SOUTH ISLAND DAIRY ASSOCIATION

Southland Times, Issue 17347, 19 May 1913, Page 2

SOUTH ISLAND DAIRY ASSOCIATION

ANNUAL REPORT. AN INTERESTING REVIEW, •The annual report of the South Island Dairy Association has been issued by the secretary, Mr J. R. Scott, and the following extracts cover the most interesting portions : The Association have sold locally this year cheese to the value of £12,000 at from 7d dqyvn to 5%d, for the market has been a dragging one with a downward tendency up till now, but owing to the small supply of cheese now In sight, owing to very many largo factories turning on to butter making, or separating the milk for some other factory, the probability is that we shall see improved prices for local cheese ere long. More especially is this to be expected if factories would all put their local cheese in the hands of the Association for sale. Selling outside toe Association tends to keep prices down. So far, the selling of local cheese by the Association seems to have satisfied most, if not all, of the factories doing business in this way. The increase on cheese exported to Great Britain from the dominion is about 26 per' cent "(from 'this must be deducted about 14,000 crates lost in the Turaklna, which brings it down to 2214 per cent., to land in London), and there is a decrease in'Jthe butter exported to Britain of'about & per cent from the dominion.,, But., the,, increase in the.,export of butter to Vancouver and South Africa more than’ makes up for this decrease to, the United Kingdom. The shipments from Lyttelton and Dunedin both in butter and cheese show most satisfactory increases. The shipments of cheese - from Bluff , from September toiMay (the usual export season) are short ,of last .year by about .3.00.0 crates, bnt' if June shipments are included, this year is- a few crates over last year. Southland"had - a cold wet spring which checked" milk -supply, and the summer has been a cold one, and autumn colder than usual. It has not been a good - season for Southland all along. CASING. Cheese crates are gradually getting more uniform, as nearly all factories have discarded the ..mailer hoops and adopted the modern large size. It would be a good thing if this Association could contract with a sawmill company to make a uniform crate for this Association, to be regularly distributed to the factories in proper time for seasoning and drying, and with three-quarter inch centre!?, and made and branded with each factory’s name properly. At preesnt the fire brand is good, but the impress brand generally is - far from satisfactory. This matter Is worth consideration, as such a contract as suggested could be made with a sawmill company, and probably this would be more feasible than a factory for making crates and boxes as owned and run by the Taranaki factories at Eltham. THE HOME MARKET Both for cheese and butter has been a great disappointment to all in New Zealand, more especially the cheese market. Members have been kept informed of the trend of markets, so far as was possible by the circulars Issued monthly by this Association, also through the press of the cabled news coming to the Association. Butter has had several adverse conditions against it. The unusual mildness of the autumn and winter on the Continent and in Britain caused increased production of butter. The large quantity of secondary quality butters constantly landing from Australia had a depressing Influence. Here’it may be noted that Australian butter, generally a few choice Western District factories only excepted, has ruled 6s to 8s per cwt lower than toe average of New Zealand. The inferiority of much of the Australian butter’pulls the market down for their own best butter, and affects New Zealand as well. Then butter has a formidable antagonist in margarine. The London Grocer says : “No returns are available of . the output of margarine in this country for the period, but the following are .the imports from abroad: — Tear Year. Year. 1912. 1911. 1910. Cwts. ~ 1,352,427 944,405 1,120,812 a ' Jan. Jan. Jan. f 1913. 19l!2. 1911. Cwts. . 110,362 99,477 68,027

