DAIRYING INDUSTRY

New Zealand Times, Volume XLII, Issue 9690, 19 June 1917, Page 2

DAIRYING INDUSTRY

REVIEW OF THE YEAR NATIONAL DAIRY ASSOCIATION’S REPORT. Interesting references to the dairy industry of the Dominion are contained in the annual report of the National Dairy Association of N.Z., Ltd., to be presented at the annual meeting of members of the association, to be held at Palmerston North to-morrow. In a retrospect of the year’s work, states the report, climatic conditions are probably the important factor that makes for succeses or failure, and no review can he regarded as complete that overlooks this essential Tho dairyman, because of the character and dependence of his work, comes into close daily touch with the ever-chang-ing conditions of nature that either retard or promote the industry. If such are favourable, then the issue is not in doubt, but should it prove otherwise results are disappointing, -’peaking broadly from this standpoint the year has been exceptionally discouraging viewed as to production. The season opened early, tho milking herds were in fairly good condition, ram was plentiful and tho pastures abundant. There was every indication so far .as the North Island waa concerned for a long and profitable season. Unfortunately during tho first throe months of 1917 in consequence ot continued dry weather in the southern dairying distrets of the North Island. the conditions wore so unfavourable to the pastures _ that the milk supply diminished rapidly. The Wairarapa, the coast line from Wellington to Palmerston North and Taranaki have suffered severely. Consequently in these portions of the Dominion, notwithstanding the enhanced value of dairy produce, reteurns will not compare favourably with previous seasons. Diminished quantity with higher prices is not so advantageous to the dairyman ns increased output and fair average prices. On the ether hand, the Hawke’s Bay and Auckland provinces, which are usually dry in January to March, have bad an abundant rainfall and feed has been plentiful In this respect the season his been phenomenal and the output probably above normal. During the second week in April fine rains were experienced generally in the southern districts, grass has freshened, and, provided severe frosts hold off, the autumn and winter pastures are assured. FREIGHT CHARGES.

During the export season an Increase, was made m ocean freight on new season’s make of cheese from eleven-sixteenths of a penny to id per lb net weignt. No alteration was made in the freight of butter, namely, 3s 9d per box. Then, on November loth, , 1916, the association was advised tit at the Imporiol Government had under consideration a further advance as from the above date. Fortunately the proposed addition to the present heavy charge was not confirmed. „

GOVERNMENT ACTION.

The method’ in which the National Government has dealt with butter ami chceso during the year needs more than a passing reference. Without recapitulating the details of the butter scheme - proposed by the/ Board of Trade and adopted by tho National Government to fix the wholesale and retail prices of butter in the Dominion in October, 1916, and thus regulate values Bo as to reduce the cost of living, it is only necessary to point out that it was an ill-advised proposal, at variance with economical principles. Admitting that it reduced the cast of one article amongst many to the consumer, it was. a considerable Joss to another section, the dairymen of the Dominion, who deserve well of the community. If it was o&sential to the comfort and well-being of the citizens of this Dominion, who have enjoyed prosperous times dunng the last three years, and who should he provided with a cheap commodity of food, then it was the duty of the National Government to have given effect to this policy on business lines. In tho early part/ of tho season, if a fair and reasonable price had been paid for a quantity of butter, the Government could have retailed it without loss for cash and thus controlled retail pneos. If the scheme was inaugurated to bene lit every consumer —rich or poor—-then the State, with its resources, should have stood behind the people, shouldered the burden and not compelled a section thereof to be unfairly, treated. CHEESE PURCHASE. Now, in regard to the negotiations as between' cheese factory representatives and the National Government, acting on behalf of the Imperial authorities for tho purchase of the New Zealand output of cheese for the season 1916 and 1917, it may be desirable to place on record the steps adopted. On or about July 11th, 1916, the National Government convened in Wellington a mooting of cheese representatives from all parts of tho Dominion to consider a proposal from the imperial authorities to purchase the season’s output. After full discussion, id was unanimously decided by' the mcet,im to offer the cheese at BJd per lb t.o°b. At the conclusion of_the above interview a committee was appointed to watch the interests of producers. After considerable delay, the oner made was declined by the Impena Board of Trade. Then, on August IBtli 1916, the National Government offered to purchase 8000 tons for Imperial war purposes, at a less figure than the above quotation. This proposal was nob considered reasonable under tho circumstances. Early in January, 1917, the National Govern ment, acting under instructions, convened a further meeting of delegatethroughout the Dominion ana it was finally decided to accept 9-id per lb f.o.b. for all cheese t.ic property <n the makers then in store, and that would be manufactured up to July Ist. ]<)l7 The sale was confirmed by an Order-in-Counoil, dated January iCtn. 1917, made under section u, ot the Customs Act; 1913. m extended by section 2-1 or the Regulation of Trade and Commerce Act, 1914, prohibiting the export of ciiecse from T i:e Dominion: Probably seme factory -directors and suppliers stiff com.dci tin sale a sacrifice, and that more could lave been obtained in the open market. The point to settle is, had the exporter an ‘open’ market? Looked at from this standpoint the arrangement was advantageous to the vendors- it provided a handsome and assured return at a remunerative figure, placin'* the responsibility of arranging transport on the purchaser, and the buyer was benafited inasmuch a« it

