QUALITY OF PRODUCE

Otago Daily Times, Issue 22397, 19 October 1934, Page 6

QUALITY OF PRODUCE

METHODS OF IMPROVEMENT CAPITAL COST OF £1,250,000 The importance which the commission attaches to the necessity for an improvement in the quality of the dairy products of the Dominion is reflected in the fact that some 20 pages of its report are devoted to a consideration of this subject. Chief among the conclusions arrived at is the need for a large-scale improvement campaign involving a cost to the Stale of roughly £1,250,000. The major recommendations on this subject are set out in the paragraphs which follow.

A large number of choose factories are obsolete, and require rebuilding or substantial renovation. Better starter room and curing room accommodation and facilities arc needed in many eases, and the manufacturing equipment requires modernising. To a smaller degree, butter factories require modernising. but on the whole the equipment of butter factories is relatively satisfactory. It is estimated that about £500,000 will bo required under this head.

The most essential requirements on the dairy farms are;—(a) The provision of water for cooling purposes; (b) improvement of milking sheds (mainly concreting work); (c) the overhaul of milking and separating plants; (d) adequate sterilising _ apparatus; and (e) provision for boiling water. It is estimated that about £1,500,000 will be required for improvements that are imperatively necessary under this head.

The provision for the Dairy Research Institute of additional buildings and plant for work at present being under-

taken and for additional laboratories for dairy engineering investigation# and research work in applied animal nutrition, and for the provision of four district service laboratories, with plant and equipment, will require an expenditure of £25,000. _ Additional facilities can be made available by making arrangements for branches of the Dominion Laboratory to assist in making routine tests. The eradication of bovine tuberculosis, which is regarded as a necessary measure, both from a health point of view and as a strong advertising feature, is estimated to cost from £750,000 to £1,000,000, the amount depending on the extent to which veterinary assistants are employed l to assist qualified veterinary surgeons and the basis of compensation to owners that may be decided on. The commission has expressed the view that, regard being had to the present financial position of the dairy farmers, a fairly generous scale should be adopted, and has accordingly accepted the higher estimate of £1,000,000. This capital sum, which includes the operating costs of the initial campaign, would be spread over three years. Thereafter an annual sum of approximately £150,000 would bo required to keep the dairy_ herds free from tuberculosis, and to minimise the incidence of other diseases.

SUMMARY OF CAPITAL EXPENDITURE The foregoing capital sums may be summarised thus: — Total. Recoverable. £ £ (a) Factories ... 500,000 600,000 (b) Farms ... 1,500,000 1,300,000 (c) Research laboratories, etc. ... 25,000 Nil (d) T. B. eradication 1,000,000 Nil £3,025,000 £1,800,000 It is assumed that the Unemployment Board will be prepared to subsidise the expenditure under heading (a), (b), and (c) to the extent of from 20 per cent, to 25 per cent., thus reducing the figure of £3,025,000 to £2,620,000 or £2,518,750. The matter of a subsidy has been referred by us to the Unemployment Board, and it has undertaken to consider any proposal on its merits. RECURRING EXPENDITURE The annual recurring expenditure i> estimated as follows: —• (1) Farm dairy instruction and dairy factory instruction, which it is intended shall be universal, will cost £81,700. Part of this sum (approximately £16,000) is already s charge on the Consolidated Fund, which will be relieved to that extent. (2) Tuberculosis control, _ after the three years' initial period, will cost approximately £150,000. This sum will also cover the cost of controlling mammitis, contagious abortion, sterility, and other diseases. (3) Laboratory and research services, to be provided by the Dairy Research Institute, will cost £25,000 per annum. About £7,000 is derived at the present time from the Government and the Dairy Produce Control Board, which contribute equally, leaving an. additional £IB,OOO to be found. It is proposed that the Government contribution be at the rate of £7,000 per annum, and that the balance he found by the Dairy Produce Control Board. (4) Additional advertising and trade development services may be set down at approximately £50,000 per annum. The total annual charges may be summarised as follows: — £ Farm dairy and dairy factory instruction 81,700 T.B. control (after three years), say ... 150,000 Dairy Research Institute ... 25,000 Additional advertising and trade development 60,000 £306,700 PROVISION OF FINANCE It has been proposed that the Government shall provide the £1,000,000 required for the initial period of tuberculosis eradication and the £25,000 required for building and equipping research laboratories. These may be regarded as matters of national importance and national benefit. An estimated loss of £200,000 is provided for in respect of recoveries of moneys made available for improving farm equipment, and this it is thought should also be borne by the State. It is possible, however, that, if advances to farmers for this purpose are made by law a first charge ; as they should be, on the properties improved, this loss can be reduced to negligible proportions. The net capital cost to the State should not, therefore, exceed £1,025,000 to £1,250,000. It is unlikely that the whole of the £2,000,000 capital expenditure for factories and farms will be required to be found by the Government from loan moneys, for, with low rates of interest prevailing, most factory owners and many farmers will make their own arrangements for finance. It is recommended that advances made by the Government should be repayable over a period of from # two to five years, according to the circumstances of each case, and that in necessitous cases no interest should be payable for the first year or two years. The annual charges now borne by the Government in respect of farm dairy instruction and dairy factory instruction and the Dairy Research Institute are as follows: —

