advantage of frank consultations between representatives of the two interests. We review our conversations with them with satisfaction. We met men of high integrity and capacity, and we feel sure that recurring conversations between thorn and representatives of the board " ill he of advantage to both. HOLLAND.

Butter manufactured is mainly consumed in the country. They make a variety of fancy cheese, the principal of which is the “ Dutch ” type. Most of .their cheese is of alow butter-fat. content. The productivity of its lands reclaimed from the sea offer an object lesson to those interested in similar ventures in New Zealand. LATVIA AND FINLAND.

Although not visited by ns we heard something of these countries in England. They are each producing an increasing amount of good quality buttei>. Some buyers in Britain say that Finnish is now better than Danish, but it is invariably below Danish in price. We interviewed their acting manager in England, who said they had considerable scope for dairy development. The “Valio” Association now controls the export of more than 90 ner cent of Finnish butter. Their English manager is permanently stationed at Hull. IRELAND.

Although co-operative dairies have meen established many years little real advancement has been made. Their dairy season is comparatively short, although the country would lend itself to profitable dairying. The main country interests are engaged in raising and grazing store cattle. Butter

is usually exported to Britain during summer, but they'usually have to import during the winter, at which time New Zealand is favoured. Apostles of co-operation still continue their efforts but with little result. SIBERIA. The quantities shipped to Britain during last summer were a surprise to most connected with the trade Only a short time before those who were supposed to know said Siberia would supply but little for years. Lhe first few shipments, which had evidently been made before tlie hot weather, were surprisingly good. Later trio quality quickly went off, it being then quite until for table use. Information was forwarded to you indicating that all exports are now controlled by a {governmen i committee, and details oi their very complete grading system were sent which indicate the thoroughness with" which they are approaching their task. You will notice the list contained sixty-nine faults. iris errader had to underline any that he ■ ecognised when graded. Superi lsed iv Danish instructors, who will be certain to get the factories equipped with modern machinery as soon as possible, , ve shall hear more of Siberia m the near future. Here our most serious competition may develop.

ARGENTINE. Last year Argentine took third place in tile 'suppliers of butter to Great Britain It was doubtless due to drought conditions in Australia that Argentine was able to win to that position; but the steady increase, m their production during the last lew years indicates an intention to tuin more of their grazing lands to dairying. We hear of large sume of British capital invested in the country, and of die building and equipment in modern ?tyle of new dairy factories. Their products, which we sampled in London. were very variable, a few being very fair, but most being unlit for best table use. A large portion of their butter is unsalted. Their unsalted butter usually grades higher than their salted. ' London importers inormed us that Argentine butter does lot take salt well. It frequently becomes mottled. There is a considerable demand for dry unsalted butter ‘or blending purposes, and doubtless this is the channel through which most if their butter passes. AUSTRALIA.

After touching on the Australian Daily Export Control Act, as reported in an earlier message, the delegation proceeds:—Three days spent in Western Victoria enabled us to visit some •if the factories in one of Australian’ best districts. Although mention bad been made of it to us in London, we were nevertheless surprised at the extent of fine dairy country which this Western district possesses. The pasture in • some districts had dried up •otisiderabl.v. while jn others they re re still fresh and green. Evcrywhorethcre was an abundance of feed, •uid apparently no shortage of water for factory purposes. The temperatures both day and night during our stay were much lower than we had expected, being no warmer than most districts of Now Zealand at that season of the year. Wo saw nothing in the pastures or the climate which would justify the conclusion that this district is in any inferior position to New Zealand for the production of dairy produce in their normal years. The variation of their soils aids in the maintenance of an all-round-the-renr supply, and they are capable of very considerable development. The pastures provide almost the only feed supply; practically no roots are grown. Occasional paddocks of maize aye to be seen, but not sufficient to make any material difference to the reduction. Quite a large number of pigs are raised, these being sold for local consumption, the Australian demand being equal to the production. We found that the factories are not following a uniform plan jn the manufacture of butter, some using starters, while others follow the Ne\v Zealand practice of neutralisation and flash pasteurisation. Proceeding to Sydney we were able to meet other leaders of New South Wales dairying who had not been present at the conference in Melbourne, and also to visit the South Coast dairy district. This district is entirely different from the Western district of Victoria. It varies from undulating Lo broken country, interspersed by rich flats, some of which are drained swamps. The predominating grass is paspalum. Dairying is being almost exclusively followed, even in tile broken country, which seemed to u.s like much New Zealand sheep country. The virgin fertility having passed, the hills are said to be not nearly the productive as formerly. ILe flats are rich and crops of maize and sorghum are freely grown as supplementary Western district of Victoria. The factories we visited are making a good quality of butter. Both hero and in. Victoria they assert that che compulsory pasteurisation of cream has lifted the grade fully two points. Their great disability from a marketing point of view is their weather. This year they are having a wonderful season, which will considerably affect the volume of supplies to the London market, but being subject to droughts their supplies will continue to he irregular. A large portion of New South Wales exportable surplus is marketed through the Overseas Farmers Federation in London. The Victorian surplus is for the most partsold or consigned to Toolev Street houses.