DAIRY INDUSTRY

Manawatu Standard, Volume LII, Issue 243, 13 September 1932, Page 2

DAIRY INDUSTRY

PRODUCTION IN MANAWATU. LAST SEASON "UNDER REVIEW. Statistics compiled in a district survey of dairy production in the Manawatu for the season recently ended disclose that the total volume of butterfat handled was almost 20,000,0001b5., and it brought a net return approximating £1,000,000 in a season notable for its low range of values. The figures emphasise the capacity of the Manawatu and provide both encouragement and incentivo for the new season which has been entered upon witli the prospect of new production records being established. Exclusive of whey butter and casein produced, twelve co-operative cheese factories operating in the Manawatu district witliin a snort radius of Palmerston North produced an aggregate of 2993 tons the outputs varying in size from 12 to 591 J tons. Ten butter factories drawing supply from various districts between Apiti and Levin put out an aggregate of 9118 tons, the outputs varying in magnitude from 213 to 2142 i tons. The figures for the small Bainesse cheese factory were not available and do not eirt'er into the district survey. The Newbury and Whakarongo factories were the principal plants concerned with casein, the former being credited with an output of 130 tons. Actually, the total quantity of butter and cheese manufactured by 22 Manawatu factories was 12,111 tons.

INDIVIDUAL OUTPUTS. Outputs were as follow Cheese.—Taikorea 246 tons, Rangiotu 132, Glen Oroua (Tui) 278 J, Tiakitahuna 135, Mangawliata 353, Newbury 12, Oroua Downs 458, Ivairanga 5914, Manawatu Reliance 1934, Tokomnru 266, Makowhai 2104, Ashhurst 117.

