DAIRY INDUSTRY

Hawke's Bay Tribune, Volume XXVI, Issue 145, 4 June 1936, Page 11

DAIRY INDUSTRY

Development from Small Beginning

TRANSPORT PROBLEM

The growth of the dairy industry in New Zealand from its beginning in 1870 up to the present time was the subject of an address delivered by Mr D. G. Begley, chairman of the Pukahu branch of the Fanners’ Union at a meeting of that body. Mr Begley explained that most of the early attempts at land development were carried out by companies which provided the capital and labour. Au expedition sent out in 1826 to Hokianga failed after two years, but in 1837 Gib-

bon Wakefield established a company with branches at New Plymouth, Wanganui, Nelson and Otago, and acquiree 20,000 acres. Owing, however, to the attitude of the Queen’s Commissioner, who was sent out to settle the land claims of tho Maoris, and the the policy of making free gifts of laud, much trouble was experienced and the cetn pany failed in 1839. Sir George Grey’s policy of eheap land, reducing it form £3 a.u acre to 10/- and even 5/-, laid the foundations of the pastoral and agricultural farm ing in this country. However, it permitted land aggregation, and no Gov ernment attempted to atop thia for 20 years. IMPETUS TO DEVELOPMENT. This cheap-land policy, assisted by the discovery of gold, increased tho population and gave great impetus te land development and agriculture. The gold rush iu Australia opened up a profitable market for New Zealand wheat. During the 10 years from 1852 the population in New Zealand grew from 28,000 to 99,000, and in the decade from 1861 to 1871 from 99,000 w 296,000. Local markets were established and £200,000 worth of non-perishable goods was exported. The year 1870 saw the beginning of the dairy industry, butter being made on farms by the farmers themselves. It was, however, of a relatively inferior and variable quality.

The first separator made its appearance in 1879, and at that time experi rnents were being earned out with refrigeration. An eveut of vast import, anee took place in 1882, when tho first shipload of meat aud dairy produce was sent to England. Two years latei the Government offered a £5OO prize for tho first butter made uuder factory conditions. It is said that a Chinese, Chew Choug, was the first man in Tara naki to make factory butter, but there is uo record of anyone winning the prize. At first private capital was behind the factories, but the period from 1882 to 1900 marked a decided advance in the formation of co-operative factories.

From 1900 io 1912 there waa a dir tinct improvement in price and quality, and iu the latter year butterfat brought 1/- a lb. Tho war decreased the pro duction, but increased the price aud began the inflation of land values whies had caused so much trouble.

By means of excellent charts, Mi Begley showed the growth of New Zealand dairy produce, explaining that, that although there were just as many cows in Great Britain as in New Zealand, most .of the milk was used for city supply and the surplus was made into cheese. In 1914 the Canadian cheese held most of the English market from overseas, -but now, owing to grading and research, New Zealand had , captured 75 per’ cent, of tho market, and that was one reason for the apprehension felt by the English farmer. Other results of the war were tariff barriers and the fact that foreign countries were building up their production. Russian production had increased from 8000 tons annually to 28,000. So, the speaker continued, we should have to tread warily, as we had no new markets and would have to depend entirely on the United Kingdom. INTERNAL DIFFICULTIES. Referring to internal difficulties, M> Begley said that iu the days of the horse-drawn vehicle, factories were placed close enough to serve that tnodo of transport, but with the advent of th. lorry aud home separating there began war between factories for supply and local markets. This war was, of course, a waste of money, and in the end the farmer had to bear the cost. When prices overseas were good there was little trouble, but when prices feii, then the squabble started. Three years ago an organisation was set up to eo-ordinate dairy factories—namely, the Dairy Producers’ Co-opeia-tive Agency, which took over the marketing, organising and distribution, ami eliminated wasteful competition between the factories themselves. Competition between co-operative concerns, said Mr Begley, was uneconomic and absurd, as iu tue long run the farmer paid the piper. The meeting then concluded witn a i ote of thanks to the chairman for in* interesting address.