THE OTAGO DAILY TIMES TUESDAY, MAY 8, 1906. THE GRADING OF PRODUCE.

Otago Daily Times, Issue 13587, 8 May 1906, Page 4

THE OTAGO DAILY TIMES TUESDAY, MAY 8, 1906. THE GRADING OF PRODUCE.

With the representatives of certain interests in Australia the grading of produce for export is not in favour. The objection to this step is, we gather, most pronounced on the part of the exporters of dairy produce. As we have learnt by cable, a conference, which has been sitting at Sydney to consider regulations proposed to be issued under the Commerce Act, passed by the Federal Parliament last year, has affirmed the conviction that the compulsory grading of butter is opposed to the first principles of commerce. AVhat is precisely meant by the expression " first principles of commerce" in this connection is not very clear. The grounds of objection recently taken to the Stal*-gi'ading system by the representatives of a. number of dairy factories in New South Wales are more intelligible: " the compulsory grading of butter by Government officials," it is declared, " is unnecessary and an undue interference with an important industry." But we are tempted to think that this objection is akin with that occasionally urged by some exporters in this colony to the practice of branding butter boxes with the name of the creamery from whioh the butter was purchased, and that the interests of the industry as a whole have weighed less strongly with the objectors than selfish considerations have done. For, if it be the case, as we believe it to be the case, that the institution of a system of grading by competent Government officials facilitates the tans-action of business between the exporter and the buying houses in London and tends to produce an improvement in the quality of the article, and, as a result, to secure.

better prices for tho product, it must be apparent that the interference is so beneficial to the industry as to be completely justified. The success of the grading system necessarily depends to a very large extent upon the qualifications of .the graders and the character, of the grading. In New Zealand, the importance of obtaining uniformity of grading—a matter of considerable importance, but where tliere are several ports of export obviously of no little difficulty—has been recognised by the Dairy Commissioner, and the device has been advantageously adopted by him of periodically summoning the graders together with the view of testing their judgment on butter of different quality. In Australia, where there are fewer ports of export than there are here, the attainment of uniformity of grading will be a much simpler matter, And if tliere be a rigid system of grading, it is impossible to believe that the industry will not profit materially. Any suggestion to the contrary will be received in this colony, at anyrate, with derision. The, Sydney Daily Telegraph, however, seriously believes that the grading of butter in Victoria has done no good, if it has not actuary dope harm. It supports this view by reference to a recent cable message which stated that Victorian butter officially marked " First Grade" was being returned by London retailers on the ground that it was only worth 18s per cwt less than New Zealand "First Grade," But this may not ba indicative of the unwisdom of adopting a system of Government grading so much as it may be guggestive of the necessity for the-appointment by Governments of thoroughly expert men as graders. Moreover, though the margin in this instanoe between the values or the New Zealand and Victorian articles was very large, it is not to be forgotten thai Now Zealand butter, though it realised a few years' ago several shillings per cwt less than was paid foi .Victorian, now invariably commands a higher price. For this improvement in the market value of New Zealand butter, corresponding .with the advance, in quality, the producers ha.ve admittedly in large measure to thank" the system of grading which is in operation, Even in Victoria, despite the rather depressing experience of which the Sydney Daily Telegraph makes capital, the benefits of Government grading are widely recognised. This is conclusively shown by the fact that, though there has been no compulsory grading, the number of factories that availed themselves of the opportunity of having their butter graded for export increased from Jl2 in 1903 to 122 at the end of last year, the latter figure representing 78 per cent. oF the number of factories that shipped butter. In Queensland, also, where the regulation of the dairying industry and the insipection and grading of produce for export are comparative!) a new thing, the opinion is decidedly ■ favourable ,to "interference" of the kind which some of the produoers and shippers - in other portions of the Commonwealth deprecate.' Though the grading of butter by the officials of that 1 State is only compulsory in the case of oversea shipments, so highly is the system regarded that persons forwarding butter from Queensland to the other States rarely do so now without asking the departments to grade and stamp it. Indeed, it is reported, the buyers refuse to take it unless it is so graded. In other words, the Queensland official stamp has apparently acquired in the Commonwealth 1 a reputation similar to that which the New Zealand stamp has acquired in London, where the judgment of the graders in the colony has come to be accepted as a.sufficient evidence of the quality of the article. " The grading of butter continues to give eveiy satisfaction to both buyers and sellers," Mr Kinsella wrote, with, wo believe, every justification, in his last annual report upon the dairying industry in New Zealand. "The system is," he added, " now recognised to be on a sound practical basis, and-is looked upon, almost without exception, by those engaged in the dairy business as being of the highest value." With our experience of the results of the sysitcm of grading of dairy produce and of hemp for export, we cannot help a feeling of some surprise at the strong opposition which is being offered to the .proposals of the Federal Government, already sanctioned by legislation, for the compulsory adoption of such a system in respect to certain of the exports from Australia-.