MILK AND BUTTER FACTORIES.

New Zealand Herald, Volume XXXIII, Issue 10131, 14 May 1896, Page 6

MILK AND BUTTER FACTORIES.

THE 1 PAST SEASON'S WORK. INTERVIEW WITH MR. WESLEY SPKAGG.

Thk position which butter and cheese factories have occupied daring the last few years has completely changed the course and character of the butter industry. It is not that the factory produces an article superior to the best produced by skilful dairy-workers on single farms, that the factory system of working has gained such a hold over the modern manufacture of butter and cheese, for this is not the case. In many instances better flavoured butter is produced at the private dairy than is generally produced at the factory; bub in private dairies where there is one skilful and careful worker, there are many who deserve an opposite character. The great feature of the factory system is that by it the production of inferior butter is reduced to a minimum, and a practically unlimited quantity can be produced of a fairly high average quality at a minimum of cost. Ou this account we think factory production at butter and cheese is a permanent institution amongst us; and in agriculture, as in ordinary manufacturing business, the great principle of division of labour, and specialising certain branches, appears to be the inevitable result in the near future. Butter and cbeeaemaking will thus become divorced from the production of milk, just as the farmer who grows the wheat passes it on to the miller, and he in turn passes it on to the baker, each doing a certain portion of the work of a great whole. Believing thus, the other day we had a conversation with Mr. Wesley Spragg, the manager of the Auckland Dairy Association, upon the results of the past milk season and the prospects of the coming one, the chief points of which will be gathered from the [lowing notes thereof :— Your milk season has nearly closed? Quito closed. Oar factories shut up at the end of April. What have been the results of the year ? Don't know yet. We take stock at the end of this month. The long drought has been a bad thing for us and for the farmers

too. Had it not been for this misfortune I think we miebt have come out pretty well.

But prices in Eug'and have been good? They have nob been the old-time prices ; but they have been better on the average than those of the preceding year, although the market opened op rather worse, bufcyou can see that if the quantity made has been small the costs of making have been greatly increased, and a little advantage in selling does not compensate for that. Can you give a guess at your position ? Yes. Roughly I estimate that, owing to the special advantages which we hsve in London in having the interested services of our home house in selling our butter, as well as a few other circumstances which have been fortunate for us—an Australian drought for instance— we shall have made ends meet. What quantity of butter have you made for the season 1

About 250 tons.

How does that compare with last Boa<

Badly, very badly ; but then you must remember that the drought here has been a more serious matter for the country than towns' folk are generally aware of. You see our district was without rain, excepting occasional showers, for nearly four months.- ;■..:■ Have you had much troublo over the milk-testing, and paying by results? ho; very little indeed. Milk has beer) of a better quality. Speaking from memory, I should think it will have averaged quite 10 per cent, for the whole supply for the season. In that average I include all the supply, and some of the milk sent to us has been suspiciously poor. Other individual returns have shown that, with proper cows and proper care, really good milk is produced. As for the testing, you know we offered proof of the correctness of our work last year, which, by-the-bye, is again available this year. The milk • suppliers are welcome to investigate all our returns and calculations which touch this matter. You think then that these prove the correctness of the Babcock test ?

Yes. The improved Russian Babcock machine is an almost perfect one for working with. Our chemist does capital work with it.

What do you think is the position of dairy factories in the colony generally? It is difficult to say. Reports from some places are not very hopeful. 1 have had a report of a co-operative cheese factory which has informed me that the prosenfc outlook leads the unfortunate suppliers to believe that 1 Jet is all that they will get for their whole milk (whey only being returned) for the season. If that is true, something must have gone seriously wrong with them. You must not forget that no portion of New Zealand has suffered from

drought this year to the extent that this immediate neighbourhood, where our this creameries are, has.

But the Upper Waikato? Well, some portions of that got to look pretty bare, but the shrinkage in milk supply was not anything like so rapid as in our district.