secured an ample supply to meet re quiroments at a lower price than could be obtained by purchasing the same article landed in the United KmgBetween October Ist, 1916, and December 30th, of the same yea l , eleven shipments of cheese were made to the United Kingdom in the ordinary course of business. These consignments, on landing, were requisitioned by the Imperial Government. Kvirj'cn i*ly the latter had determined to maintain control of the new season s output. QUALITY OF PRODUCE. In regard to the general quality of dairy produce exx>ortod during the past season, that of butter has been equal to the standard of previous years. In body, moisture, and texture it has been uniformly pood. As to the complaints frequently received from London of “fishiness,” there has been in this direction a distinct advance. During the season 1915-16, such complaints were less as compared with former years, and for the ono now under review they have practically ceased. No doubt this improvement is duo in a great measure to the careful and efficient supervision exorcised by the director of the Dairying Division and his cajiable staff in the manufacture ot butter. Whilst it is gratifying to know that Now Zealand butter still maintains’a high reputation in the United ixmgdom, and compares favourably' with the best imported, there is to-day a lack of that fine, nutty flavour in much of our butter which was its characteristic some years ftgo. , . . In reference to cheese, it must be admitted that' as the season advanced there has been a distinct advance in quality. Owing to the delay in ship ment, it became necessary to holu cheese for several weeks in' cool storage. Such storage was not always of the best, and the manufacture was of necessity modified to meet the altered conditions. Experience demon strated that cheese with a firm body, close texture, and less moisture stood the test of heat better than those lacking such qualities. The general u?e of scale boards in packing is being adopted by the majority of factories, and the extra cost attached thereto is being repaid by the improved appearance and’ condition when landed. PRICES. The first important shipment of the new season’s make of butter went forward on October Otb, 1916, per s.s. R.imutaka, consisting of 519,995 boxes. On arrival. New Zealand was quoted at 210 s to 212 s for salted, and unsalted 2145. From then onwards the pneo fell rapidly until the bottom was reached about January 27th. 1917, at 1945, then values increased and reached 280 s early in March. Since then wholesale prices have been fixed by the London Food Controller. These high prices are attributable no doubt primarily to the war bavinlt interfered with the law of supply and demand. Taking the average imports into the United Kingdom for some years past at 210,000 tons in the year 1916, there is a decrease in quantity equal to nearly 30 per cent, and the present year will show a further decline. The price of cheese also has been exceptionally high, duo no doubt to the Government purchase of Dominion cheese having been withdrawn from the English market. DIFFICULTIES OF BUSINESS.

