MISCELLANEOUS LEAFLETS.

Otago Witness, Issue 2085, 8 February 1894, Page 8

MISCELLANEOUS LEAFLETS.

No. 1. — First Report of Dairy Expert in

London.

On receipt of your letter appointing me as expert and adviser to the New Zealand Government in all matters appertaining to the New Zealand dairy produce trade, I immediately put myself in communication with the several shipping companies, the produce agents, and others who handle this dairy produce in London and distribute it among the consumers throughout the country. Having had for some years a personal knowledge of these various agencies, I received from all very cordial offers of assistance to enable me to carry out efficiently the important duties with which I have been officially entrusted.

As the Australian and New Zealand Butter Committee has been only recently formed, and as it is a feature of great importance to the trade, it may be interesting to those in the colony to have a brief description of this new organisation, and some of the causes that have led to its formation. Every colonial butter producer who, by a personal visit, has made himself fully acquainted with the condition and circumstances connected with the London butter trade has felt the want of unity among the produce agents who handle Australian and New Zealand butter. There has hitherto been no combined action among these agents to protect the interest of the colonist, but, on the contrary, a general want of confidence in each other, which has in too many cases resulted in the colonist being sacrificed to the individual interest of each agent. This injurious state of things to the butter producer was inevitable so long as each acted independently of his rivals. Borne of them, eager to make as much money as possible out of the new industry, have secured more butter than they could place at its proper market value, and consequently have had to dispose of it at a less figure. The result has been loss to the colonist, though the agents have received a larger amount in commission than they would have done had they sold less quantities but at a higher figure. There was no check upon any agent ; he sold his consignments at whatever price he desired. Now he is morally compelled to sell at the price fixed by the Butter Committee. When he acted on only his own responsibility he had the power, by selling his butter at a lower figure than his opponent, of forcing down the whole of the colonial market. It is quite true that most of the colonial butter agents have done the best they could for the colonist ; but previous to the establishment of this association they were at the mercy of any unscrupulous seller. Those colonists who have acquired on the spot an intimate knowledge of the inner workings of the sale of colonial butter in London are fully cognisant of the evils which have resulted from the absence of some auch organisation as the Butter Committee recently formed. There is scarcely any trade that has not some recognised means of regulating prices, and the colonial butter agents in London have long desired the formation of a committee so as to secure greater uniformity of price for the finest butters. Among those colonists who have acquired a thorough insight into the workings of the London butter trade is Mr Henry Reynolds, of Messrs Reynolds and Co. (Limited), New Zealand, who has been over here some years, actively employed in push* ing New Zealand produce among the British public. A few weeks ago, taking advantage of an opportune moment, he called a meeting of the colonial produce agents dealing in butter and cheese, and forthwith a committee was formed to regulate prices. It is early yet to speak of actual results achieved by this Butter Committee ; but if it does nothing more this season than bring about a greater unity of action among the agents, and a growth of confidence in each other, ib will have amply justified ifca formation. Tbe committee consists of butter producers as well as sellers ; thus both interests are considered. It also has members of the wholesale trade working in unison with it, and so again secures the confidence of buyers as well as sellers. Thus it seems fairly equipped to render valuable service to the butter interests of the colony. When its members have become more intimately acquainted with each other, and have acquired a mutual confidence, they will discover that their beßt interests are not in antagonism, but in unity of action, and when that time arrives the butter producer in the colony will receive higher prices for his butter than he has hitherto done.

On the arrival of the Doric I inspected both her cool chambers and those where butter is frozen. She was just commencing to discbarge her cargo, which proved to be in a very satisfactory condition. The temperature, according to the log book, had been very evenly maintained throughout the voyage, the mean temperature for the cool chamber being 33deg Fahr., while that for tbe freezing chamber was 2J.deg Fahr. As far as the carriage and storage were concerned there was no cause for complaint, as the butter was in excellent conditon. About 1200 packages were brought over in the freezing chamber; the balance of 1900 waß therefore in a temperature averaging 12deg warmer. The best brands of butter, such as '•'New Zealand Dairy Association," the " Crown" brand, the " Anchor " brand, and a few others, came in the freezing chamber. In the cool chamber were some boxes of butter made up into lib rolls, but this has not '.found a very ready sale, as only about 10£ d has been offered for it. The three brands just mentioned, together with Mr Stead's consignment, contained about 1500 packages, or nearly half the total cargo. The balance consisted of small consignments ranging from about two to 60 boxes in a brand.

