VALUE OF DAIRYING.

New Zealand Herald, Volume LXVII, Issue 20561, 12 May 1930, Page 13

VALUE OF DAIRYING.

LAST SEASON REVIEWED

£20,000,000 FOR SUPPLIERS

OUTPUT 10 PER CENT. GREATER

Read in conjunction with production figures just issued for nine months of the current season, the review of the dairying industry for tho season 1928-29 which appears in tho Abstract of Statistics for -April, indicates in a striking way the. remarkable growth that is being made in this branch of the Dominion's farming industry.

The 1928-29 production was greatly in advance of that for 1927-28, yet the industry shows no indication of becoming static. Progress continues in an increasing degree. The butter-fat output last season was 10 per cent, greater than that of 1927-28 and tho current season, up

to April, has given an increase of 11.35 per cent, in comparison with the corresponding nine months of last season.

Payments for butter-fat mode to dairyfactory suppliers for 1928-29 reached tho hugo sum of approximately £20,000,000. an increase of 13 per cent, over tho total for tho previous season. Tho valuo of tho factory products was £24,362,133, an increase of approximately £2,500,000, or 11 per cent., upon that for 1927-28. In comparing tho statistics of the dairying industry for 1928-29 with those for 1927-28 it is found that there were increases in practically all departments of the industry. Proportionate costs of manufacture increased in soino directions, but the rate of pay-out nevertheless showed a substantial advance. Higher Costs of Manufacture. Tho number of factories operated fell from 500 to 490, but the total number of persons engaged, 4061, showed an increase of 3 per cent., and this was reflected in a 4 per cent, increase in the salaries and wages bill, totalling £945,000. The cost of milk and cream cartage, which is a big item among the operating expenses, advanced by 6 per cent, to £297,000, while the costs of materials and of other expenses of manufacture increased by 31 per cent, and 18 per cent, respectively, the totals being £930,000 and £954,000. Marketing expenses were practically stable at £1,087,000, an increase of £30,000, or 3 per cent., but this represented a decrease in proportion to output. The total of tho operating expenses was £24,172,000,

compared with £21,445,000 in 1927-28, and of this nearly £20,000,000 was accounted for by the payments for butter-fat. During tho year 1928-29, 257,996,0001b. of butter-fat wero sent to dairy factories in either milk or cream, tliis being 10 per cent, greater than tho previous year's figure. Of this amount of butter-fat 69 per cent, was utilised for better-making, 29 per cent, was contained in milk used for the making of cheeso and tho remaining 2 per cent, was used for condensed and dried milk, etc. In comparison with 1927-28, tho amount used for buttermaking increased 9 per cent, and that used for cheese-making 14 per cent. There was very little movement in the amount of butter-fat used for tho other products, the recorded advance being only 1 per cent. Production Figures for 1928-29. f The quantities of butter and cheeso produced increased 10 per cent, and 15 per cent., in comparison with tho 1927-28 production, and tho. valuo roso 12 per cent, in each case. Tho figures are as follows:

QUANTITIES. Cwt. Cwt. 1927-23. 1928-20. Butter .. . » 1,778,999 1,951,163 Whey butter .» 30,489 37.053 Cheeso .. .. 1,550,090 1,782.237 VALUES. £ '£ 1927-28. 1928-29. Butter .. .. 13.935.21tt 15,612.648 Whey butter ~ 207,212 268,539 Cheeso . . . . 6,640,2-tl , 7.404,549 Other products .. 1,024,607 1,076.397 Totals .. ~ 21,860,276 ' 24,362,133 Tho average amount of capital (paid up, reserve and loan) for each supplier was £72 iji 1928-29, an increase of £lO, and representing nearly one-fifth of tho average annual pav-out for each supplier, which was £345, compared with £312 in 1927-28. The yield ratios show that the average quantity of butter produced from a lb. of butter-fat was 1.221b., as against 1.211b. for 1927-28. Tho amount of cheeso produced from each 1001b. of milk also showed an increase, the respective figures being 10.451b. and 10.671b. 'Tho butter-fat content of milk used for cheese-making rose from 3.95 per cent.- to 4 per cent. Analysis of Costs. The principal items of expenditure, computed per lb. of butter-fat, comparo as follows for tho two seasons:—Pav-out, 17.99 din 1927-28, 18.57 din 1928-29; salaries and wages, .89d and ,88d.; materials, ,66d and ,86d; milk and' cream cartage, .29d and .28d; manufacturing expenses, .79d and ,89d; marketing expenses, l.C6d and l.Old- totals, 21.68<1 and 22.49 d. The value of products on the same basis was 22.02 d in 1927-28 and 22.66 d in 1928-29. The average distribution of every £IOO received by dairy factories on account of their products in 1928-29 was as follows Salaries and wages, £3.88; milk and cream cartage, £1.22; pay-out, £81.92; materials, £3.82: other operating expenses, £3.92; marketing expenses, £4.46. The undistributed surplus represented £0.78 in every £IOO, or a total of £189,324.