Comparing the present season with its predecessor, tne difficulties pertaining to outward and inward shipments have not decreased hut have been accentuated. During the past season from May Ist, 1916, till April 30th, 1917, 53 steamers have taken dairy produce ns against 48 for tho corresponding period of last season. The Heavy congestion ot both butter and cheese at the various grading ports awaiting shipment, the difficulty of arranging brands for export per each steamer so that every factory should have a fair proportion of the space available according to their resepective requirements, and in view of the coutinually decreasing insulated space? available, have added considerably to tho work of the office. In this connection the forbearance exercised by all shippers of dairy produce has compensated largely tor any additional anxiety and extra work. EXPORTS AND STATISTICS. The dairy produce exported from tho Dominion still finds the best market in tho United Kingdom. It the shipments of the year are compared with last season it will be found that exacts ha ervedclined by 84,834 boxes ol butter and 31,960 cases of cheese. The Vancouver trade is considerably less than the previous year and this i» also true ot the quantities forwarded to South Africa and Australia. Small consignments have gone forward to San Erancisoo. The following table indicates the quantities of boxes of butter - shipped to tho undermentioned places during the last seven years:

These quantities clearly show together with about 2897 boxes shipped to the South Pacific Islands and not included in tho above table that the whole of our exportable output of but-ter-is finally disposed of in the United Kingdom. - The following table gives the total quantity of cheese (in tons) imported to the United Kingdom from the respective countries tor the last nine years. The annual period covered is from July Ist to June 30th of the succeeding yeai:—

T'he notable feature of thw tabic iviucli covers the imports of Cheddar cheese is the increase of 13.10 per cent, from Canada and the decrease from Australia. Ihe total quantity impotv tti for the year eadiug June 3u.>h, ii>io, from all countries is 4U/-i tons_ less tiian the previous year, being cons as compared with Xtji,H'2Q totis for the corresponding period. Canada, Ne.v Zealand, and united States, especially the latter country, show an excess, of imports as compared with l'Jlo. Decreases, are shown in It.tlv, Switzerland and "other countries i.hifst imports in 1916 from Holland declined 13,070 tons. For the above period the total imports of butter to the United Kingdom were 41,939 tons less than for the previous twelve months; " *he totals being, 1915—190,390 tons, and in 191& 148.351 tons. The following tables give the total quantities of dairy produce imported

to tho United Kingdom, for tlio lastsis years ending April 30th.

(The figures in the abo-ve table for 1917 are for 10 months of the year only, viz., up to Feb. 25th, 1917.) REN NUT COMPANY. Probably the most important step taken during the year outside the ordinary routine of the industry is the formation of a Rennet Company, which is indicative of progress and foresight. The chceso companies throughout New Zealand have formed a- Co-operative Rennet Company, having for its object the saving of all raw material for ren-net-making, and eventually to manufacture same in the Dominion. The company was successfully incorporated, the shares generally being well applied for, hut, unfortunately, tho number of veils collected has been somewhat disappointing. About 25,500 veils have been received; 7000 of those were lost in the s.s. Rotorua, tho balance being now manufactured into a commercial article in England. It cannot be urged too strongly that every farmer interested in tho industry should make every effort to preserve veils. Should tho war continue for a further period the supply of Continental rennet will not he available, and it is almost certain that its substitute, pepsin, will be only obtainable in quantity inadequate to meet demands. FUTURE OF THE INDUSTRY. No doubt many to-day engaged in the industry have considered, and aro still considering, what effect the present war will have on dairying when wo return to post-war conditions! Will the demand for dairy produce bo as great then as now? Will the range of values be as high as those ruling? Will dairying be as payable and prosperous an occupation then as in the past? Probably the main factor in determining tlie possibilities of the future lies in the fact that prior to the war Continental herds were unable to supply the growing demand for beef a» a staple article of food. The result of tho war is that tho herds of the Central Powers, Balkan States, and Russia have been depleted. It will take some years to restore the balance lost and re-stock farms: and those Continental countries which have boon our competitors in the United Kingdom in the dairy produce trade will be handicapped. There will, after the war, be a stronger demand for beef and dairy produce as articles of food, and the demand for tho former will hinder tho rapid 'development of dairy herds. With such a favourable outlook, if the war ends as we believe it will, then with confidence the dairy farmer can improve and increase his herd, feeling assured that dairy produce for eomo years to come will find a profitable market at prices, not perhaps as high as they are to-day, but on a basks that will amply reward his industry and toil. LABOUR PROBLEMS.