You have not yet said what you think of the dairy business in the colony generally? I fancy that butter factories, where the weather has been favourable—in Taranaki

for instance—must have done fairly well. Cheesemaking has been a poor business, but it is too early yet for season's returns to be in. >

What are the prospects of the future of the industry? I think it is accepted everywhere that dairying is an established business now. It has come to stay, as Yankoe advertise ments say. Bui our methods of working will have to undergo constant revision. A few years ago there was a margin in English prices to cover the mistakes which we made at the initiation of tho present system, but that is a thing of tho past. Now any mistakes have to be paid for by the factory people, whether co-operators or proprietors. As other countries put in their claim for« share of the home market, prices must

naturally recede. Does that mean lower prices for milk; and, if it does, can the farmer produce at lower prices ? I don't think the farmer can do with lower prices. For the past eight months, that ia from the beginning of September to the end of last month, we have paid a uniform price of 2Jd a gallon for standard quality milk: that is, for milk of 3*6 per cent, butter-fat quality, or, as we put it, 10 per cent, cream quality. The skim-milk has been returned to the suppliers free into the bargain. I do not know that any careful experiments have been made in New Zealand to prove the value of skim-milk for feeding purposes. You know that the experimental stations in America give 25' cents per hundred pounds as its value, or, say roughly, a shilling for ten gallons. Some stations value it as high as 30 cents. Our farmers do not allow that they can make anything like thai value of it, but very few of them have any records of what it really has been worth. If for calf and pig-feeding purposes, it has been worth a halfpenny, then the returns for their whole milk have been threepence per gallon. Now for your question whether lower prices in England, which are practically sure to come, must necessarily bo met by lower prices for milk here. My reply is, No, not necessarily. If better methods of manufacture can be adopted, the difference may be made upon improved quality, or may he saved in some manner. What do you mean by better methods ? Well, you know that new ideas are being tried, and now and again an experiment shows how something may be made or saved ; bub I was thinking rather of bettor business arrangements than improvement! in manufacture. You mean arrangements for selling your batter in England ? No, I did not mean that. If that is possible, our London house will know what to do without our local office troubling itself. Already our batter is sold as direct to the actual consumer as I think is possible. My difficulties lie nearer home than that. You see, our district la a scattered one, and the expenses of working it, especially during a season like the past, are out of proportion to our output. Then, of course, you intend to reduce your expenses ? That is * natural conclusion, but it is not the right one. You see, a creamery handling two or three hundred gallons of milk costs as much to keep going as if it separated a thousand or so of gallons. Now, te increase the quantity of milk to a thousand

gallons would reduce the creamery coats upon the individual gallon to one-third, and most of the other expenses Would be subdivided in the same manner. To reduce the costs, by lessening our wages' sheet, as I suppose you mean, could only be done by dismissing the creamery hand and shutting up the place. You would not suggest that?

Not if you can help it Well, my idea of economising is by largely increasing our output, and the saving could go upon the purchasing price of milk, and thus into the farmer's pocket. Clearly we cannot pay it away upon expenses and give it to the milk-suppliers as well. We tried this practise for a season or two, but the results were discouraging. The ordinary risks of the business are enough for us to carry : a drought here, or a glut in England, and things of that kind, without our deliberately overweighting ourselves to begin with. What do you think the saving would amount to? . That would depend entirely upon the increase in the output. Doubling our business would make a difference in cost of nearly a farthing a gallon upon milk, or say something like a halfpenny per pound upon the butter which we should make. That would be a large saving, would it not?

Upon the double business, if we got it, it would be equal to newly £3000 for the season. You remember we are talking about the possibility of paying a price for milk. Well, clearly if this could be saved off the costs of manufacturing, we could pass it on to the farmers and be none the worse off. That would be extra payment for their milk.

