NEW DAIRY SEASON.

New Zealand Herald, Volume LXII, Issue 19086, 3 August 1925, Page 8

NEW DAIRY SEASON.

SMALL OUTPUT FOR MONTH. LITTLE MILKING BEING DONE. EFFECT OF THE FLOODS, A substantial falling ofit in production took place,'as was to be expected, in the first month of the official dairying season in the Auckland district. The receipts at tho grading stores were 5326 boxes of butter, compared with 14,435 boxes in July, 1924, a decrease of 9109 boxes. There was also a drop in the cheese figures, although the decline was not so great as in butter. The receipts at the grading stores last month totalled 889 crates, as against 933 crates in the similar period of last ygar, a decrease of 44 crates. The cheese returns would probably be the carry-over ilrora the end of last season and the figures have little significance as far as the new season's operations are concerned. In regard to the butter returns tho figures for July do not iifford a reliable basis on which to estimate the season's prospects. The production for the month is limited to farmers who milk all the year round and seasonal conditions are an important factor. This year recurring firods in June and July in the Bay of Flenty, Thames Valley and Waikato districts rendered winter milking to any extent an impossibility. The effect of the floods was widespread and any sound estimate of the season's prospects in regard to dairying production will be impossible until well into spring. SOUTH TARANAKI OUTLOOK. HEAVY DEALS IN PRODUCE. j MANY FACTORIES SELLING. Well over £1,000,000--probably a million and a half pounds, sterling—is involved in deals in dairy produce that have taken place in South Taranaki alone during the past few weeks. Agents are showing extraordinary confidonce in prices for the coming season, says a Taranaki paper, and already probably 75 per cent, of the South Taranaki factories have accepted tempting oilers rather tlian take the risk of consigning their outputs. In the majority of cases the sales affect' produce up to the end of December only, or three-fifths of the year's make, but in some cases, including., it is understood, important factories such as Hawera, Normanby and Awatuna, the whole season's output has been sold. In all cases the prices are such that the dairying community should be enabled to look forward a year at least with much greater confidence. The ruling price shows a variation of only one halfpenny per lb. * In only a few cases, where consigning is a definite policy, it is stated, will South Taranaki's produce go on the open market this coming sesson, and the consignees are regarding the unprecedented activity in the market with great satisfaction for obvious reasons. To illustrate the difference the increased prices will make to South Taranaki it would appear on the surface that, if at J.s 7£d per lb. last year £2,000,000 worth of dairy produce was shipped from the 19 factories exporting through Patea, the j value of this year's output of the same quantity at Is 9£d per lb. would be over £2,200,000, a difference, of over £200,000, or an average of roughly £10,500 per factory. If each factory had an average of 50 suppliers the increased return to each supplier would be rougMy £2lO. Possibly if 'these figures were halved thoy would be nearer the position during the coming season. The situation is deeper than it appears at first sight, however, and these depths make a decided difference to the dairy farmer. Last year those factories which sold on consignment were relieved of the burden of exchange, amounting to £2 15» per cwt., which fell upon the firm through which it was consigned. Through selling this year, however, the factories will have to stand the cost of exchange, which last year amounted in some cases to id per lb. of butter-fat. The exchange rates, however, have now been reduced to £1 per cent. Last year the cost of exchange to one South Taranaki company alone was £6OOO. PROSPECTS AT GISBQBNE. OUTLOOK APPEARS BRIGHT. [BY TELEGRAPH. —OWN CORRESPONDENT.] GISBORNE, Saturday. " The prospects for the coming dairy se&son are bright," stated Mr. Moore, chairman of directors of tlie Kia Ora Dairy Company. He added that provided favourable weather conditions were experienced during the month, the majority of the farmers on the Flats would be commencing the season with ample feed. Tho second last shipment of Kia Ora butter had just been sold in England, and an average price of 197s had been received for it. Hei fcelievod that next season would see even-better prices ruling and he thought the dairy farmers generally were in for a very good year.