Butter: Rangitikei 80-1 tons, Kairanga 516. New Zealand Farmers’ Dairy Union 671 J, Awahuri 10524, Whakarongo 213, Cheltenham 21424, Apiti 285, Levin 1500 tons. The quantity of butterfat handled by 21 co-operative dairy companies in the Manawatu district amounted to 19,959,8161b5. The average payment mado by twelve companies for the whole season, including the final distributions, was 11.676 d. Oroua Downs led the list with 12.04 d, being the only factory to exceed Is, though others were very close. The lowest pay-out was Hid. Based on the average payment of 11.676 d, the butterfat produced in the district had a net value of £966,878. These figures are approximate, but indicate the extent of the industry. The Cheltenham Dairy Company had the largest individual manufacturing tonnage. Although, in common with most other dairy companies, it showed a reduction on its output for the season 1931-32, it still handled huge quantities of dairy produce. Prom its 897 suppliers there was received at the Makino factory no less than 9,776,0081bs (4364 tons scwt. 881bs) of cream from which was extracted 3,960,8351bs of butterfat, which in turn produced 4,799,0381bs (2142 tons Bcwt. 621bs) of butter. In payment for this large volume of butterfat the company distributed among its suppliers the sum of £185,538 16s 3d, which includes the bonus payment of approximately £20,500. The average rate of advance over the whole season was Hid per lb butterfat. During the season the Kairanga Company received 16,305 tons of milk and cream and 1,481,6031bs of butterfat. The output was 591 tons Bcwt. of cheese, 516 tons lewt. of butter and 55 tons 7cwt. of whey, a total of 1163 tons with 554 tons of whey butter included, placing it second on the list. Levin was closo handy to this dual plant company, followed by Shannon and Awahuri. The outputs of the Rangitikei and Rongotea companies were practically identical. The Rangitikei Dairy Company, which may well be- included in the Manawatu district, since payments' to suppliers circulate into this area, handled 1,470,9181bs of butterfat for an output of 804 tons of butter. OVER-RUN. Four large butter producing factories had an average over-run of 21.72 and the figures varied in this instance from 20.9 to 22.9. All had very efficient management, and had reduced factory losses to a minimum. Hie re was a more marked variation in cheese yields per lb butterfat. Nine factories had an average of 2.60, and ranged from 2.48 to 2.66. The average test for 14 factories was 4.2, the lowest being 3.9 and the highest 4.5. Production figures for the Woodville district, exclusive of Maharaliara, were as follow: United 322 tons, Papatawa 202, Woodville 3064, Ballance Valley 148, Hopelands 179 tons, making an aggregate of 1157 tons from this group of five factories. Thirteen factories in the Pahiatua and Eketahuna districts had a total output of 3357 tons, the only one to manufacture butter being Konini, with 3644 tons. The figures for the other factories, all producing cheese, were as follow: Riverbank 3704 tons, North Tiraumoa 1774, Mangatainoka 290, Tararua 1794, Hamua 250, Pahiatua (Rexdale) 48104, Ruawhata 1644, Rongomai 85, Itongokoknko 2504, Nireaha 4474, Marima 107 and Newman 190 tons. Their average yield was 2.56 and average test 4.34. The total tonnage of the factories in this area represented a butterfat production of 3,206,4901b5. Five factories in the Dannevirke district produced 770 tons of cheese as follow: —Kiritaki 2724 tons, Kaitawa 934 tons, Tiratu 186| tons, Dannevirke 1624 tons and Waiaruhe 1154 tons. Their average yield was 2.57 and average test 4.22. The butterfat handled amounted to 729,3851b5. COMPARLSON WITH TARANAKI. Payments to suppliers by Taranaki dairy companies afford an interesting comparison with the Manawatu figures. The total advance by the Eltham Company for cheese-making has been 11.72 d. The Rahotu company has paid over Is pier lb. butterfat, and the Riverdale 114 d to date. The Hawera company lias brought the season’s average to Is per lb of butterfat for milk supply and 114 d per lb for cream supply. Suppliers of the Normanby company will average just over Is for the season. The average payment by Kaimiro for cheese-making will total 11.66 d per lb. and the Tarurutangi company payout to cream suppliers has averaged 11.18 d per lb. The final payout for the year by the Waitara-Taranaki company will amount to just under llid for milk and 114 d for cream. The estimated average payout of the Stratford company is Is for cheese and 11.14 d for butter, plus 4 d cartage. The Woodville company’s record of payouts for the seventeen years it has been in existence may be accepted as generally indicating the trend of values. The figures are as follow: 1915-1916 Is 6d, 1916-1917 Is Bjd, 19171918 Is llid, 1918-1919 2s, 1919-1920 Is 112 d, 1920-1921 2s 23d, 1921-1922 Is 4d, 1922-1923 Is 9Jd, 1923-1924 Is 6d, 1924-25 Is 7gd, 1925-26, Is 6Jd, 19261927 Is 4d, 1927-1928 Is Bd, 1928-1929 Is 64d, 1929-1930 Is 4 15-16 d, 19301931 1i.265d, 1931-1932 llid. Both cheese and butter unsold at the end of the season was valued on a conservative basis for balance-sheet requirements, but the steady advances subsequently made by the markets indicate that the estimate of the returns

from this source was modest. Realisations will considerably exceed expectations, and this has been a cheering factor in improving the outlook for the new season. Account sales coming to hand will enable additional payments to bo made in some cases. Cheese unsold was taken into balance-sheets at valuations varying from 56s to 60s, according to the ruling quotations when the books were closed, but the latest report was that the market for New Zealand white cheese was firm at 635, leaving a very safe margin. Similarly, butter was tnken into valuation in most instances at 105s —106 s, but there lias since been an appreciation in prices to 112 s.

Perhaps one of the most satisfying features in the season under review has been the reduction in factory manufacturing costs, increasing tiro net return to the producer at a time when he needs it most. This reduction in some cases has been steady over several seasons. With the market at present equivalent to a return of 114« per lb butterfat and reported firm and active, there has been a greatly improved outlook in the last two months, and it is hoped that values will continue to appreciate. Factories in the Manawatu already report increased production. The dairy industry is being favoured by much better conditions than was tiro case last year, and will go on towards the flush period with greater confidence. Pastures are in good heart in this district, recent rains having brought away vigorous growth.