THE DAIRYING INDUSTRY.

Otago Daily Times, Issue 19800, 27 May 1926, Page 10

THE DAIRYING INDUSTRY.

SOUTH ISLAND ASSOCIATION. PAST YEAR REVIEWED. The annual report of the South Island Dairy Association, which will be presented at tne annual meeting to be held at the Y.M.C.A. rooms on Wednesday morning next, shows that the credit balance for the year’s working, after reasonable provision lor any decrease in the value of the assets, is £l2o 12s Cd. It is to be noted that the membership roll now stands at 117, compared with 128 last year. The trading transactions of the association continue to increase. The turnover for the year was larger than that for the previous year, although prices of most goods showed a reduction. It is evident that every year more factory directorates are appreciating the assistance which they undoubtedly receive from the association in keeping down the cost of production to the lowest minimum. There is still a determined effort being made by competitors to secure the factories’ business, regardless of cost, but so far the position has been met. The machinery department, which was started 18 months ago is now firmly established. This branch of the business has been kept fully employed during the year, and a large number of installations of machinery have been successfully carried out, including a complete butter plant for the Staveley Company and a cheese plant for the Drummond C< From iy Lvttelton there was exported 62,708 boxes of butter and 15,014 crates of cheese as compared with 101.498 boxes and 20,545 crates the previous year; from limaru, 18,900 butter and 7464 cheese, as against 26,804 butter and 5612 cheese; from Dunedin, 37,569 butter and 22,830 cheese, as against 54,616 and 25.578; and from Bluff, 1b,696 butter and 120.449 cheese, as against 24 310 and 123,472 respectively. The total quantities shipped from these P° rl s were 156,173 boxes of butter and 16j,/5( crates of cheese, being a decrease compared with tne previous year of 81.055 boxes butter and 9150 crates cheese This, however, does not mean that there has been a corresponding decrease in production; as a matter of facE in the case of cheese, 6454 more crates were received into cool stores for export than was the case the previous year The explanation is that on account of the r ff ul “ lion of shipments there was a much laiger quantity in store awaiting shipment at. the end of'this year. There has been a large decrease in the production of butter, however, although it is not possible for us to give the exact figures, as we 1 I av0 ,"?, P f ticulars as to the quantities being held for local consumption. For the whole• of the Dominion the quantitjes graded for expmt during the year ended March 31 lart were 61,312 tons of butter and 73,11.9 ton. f cheese, as compared with 61,918 and 09,i0+ tons respectively the ycar The market price for butter has aga fluctuated considerably ( urn^ m f e de P ee year, although not the same e as in some previous ycais. At the ue ginning of October, when the market was bare of supplies, the High Commissioner was 230 s to -34 s per cwt; at the end of October 2125; to 216 s at end of November, -04 s to -08 s. then the?e was a drop to 190 s on December 5 followed bv a further drop to 170 s on December 19 and to. 162 s on December 04 The price then improved to lii>» to' 174 s at the end of December, since which the market has remained round about those figures. At the beginning of this month, when the general strike commenced—it has fortunately terminated the British Government fixed the maximum price for New Zealand butter at 170,- pcr cwt, which was the price ruling on April 30. It is feared, however, that owing to the accumulations which occurred while the strike 1 isted and for other reasons, this price cannot be mamtained, and that there will be a sharp decline in the market in the near future. The difference in mice between New Zealand and Danish butter on the London market, has not been nearly so great during the past year as previously. llie average difference over the whole year was approximately 15s per cwt, whereas the previous year it was 265. The greatest difference was 26s on February 2< last, when New- Zealand was quot.d at 172 s and Danish at 198 s. On the other hand, on October 3. 1925, quotations were the same—viz., 2285. The only reason we can give for the improvement is that the consumers are beginning to realise the high quality of our butter, and that there is little or no justification for the disparity in price which has existed as between the Danish and New Zealand product. It is believed that the display of our products at the Wembley Exhibition, as well as other methods of advertising which have been followed recently, have helped matters considerably. There has also been a decline in the price of cheese during the year, although not so marked as in the case of butter. In October the price averaged per cwt; at the end of December it had dropped to 08s, when it, improved to 104 s at the end of January, after which it gradually receded to 93s t the end of April. This was the maximum price fixed by the Government at the commencement of the strike. For the same reason _as stated in regard to butter, it is anticipated that low-er prices will be ruling shortly. There has been a decided improvement in the quality of the produce during the year, and although the standard for firstgrade has been raised tw'o points, the percentage of second grade manufactured was very small. The establishment by the Government of a laboratory and experimental, factory at Wallaceville, Wellington, should be of great rervice in ihe direction of raising the quality still higher, as well as in the development of the industry generally.

It is gratifying to note that in:.rest in dairy herd improvement has become more general throughout the South Island, as well as in other dairying districts of the Dominion. There has been a considerable increase in the number of herds and number of dairy cows on test for yield, and the future promises further extension of this most valuable work. It is becoming more generally recognised that the information obtained from the testing of the herds is a notent factor in inducing daic farmers to head their herds with pedigreed hulls of butter-fat record backing. Better breeding has a direct influence towards reducing the costs of butter-fat production, and it is by more economical production that the producer can do most to offset the influence of any decline in prices which our butter <and cheese may sustain in the world’s markets. The production of New Zealand’s cow, although creditable when compared with other countries, is still capable of improvement. The retiring directors for the year are Messrs John Smith and J. S. Grieve, both of whom are eligible for re election.