Cheese Output Decline

Manawatu Times, Volume 63, Issue 106, 7 May 1938, Page 9

Cheese Output Decline

The Government would be well advised to accede to the Dairy Board’s request that a committee be appointed to inquire into the factors influencing the swing-over from cheese to butter production. The tendency is discernible in the export returns for the first eight months, ended March 31, of the current season. These show butter exports up by 1789 tons and cheese down by 1474 tons. Apparently the margin of 2d per lb. butterfat for cheese has not proved sufficient to maintain its output against that of butter. The trend away from cheese will almost certainly be accelerated in the present and two succeeding months owing to the operation of the dairy factory workers’ award. It reduces weekly hours of work in cheese factories to 38 in May, June and July. It is stated that it is impracticable to conduct cheese manufacture within the limits of the shorter week and that factories must either incur extra costs for overtime or close down. Reports from South Auckland, Taranaki and the Lower Wairarapa indicate that, where possible, the latter course is being taken, the milk being skimmed and the butterfat sent to butter factories. Whether the closure be permanent or temporary, applying only to the winter months, the diversion of supplies and production must be regarded seriously. It serves to increase further the disproportion of butter to cheese output, a disproportion already too marked in the earlier part of the season. New Zealand has normally to fight for good standing-room in the overcrowded British butter market, whereas she is the dominant factor in the cheese market, accounting for from 65 to 70 per cent, of British imports. That strong position should be held and improved. It should not be prejudiced by the effect of artificial prices and artificial hours. The Government as the buyer and seller of dairy produce cannot afford to allow the trend to persist and should take immediate steps to rectify the positior