Do you mean that that would happen if, for instance, your business and that of Messrs. Reynolds and Co. were amalgamated'

Not exactly. That would mean a big economy, but the proportionate saving would not be quite as great as if the business was doubled in our own creameries and factory. If any large saving could be effected, you surely ought, in the interests of the farmer, to try to amalgamate. Why should the farmer take lees money for his milk just to enable you to keep up two establishments? That is the kind of question which there besides newspaper people are beginning to ask nowadays. You see, it is one of the sets off to the blessings of competition that sometimes the competition is a little wasteful, and then either the competitors or their customers have to pay for it. Tho farmer, as I know him— the real farmer, who milks his cows and does things of that kind— believes in what he calls "healthy competition," and would hardly thank you ; lor suggesting amalgamation. Ob, farmers know better than that; bat now, do you mind saying what is likely to be the price of milk next season ? It is rather early to talk about that yet. I have already told you the possibilities. If, and with us " if" plays a big part in our business forecasts. Well, if we can very I largely increase our milk supply, as I think we can do, we shall increase the price in proportion. On the other hand, if the quantity for the coming season is to be anything like the meagre supply which we had last year, r the price paid last season — that is, twopence - halfpenny, skim-milk returned tree— will be too high. You see it is a matter of milk supply, and that is a' question for the farmers of the districts. What we can save we will give to them. The outside prospects are not better than for last season. Indeed, with moist weather instead of drought in Australia, and the increasing quantity of producefrom the Argentine, added to theoutputundertheimprovedconditionsof dairying in the European cou.ntrie3,,nothing but the best work all round, in manufacture, management, shipping, and English sales, will enable us to hold our own. It is a case for the introduction of at least the spirit of cooperation, which I take it is economy in worktop, and a' fair' Sharing of results. Taking it all round, we think we can manage tho business better than the farmers could manage it for themselves. As a matter of fact, we have given better returns on the average thin co-operators have obtained, and our people have neither found capital to work the business, nor have they taken any business risks. Of course we have wanted the "wages of supervision.'' Isn't that the right phrase ? . Suppose tor tlio present that you are to receive this increased quantity of milk of which you have spoken, can you tell me your prices ? 1 cannot positively say what they will be ; I can only say what we want to be able to give, and that is not quite the same thing. I have bold yontbat we do nob yet know what the past season has done for us. Wo have been thinking of something like this :— For .-September, 3ji| ; October, 2|d ; November,^ecembei'v?nd January, 2Jd ; FebruaryVjmd: 'Har^,'! r '2|l; and April, 3d. -Separated milk"fe'6e returned free. As far as I can see these are. extreme prices, and can, only be; given midejpiost favourable circumstances. We shall have to canvas our districts and obtain guarantees of supplies of milk before we settle this matter.

Thank you, thai is the information which I wanted. Will you now tell me how New Zealand butter compares with other colonial butters on the London market ?

London Prices Current usually quote New Zealand and Australian at the same rates. Actual returns have, I know, been in favour of New Zealand butter.

How does Auckland made compare with other New Zealand butter

Information which I have received causes me to think that Auckland stands first in the esteem of the London buyer. Are New Zealand butters always pure ? If you mean arc they free from the addition of other kinds of fat, I should say, Ye?, absolutely. Is there any establishment in this colony for the manufacture of margarine, or other imitation butters ?

None. What about the Australian colonies? A charge of having imported adulterated butter has recently been investigated in Victoria. The Perishable Produce Committee appointed to consider the matter practically declared the charge proven. The dairymen claim to have proven to the contrary, and I am inclined to accept the latter verdict.

Is it a fact that some of the faraeffContinental butters are beginning to lose their hold on the English market because they are mixed with margarine I think so, A recently appointed Commission of the British House of Commons declared that 79 per cent, of Continental butters, which they had analysed, were found to be adulterated. I notice a wonderful change in the relative positions of these butters in the Prices Current which we receive. Many of them are now quoted below New Zealand. Or, to put the same statement in other words, our genuine butter is taking first place, and these imitations are set below there. That is one of the hopeful features of New Zealand business. Should nob New Zealand take measures to publish in Britain that New Zealand butters are free from adulteration ? Individual houses aw giving guarantees to that effect) when they make Bales. I don't know that anything else had better be done. I suppose It is possible to protest too much. Have you considered the practicability of carrying the milk season on through the whole year instead of eight months? Yes. I have long thought it desirable, bub it is hardly-practicable, as our suppliers are opposed to it. I can only remember one out of the whole of our dairymen who has spoken favourably of supplying milk in the winter. When they think differently, we shall be ready to take their winter's milk. Are there any other points which, from your experience, you think ib would be to the advantage of the farmers to know ? I think not. At any rate, not just now.