It is somewhat difficult to discover the exact amount of butter that has arrived from the Australasian colonies tbis season, but it is undoubtedly much in excess of that for the corresponding period of last jear. At the end of November last year only Borne 2255 case* had arrived from New Zealand, whilst this year the number is nearly 19,000. From Australia up to the same date lft«t year 12,782 liad arrived. This season the quantity is over 39,000 packages. This large increase is due to the importing season having commenced fully a month earlier than it did last year. The yarious arrivals from New Zealand for this season have been as follow : — The Aorangi, 164- boxes ; the Coptic, 571 ; the Rimutaka, 5497; the Ruahine, 2511; theTainui, 5224; the Kaikoura, 1564; and the Doric, 3141. Very much of these 19,000 packages is stored butter, the Doric's being virtually the first shipment of new. These stored butters have realised very good prices, those ex Rimutaka having fetched from 100s to 116s. Of course there was a large quantity of low-grade stuff among the " stored," which has been bought for pastry purposes at from 58s to 90s. In contrast to this low figure, some of the new seaeon's New Zealand butter has sold for 130b, but this is exceptional. Comparing the prices of this year with those of last; I find they are very similar up to the end

of November. This year the Ballarat's butters on November 24 fetched 116s to 12^8 for finest qualities ; last year the Aorangi's and Massilia'tf at the same date were selling from 112s to 1203, with a few fancy kinds at 1245. The Doric's and Austral's on November 30 this year have been Belling at 1163 ; while last year at the same date the Cuzco's were 116s for finest, and only very choice lots bringing more. Just at this moment the butter market is in a very un- , certain position. The best colonial has fallen 8s during the past fortnight, while Danish has regained firm at 130s, though Dutch and French have given way during that period, and to-day Danish has dropped to 1225. The agents are divided as to a further drop, some advocating a fall to 112s for finest colonial, while others say that to reduce the price again this week will demoralise the market by destroying all confidence in the buyers, who will still hold off hoping for a further fall. To enable the relative values of New Zealand, Australian, and European butters to be readily understood, I append a tabular statement of prices realised this week in the London market by these various kinds of butters :—: — London Butter Mabket— Prices Current, Week Ending December 8, 1893.

I will close this report by relating an incident that has recently fallen auder my notice, and which may be found of service to butter factories in New Zealand. One of the best factories in Australia undertook to supply weekly a London firm with ZOO to 7500 boxes of the finest butter. Knowing the high class of butter made at the Austral an factory, the London firm registered a special brand for it, and spoke very highly to the wholesale dealer of the quality of the butter they had persuaded him to take in place of Danish. The first consignment was sold •' to arrive" at 1265, ■which was more than the official price for finest Victorian butters. The butter arrived in the Ballarat, but the wholeBale dealer refused to accept delivery on the ground that it was not" equal to the finest Victorian. I was asked to carefully examine the consignment, and after a thorough examination it was found to be very uneven in quality, scarcely any two boxes alike. Nearly every box was " marbled," some but slightly, others very distinctly. Besides this, some of the butter had a "tallowy" flavour ; and altogether I could not report that it was equal to the finest colonial butter. How such an occurrence could have happened is inexplicable, for I know the Australian factory has for some years sent butter to London which is everywhere recognised as being the finest quality. A second consignment by another ship is said also to be very unsatisfactory. The result of this inferior butter being forwarded, instead of the quality according to contract, has done much to barm the Australian trade. The London firm are very much annoyed, and have abandoned the special brand, as its reputation has been spoilt, and besides are very dubious about again extending their enterprise in colonial butter when they meet with such discouraging treatment. The wholesale dealer has refused to replace his Danish. by any more arrangements for Australian, and thus the colony concerned loses a market that might have developed very considerably. It is quite possible the Australian butter factory proprietor was not aware that the butter he was consigning was not equal to his best; but he should have taken greater care that his new customer received goods of the quality for which he contracted. I have related tbis incident because there appears to be a belief among some colonists that the London agent will reßfc content bo long as the butter bears a brand of a high reputation. This is a great delusion ; nowhere is the quality of butter moro closely scrutinised than in London. Samuel Lowe. London, December 8, 1893. New Zealand Department of Agriculture, John D. Kitchie, secretary, January 29.

Per Cwt. talian ... Baskets and casks ... 110s, 114s. 120s Canadian ... Creamery 86s to 903 Canadian ... Dairiea 74s to 76a American ... Creamery 80s to 90s American ... Factories BUs to 90s Australian... Victorian factories ... 112*. 116s, 120s Australian... Victorian dairies ... 90d to 106 a Australian... Adelaide factories ... 100s to IUGs Australian... N.S. Wales factories 110s, llfis, 118s tfew Zealand Factories 108s, 116s, 120s, 126s Sew Zealand Dairies 85s to 100 a

Normandy... Fresh rolls 159,145, 12s 6d, Us 6d per 121b Per Cwt. Normandy... Baskets, extra (fresh) 120s to 122s Normandy... Baskets, best (salt) ... 112s to 114s Brittany ... Baskets and crocks ... 96"stol08s Danish ... Casks 122s to 128s Finnish ... Casks 94s to 100s Russian ... Casks 84s to 104s Dutch ... Casks, ordinary ... 106s to 110s Dutch ... Casks, creameries, beat 112 ato 116s Irish Farmers' firkins (salt) 96* to 1063 Irish Ordinary factories ... — Irish Best factories 110s to 116s Irish Creameries — Italian ... Rolls 11s 6d, 12j, 12s 6d per 12lb