Probably as much margarine is made in Great Britain as is imported, for there are factories all over the country. Quality has been much improved, and probably hundreds of thousands of people living in hotels, lodging houses, or taking their meals at" eating houses, never eat butter, only -margarine, and don’t know It. Grocers push the sale of it, as there is much more profit in its sale than, in that of- butter. But despite these drawbacks.., New Zealand butter , should have maintained,a better price, as choicest butter was always scarce, and most of the New Zealand butter was of the class choicest, . ... There seems little doubt that butter as well as cheese .suffered from the unwholesome . rivalry of many selling agents, many of whom were always nervous and. .anxious to sell, and there was no real attempt to co-operate and hold up prices, which in “choicest" butter should never have been difficult if our butter had been all in the rfgbt hands —the fewer the -better,. - .On this subject Mr Ellison, representative of the National Dairy Association in- London, writing under date 19th March, says : "New Zealand butter as a matter of fact is in a class by Itself, but has been seriously handicapped by other colonial butter, Much better prices could be got for our butter if It were so placed that more control could be exercised at this end; at present it is' spread too much.” Now L there Is little doubt that the inferiority of much of the Australian butter is due to home separation, and a departure from the original creame'ry system, for previous to the coming in of home separation in Australia their butter topped the London market over New Zealand, but since then has gone down year by year.” Let us take warning in New Zealand for the same may happen, as home separation is coming rapidly Into vogue in New Zealand, and unless the greatest care and supervision is exercised over the collecting of cream, our butter will deteriorate «a*d lose its good name and position on the British market, and the earing for and the supervision of this collected cream is not an easy proposition. Cheese this time last year was 73» to 74s per cwt; this year it is about SS». Of course, last, season Britain suffered from a drought, and this season the make of cheese in Britain would be greater, but probably not above normal. The position as to the imports of Canadian and New Zealand cheese for the past five years is given in the following table from the London Board of Trade returns during the four months from November to February, which shows that the increase in New Zealand imports is about counterbalanced by the decrease in Canadian cheese, and also shows that during these months this season the New Zealand and Canadian imports combined are less than they were in the three previous (seasons : * 1 909-10 1911-12 1912-1-2 Canadian .. 21,700 15,802 13,829 New Zealand 5,337 9,514 11,357 Total .. 30.037 25.216 25,196. Here it may he stated (hat Canada's export of cheese goes steadily down year by year, mainly due to her rapidly increasing population consuming a greater quantity year by year. It does not, therefore, appear that the statistical position of.the.ciice.se market warrants such a t'llg drop in prices as has occurred this year. it appears there are other reason:-. But it may be confidently said that prices have suffered from the multiplicity of agents employed to sell our cheese, many of whom are only on the fringe of the cheese and butter trade, and employ brokers to sell their goods in TooU-y Street and elsewhere ax quickly ax possible. This Aexociation have put forward various xohamax for uniting to improve rualtarx, and tha National Dairy Axxoaiatlon have dona the aatna, but tie good hex some of tbam becauxe featariax did not anything Hka unitedly eeme into thoxa aahamex. '"Home Rule” government prevails'in most ,factories, and it ix not surprising that dlreatorx of factories like bo'manage their otviV affairs and deal with their own produce a* they please. Now, the question for consideration anything more be attempted by this Association In the interests of those consigning cheese ? It is a most difficult matter. If it were possible for all factories in' New Zealand to combine—North and South Island to-

gether—and consign their cheese only to four of the strongest and best houses in London for sale, some good would certainly come of it Or if North and South Island together agreed to sell monthly or even fortnightly, at one centre or two, the cheese shipments for the month, listed on the lines of the wool sales, some good would be done, as eventually a large number of British houses would have agents here to buy what they required. Factories in Canada consign nothing, but sell everything about monthly. If we could really unite on either of the above schemes good might be done. But the If is a very big one. Factories no doubt will consider the matter. It may be here said that there is no man or body of directors capable of safely forecasting the future of the cheese market, and deciding whether to sell or consign; nor is there any man in London who could do so. We can all be wise after the event, and this year our latecome wisdom does not help us, but it Is annoying to meet the “X told you so man,” who never knew more than the rest of us at any time. Evidently some of the best firms in London had faith in the future of the cheese market, for they offered in September from 6 3 /4 d to 6%d for the season’s output of cheese, and up to Is o%d for butter outputs. It is fortunate for them, but bad for us. that they secured so- little. THE QUALITY OF OUR CHEESE. For the first time the quality of onf cheese arriving in London has been seriously complained of. Mr Wright, of the New Zealand Dairy Division, in London, has found these complaints to be wellfounded in many cases, and has duly advised Mr Cuddie, our Dairy Commission- \ er, who issued a strongly worded and plain statement to factories in a circular.dated Ist March, 1913. The matter will be fully discussed at our annual meeting on the 4th June; Messrs Cuddie and Singleton will be present, and tha , Cheesemakers' Association have asked to. be present and confer with directors oir the matter, the question being what, steps shall be taken to improve the state of matters. In connection with this question of quality of cheese it has always been appointing to cheesemakers and others Interested in this matter who do make a high class article, that so far. the high class article, when account sales are compared, brings nothing more than what we know to be a secondary or even third class article. All, good, bad and indifferent, seems to be sold as New Zealand cheese, at a certain price. Doubtless, the grocer or merchant who buys the cheese picfcuqgie best, but so far as the factory is concerned the same uniform price comes to all, although the real difference in vahie may be 3s or 4s per cwt. MINISTER OF AGRICULTURE. Our Premier and Minister of Agriculture has our best wishes, and we feel sure that he will admit that the Dairy Industry, though not the sole agricultural industry of the South Island, as In some parts of the North Island, is of importance, and that ere long when funds permit we shall get our fair share of experimental stations, breeding stations, and imported cattle, which in the past has been provided wholly In the North Island. We only want a fair share. It is a matter to be noted with pleasure that in value the export of dairy produce has now outstripped that of frozen meat, and stands second, wool still being first on the list of New Zealand exports, so that such an important industry demands the care and attention of and a fair share in the Government expenditure.