DAIRY INDUSTRY

Otago Daily Times, Issue 23830, 9 June 1939, Page 6

DAIRY INDUSTRY

PRODUCTION AND QUALITY MARKETING SCHEME RESULTS REVIEW BY MR LEE MARTIN Conditions in the dairy industry during the past season, with special reference to production, quality and prices under the Government marketing scheme, were discussed by the Minis ter of Agriculture (Mr W. Lee Martin) when opening the annual conference vesterday of the South Island Dairy Association. The Ministei said he was pleased to note that the association was making steady progress and was continuing to fill a' useful place in the dairying industry in the South Island. - Decreased Production The association’s annual report, said Mr Lee Martin, referred to the decrease in production and it was to be regretted that the present producing season had been such a poor one due lo cold, damp weather at the beginning of the season and very dry conditions in midsummer over the greater part of the Dominion. To the end of April the production of butter and cheese, as shown by gradings, fell by 11.59 per cent, in the case of butler (or 15,509

Ions) and 3.3 per cent, in the case of cheese (or 2600 tons). The value of this fall in production, in terms of slerMng, was approximately £1,750 000 It was evident that the remaining months of the season would continue to show a very heavy percentage decrease in as a result ol the unfavourable weather conditions mentioned previously. “It Is Interesting to note,” the Minister said, “ that the South Island cheese production has not fallen to the same extent as butter has done, and that Southland and Otago show small increases in both products over last year. due. no doubt, to the good season which prevailed here. “It is stated in your annual report that you think it important that the production of cheese should be encouraged. I feel the Government can claim to have done this. For the 193738 season the gradings of butter fell by 7.59 per cent., while the gradings of cheese fell by 3.12 per cent For the 1938-39 season to date the gradings of butter have fallen by 11.59 per cent, while the gradings of cheese have fallen by 3.3 per cent. I doubt whether the Government should do more than it has done, as it appears doubtful whether it would be wise further to encourage the production of cheese at the expense of butter, bearing in mind the relative world markets for each.” Quality of Produce It was pleasing to note that an improvement had been shown in the quality of New Zealand produce, more especially in the case of cheese. For the season to April 30. 1939. the following were the percentages of the various grades purchased for export by the Government:—

It would be seen that the percentage of butter purchased, and receiving the guaranteed price and better, was 86.33 per cent, in 1938-39 and 84.91 per cent, in 1937-38,

The percentage of cheese purebaseo. and receiving the guaranteed price and better, was 84.90 per cent, in 1938-39 and 78.17 per cent, in 1937-38. It was noted, however, Mr Lee Martin said, that the cheese shipped from the Bluff was below the New Zealand average quality. It had improved since last season, but not so much as the average New Zealand figures had done, and he thought some inquiry into the causes for such lack of quality was necessary. Marketing Results and Prices In a resume of prices realised since the marketing system was inaugurated the Minister said that for the first season (1936-37) the figures were:— 'C o w W h S <D .J <i> Ctf o u c 3 d >H S 9 o*«h £ < cut: c. Jmoo Butter • • 104 s 2d 106 s 6d Cheese •. 64s 8d 63s 3d The deficit for the season was £272,109, which sum, plus interest, bad now been paid by the Government out of the Consolidated Fund, For the second season (1937-38) the figures were:—

The surplus for the season would be very close to the estimate of £555,000 given in the 1938 annual accounts. For this third season (1938-39) the realisations to May 25 showed the following

The deficit on produce already sold was estimated to be £ 1,827,000, and unless market conditions changed materially the ultimate loss would be still heavier. Market Conditions. The present market prices the Minister continued, were: Butler: 108s-110s per cwt Cheese; 50s-51s per cwt. In view of heavy shipments of Australian butter, and with consumptive demand below last year, it was considered unlikely that anv material ad vance would take place meantime. In regard to cheese, stocks were large and with an anticipated heavy production of Canadian cheese future prospects were not encouraging. It was gratifying to know that Mr H. E. Davis had been selected by the Food (Defence Plans) Department of the British Government to organise the plans for the handling of butter and cheese in the United Kingdom in case of war. They noticed, also that Mr George Duncan, the director of the department, had left for England It was felf desirable hat Mr Duncan should view at first hand the distribution of New Zealand dairy produce in the United Kingdom and the operation of the Government’s marketing policy. The experience gained by Mr Duncan, and the personal contacts made by him, should be of great value to the Government and also to the dairy industry.

Zoning of Industry . The Executive Commission of Agriculture, the Minister said, had continued its work in connection with the zoning of supplies to dairy factories. and as a result of this work, combined with causes such as decreasing supply to some of the smaller cheese factories, the number of dairy factories registered had shown a reduction from 412 at March 31, 1938, to 402 at the same date this year. The Executive Commission had done valuable work, and. apart from the economic aspect, had, through preventing transfer of supply from one factory to another, assisted toward improved quality, for the reason that correct standards of milk and cream grading were more rigidly adhered to when the supplier was presented from transferring his supply during the season. A better understanding between dairy companies had also developed, while in many instances very definite savings in cost of cream cartage had been shown. Farm Dairy Instruction “The slight improvement in the general quality of our dairy produce in the face of an extremely difficult season may be accepted as largely the outcome of the Dominion farm dairy instruction service,” the Minister continued, “As from August 1. 1938, this scheme was extended to cover the whole of the Dominion, and the service is now available to every supplier to a manufacturing dairy in New Zealand. Expressions of appreciation of the work being carried out have been numerous, both from individual suppliers and from dairy companies. “ The work has been carried out with practically no friction, and much of its success may be attributed to the fact that every man appointed had practical experience in either butter cr cheesemaking, and therefore ledge of milk and cream quality. In addition, each man appointed was familiar with dairy plant, and with the handling of suppliers. A great deal of valuable work has already been dont in the improvement of milking sheds and machines and the delivery of better quality milk and cream to dairy factories.” Herd Improvement The approval of the Dairy Board’s Herd Improvement Plan, and the granting of financial assistance by the Government for the carrying out of the work, he said, must be regarded as an important step in the direction of improving average cow production a? well as in the study and combating of dairy cow diseases. It was expected that the newly-formed Animal Research Division of the Department of Agriculture would take a leading part in the various tests and experiments which would be necessary. Dominion Farm Dairy Instruction. Animal Research. and the Herd Improvement Plan represented important links in the chain of the Government's service to New Zealand dairy farmers. The chairman (Mr H. H. Meredith) moved a vote of thanks to the Minister which was carried by acclamation.

Butter. 1938-39. p.c. 1937-38. p.c. 94 points and over 42.37 43.09 93-93J points . 92-92£ points . . .. 43.96 41.82 . .. 8.27 10 29 90-91J points . . .. 5.04 4.46 Second grade . ... .36 .34

Cheese. 1938-39. 1937-38. p.c. p.c. 94 points and over 1.89 .63 93-93J points .. ■. 18.58 10.44 92-92| points .. .. 64.43 67.10 91-91J points .. 13.41 18.22 Under 91 points .. 1.69 3.61

Butter 117s 9d 115s Ua Cheese .. 68s «d 68s 8d

results:— Butter .. 112s 8d I24s OU Cheese 60s 2d 7.1s 6d