DAIRY PRODUCTION

New Zealand Herald, Volume LXXV, Issue 23191, 10 November 1938, Page 13

DAIRY PRODUCTION

EVIDENCE OF DECLINE DAIRY BOARD'S REVIEW SERIOUS CHEESE POSITION IRKSOME LABOUR CONDITIONS The beginning of some decline in dairy production in New Zealand is pointed to in the annual report of the New Zealand Dairy Board for the season ended on July, 31. The report, which was .released for publication yesterday, pays particular, attention to cheese production. Variable weather last season is mentioned in the report, which states that total production showed a sharp decrease. "While the variations of one season with another affect the position," the report states, "labour difficulties are probably tin* dominating factor. The introduction of the 40-hour week in so many other industries will have an ever-increasing tendency to deflect labour from the dairy industry, where labour conditions are much more irksome.

Burden o! Costs "A very serious position is developing in connection with the production of cheese within the Dominion." the report continues. "Hven under, ordinary circumstances the maintenance of the supply of milk to cheese factories was proving difficult for two principal reasons —the work and expense entailed in delivering milk to a centre, say two miles distant, compared with simply placing the cream cans at the farm gate, where a butter factory is being supplied and the company arranges all cartage; and. secondly, the wish of farmers to have skim-milk for young stock.

"The position has been very greatly accentuated by the tendency for increased costs, due to higher wanes, shorter hours and overtime payments applying to dairy factory workers, to fall more heavily upon cheese factories, particularly the small ones, than on butter-making companies " A survey up to the end of the 15)36-37 season, adds the report, showed- that more than a half of the cheese companies were showing a tendency toward decreased output. There was an increasing tendency in that direction, and, unless something was done to improve tho position, aboiit 20 of the smaller factories would cease operations. The board had urged on the Government tho necessity of setting up a committee to investigate the position fully, but tho request had been declined. Consumption in Britain

Claims that cheese consumption in the United Kingdom is decreasing are not accepted by the board and the report quotes the views of merchants who handle large quantities of cheese on behalf of tho Now Zealand Government.

Tho merchants are convinced that cheese consumption in the United Kingdom is keeping well up to normal and they point to the increasing sale for processed cheese, offered in small fancy packets. It is also stressed that Great Britain is a universal receiving centre for butters coming from all parts of the world, whereas the bulk of iihport cheese comes from Canada, Australia and New Zealand. "In my mind," states one merchant, "the retail demand for cheese is mora stable than that for any other commodity. Although there are variations in price from time to time, the demand seems to absorb all the supply. 1 am somewhat apprehensive that there may be too great a switch-over from cheese to butter, particularly in view of labour problems in all the countries of manufacture.

"I believe, furthermore, that if the total quantity of cheese imported during 193 d could show a 10 per cent increase, the public bould absorb it without the price having to be drastically reduced, although there would, of course, have to do some necessary adjustment."