£ Farm dairy and dairy factory instruction 16,000 Dairy Research Institute ... 3,600 £19,500 It is proposed that the Government shall be relieved of the contribution of £16,000 per annum towards farm dairy instruction and dairy factory instruction, and that it shall Contribute £7,000 per annum—instead of £3,500 per annum—to the funds of the Dairy Research Institute. The revenue derived by the Government from grading fees at present exceeds the expenditure on grading services by about £II,OOO per annum, and we recommend that the grading fees remain unaltered, but that the surplus be paid over to the Dairy Produce Control Board to > counterbalance the saving effected in respect of instruction. The annual outlay of the Government will, therefore, be as follows; ■ * £ Dairy Research Institute .... 7,000 Refund of surplus of grading fees 11,000 £IB,OOO This represents a saving to the State of £1,500 per annum. Actually the saving is £12,500, for the regulations under the Dairy Industry Act provide that surplus grading fees shall be applied towards a reduction of grading fees in future seasons. It is proposed that the Dairy Produce Control Board shall be responsible for the remainder —£288,700—0 f the £306,700 for annual charges as detailed above. The means by which the board will bo enabled to find the necessary sum are detailed in the section of this report relating to the reorganisation of the board.

QUALITY OF PRODUCE

OTHER MEANS OF IMPROVEMENT Although the quality of butter and cheese exported during the 'past season has shown an improvement, there is still the necessity for the industry to concentrate upon the complete elimination of the small proportion of secondgrade butter and cheese and upon raising the quality of our total output to a standard definitely superior to that of other countries. We accordingly recommend that the following steps should immediately be taken, by regulation where necessary, to improve the quality of produce:— In regard to the production of milk and cream on dairy farms, by—(a) Introduction of Dominion farm dairy instruction. (b) Licensing of all dairy farmers. (0) Improvement where necessary of farm buildings, equipment and water supplies. In regard to butter, by—- (») Manufacturing mainly from fresh cream to ensure rich, creamy flavour in product. (b) Daily collection of all cream (subject to certain exceptions). (c) Rationalisation of cream collection and termination of excessive competition for cream supplies. (d) Cancelling in certain circumstances the registration of cream receiving depots. - - '(«) Raising the standard of cream grading and increasing differential price margin for second-grade cream. (f) Separately manufacturing cream of different grades. , - ■ (g) Greater care in manufacture. In regard to cheese, by—(a) Raising milk grading standards. (b) New waxing regulations. (р) More care in manufacture. ‘ i(d) Compulsory control of tempera- >: tures (i) of milk during pasteurisation, and (ii) in cheese-curing rooms. (e) Prolonging the period of storage in factories and grading stores . f _ of cheese made in spring. '(f)' Determining methods of payment for milk based on cheese yielding capacity. In regard to both butter and cheese, byfa) Payment of a bonus according to ,! grade points for the higher grades. (b) Publication monthly of factory grading returns. (с) Improvement in the transport of produce from farm to market. (d) Rebuilding and renovating dairy factories where necessary. (e) Providing a system of universal ■ ; laboratory assistance. (f) Frequent inspection in New Zealand of stored produce. (gj Extending present instructional services for managers and assistants. (h) Improving labour conditions. (1) Extending and intensifying present research work oh cheese openness and other defects of dairy produce. ’ V (j) Providing for the testing of dairy ■ factory plant and materials. • (k.) Arranging for commercial demonstration factories. /