THE DAIRYING INDUSTRY.

New Zealand Herald, Volume LXVIII, Issue 20868, 9 May 1931, Page 12

THE DAIRYING INDUSTRY.

. Sir,—An article which appeared in your issue of May '6 ander the caption of " Dairying Industry," stated to have been dictated by an " authority," calls for a somewhat spirited reply. While it is desirable for all sections of the community to foster the spirit of optimism, at the same time undue optimism is not sound. With regard to the prophecy of Js £d to Is Id per lb. pay-out, it seems safer to-day to assess the average pay-out for the Auckland district at ll|d to lljd per 3b., and he would be a very bold prophet who would contend otherwise. The statement regarding the exchange premium leads one to believe that £8 10s per cent., equal to 10s per cwt., has been ruling throughout the major part of the season, but such is not the case. Produce received into grading up to the middle of December, which is practically half of the season's manufacture, benefited by an ex-change premium of only .£3 10&. per cent., equal to approximately 3s 3d per cwt. Your authority, assesses that thft industry has £2,000,000 to £2,500,000 still to come in the way of bonus, which calculates at from 2.4 dto 2.9 d per lb. on our Now Zealand export of 90,000 tons butter, and it can be calculated on butter only, as cheese factories have very small surpluses this season. Such a bonus is ridiculous. The surpluses being gained on this season's shipments of butter over and above the advances are not large, and everyone associated with the industry knows, or should know, that many factories. aro still paying off, to Tooley Street, heavy reclamations owing from 1929-30 season. These latter have little chance of paying Id bonus, let alone It is also stated that the proportion of last season's production still to go forward is negligible, but here again your informant" is at soa, for only produce in store to tho end of February has been shipped from Auckland, leaving unshipped approximately one-quarter of our butter and cheese, which surely is not negligible. The article also contended that the great bulk of both butter and cheese had been sold and that present prices are Wirgely nominal. This is also somewhat out of line, for only produce manufactured up to the middle of January has been placed in the United Kingdom, plus, of course, a few f.o.b. sales, which are not very significant, owing to their small proportions. Thus, contrary to the contention of your authority, much yet depends on tho future market. There is definitely a silver lining ahead, but that lining does not exist to-day and it is false optimism to build up the hopes of dairy farmers to an expectation of an average pay-out of Is id to Is Id per lb. when such is a practical impossibility. • S. FrHDLAT.