There are two or three problems oi vital importance to the industry. Should the men in- the Second Division bo called up for foreign service under the Militant Servica Act and the factories farther depleted of skilled labour, then production will be checked. With a diminished milk supply, together with restricted labour for manufacture there must follow a lessoned production. Increased production can only come from increased effectiveness amongst all those elements that enter into production. The last problem is the intor-independence of one industry upon anothei which is to-day menaced by the general unrest and dissatisfaction of labour a; manifested by the “go-slow” policy and a disinclination to perform the best service. ■ If as an Empire, a nation, or a community wo are to succeed and conquer there must be unity of purpose. Differences must be laid aside, a mutual confidence established upou a full understanding of our responsibilities towards each other and the State as between each and every worker of the community. ASSOCIATION’S PROGRESS. The profit and loss account of the association is now in credit to .the amount of £10,045 12s 2d, an increase of £5244 0a 6d on the year’s operations. When tiio constant advances made in the value of goods imported, the increase in ocean freight, tho curtailment of receipts in consequence of the Government cheese purchase and the consequent reduction in the ratio of profits owing to high prices aro taken into consideration, the financial results for the year must be regarded as very 'satisfactory. Tho business of tho association each year show's a steady increase in volume. Notwithstanding the difficulties connected with tho purchase of supplies and disappointment arising from restricted facilities for ocean transport, the indent oi dors for the, season 1917-18 aro in excess of any previous year.. In this connection it is only necessary to remind our clients that with the assistance of our London office every effort will be made to deliver orders up to date. The membership for the year shows "a very satisfactory increase. At the end of tho previous financial year the roll was 199. it now numbers 231Under existing conditions it was hardly to be expected that thirty-four new concerns would join during the year and that the retirements would be two only. The support given by many of our members is gratifying to the executive and staff. There is still, however, in this direction some room for advancement. Loyalty to the principles advocated by the association and a more generous support and use oi tiie organisation by ah members would insure a success not hitherto attained.

Sa: n Fran- South AusCanada. cisco. Africa. tralia. 1910-11 . 8,008 — 12,998 — 1911-12 . ... 52.028 — 5.636 — 1912-13 ... 117,193 — 22,781 — 1913-14 . .. 134,243 2,764 14,296 — 1914-15 • .. 78.G31 725 14,875 6,418 1915-16 . 8.115 — 200 52,599 1916-17 . 1.5(H) 308 - 22,370

AusCanada. Zealand. tralia. 81,428 13,152 53 76,402 16.572 — 1910 76,931 22,651 207 ...... 76,457 20,256 617 ...... 72,690 24.993 93 66,424 29.4S9 23a 60,i 03 ?33.J>5G 1,067 62.192 32.515 1.61S 32,563 —

BUTTER. 1912 1911 1916 1917 Denmark 88339 87500 5=000 11000 Siberia 31122 10300 4SC00 805 Sweden 17709 17300 1060 32 France 7970 12000 13000 6000 Australia 3S221 26750 SOOO 13000 New Zealand . 11720 1GG00 17000 11000 Other.Countiics 11272 11909 12000 1C000 CHEESE. 1912 1911 1916 1917 Canada 72915 62000 67000 79000 New Zealand . 23611 34250 29000 24009 Other Countries iboiiO 23500 28000 19000