DAIRYING INDUSTRY

Southland Times, Issue 20499, 30 May 1928, Page 3

DAIRYING INDUSTRY

SOUTH ISLAND ASSOCIATION. REVIEW OF THE YEAR. MARKETING THE PRODUCE. The annual report of the executive of the South Island Dairy Association to be presented at the annual meeting at Dunedin on Wednesday next (June 6) is as follows: After making reasonable provision for any decrease in the value of the assets of the association, this account shows a credit balance for the year of £484 13/7, which we recommend be transferred to the capital fund account. The roll now stands at 109, a decrease of four members as compared with last year. The business transacted during the year in supplying factories with their manufacturing requisites has been most satisfactory. Practically all our members obtained their requirements on indent through the association, notwithstanding the keen competition from other firms to secure the business. It is very pleasing to us to note that factories are realizing more and more every year that it is to their benefit to support their own organization in every way possible. We are fully conscious of the fact that the primary purpose of the association is to further the interests of its members, and it is with that object in view that all our deliberations are based. Needless to say, the more assistance we receive from members, the better will be our position to improve their interests. A large amount of repair work and a number of installations of machinery and plant were carried out by the Machinery Department during the year. This branch is now firmly established, and factories who place any orders with the association can be assured of a satisfactory job at bedrock cost. From Lyttelton there was exported 62,706 boxes of butter and 17,303 crates of cheese, as compared with 63,989 boxes and 17,377 crates the previous year; from Timaru 12,314 butter and 10,002 cheese, as against 20,047 butter and 10,042 cheese; from Dunedin 42,749 butter and 34,951 cheese, as against 63,616 butter and 20,637 cheese; from Bluff 23,049 butter and 164,893 cheese, as against 26,842 butter and 135,448 cheese respectively. The total quantities shipped from these ports were 140,818 boxes butter and 227,149 crates of cheese, being a decrease of 33,676 boxes of butter and an increase of 43,915 crates of cheese as compared with the previous year. PRODUCTION. The total quantities received into cool stores and graded for export at South Island ports during the year, as compared with the previous year, were as follows:—•

Decrease for 1927-28 4,835 crates For the whole of the Dominion the quantities graded for export during the year ended March 31 last were 77,756 tons of butter, and 82,051 tons of cheese, as compared with 62,729 and 75,878 tons respectively the previous year. It will be seen from the foregoing figures that although there was an increase in the production for the whole of the Dominion of 15,027 tons of butter and 6,173 tons of cheese as compared with the previous year, the South Island shows a decrease of 38,315 boxes (958 tons) of butter and 4,835 crates (345 tons) of cheese. The reduction in the South is no doubt attributable to the lateness of the spring, followed by the exceptionally dry summer experienced. The more favourable climatic conditions in the North during the early spring months compensated for the dry spell which they also suffered later in the season. We are pleased to note that increasing interest is being taken by dairy farmers generally on the most important matter of the improvement of their herds. There has been a marked increase in the number of herds on test for yield in the South Island, which goes to show that producers are recognizing the fact that any improvement in the quality of their herds which they can effect as the result of testing will more than compensate them for the expense and time involved. Better breeding has a direct influence towards reducing the costs of 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. Although creditable when compared with other countries, the average production of the New Zealand cow is still capable of much improvement. The topdressing of pastures with suitable fertilizers has also, of course, a strong bearing on the matter of increased production. In this connection there is little doubt that the abnormal use of manures in the North Island during the past year, as the result of what has been described as a ‘‘fertilizer war,” with the consequent reduction in cost to the farmer, has had a strong influence in the large increase in production which has been recorded in the northern provinces. We understand that a new company has been formed in Dunedin for the purpose of manufacturing fertilizers, and that, it is proposed to erect works on the outskirts of the city. The project is one which should be highly successful, and we trust it will be brought to fruition on an early date. Should the result be—as we hope it will —that good fertilizers will be made available at more economic prices than at present, there is no doubt whatever that farmers would accept the opportunity offered to improve the fertility of their land by the more liberal application of good manures than has been possible in past years.

It is pleasing to note the continued improvement which has been effected in recent years in the quality of both butter and cheese. Much of the credit for this must be given to the Dairy Division for its excellent grading system, for its system of farm dairy instruction, and also in the case of butter, to the system of compulsory grading of cream inaugurated last year. If a solution of the difficulties attendant upon the adoption of a compulsory system of grading of milk could be found, we are sure the quality of our cheese would be still further improved. Much valuable work has been done by the research laboratory at Hawera, under the supervision of Mr Veale, and the establishment by the Government of a Department of Science and Industrial Research will, we are sure, be of valuable service in elucidating the problems with which the industry is confronted. MARKETING THE PRODUCE. TWe following figures will serve as an indication of how the butter and cheese markets have fluctuated during the past two years:—

I It will be seen from the above that a stable market, which is the desideratum of every dairy producer in the country, appears to be as far from attainment as ever. As compared with butter, the prices ruling during the past year have been in favour of the cheese manufacturers. A considerable percentage of the cheese from the South Island was sold f.o.b. at prices ranging from B|d to 9d per lb. Those factories who were successful in obtaining the latter figure have reason to congratulate themselves, more especially the Southland Factory, which had the good fortune to dispose of their whole season’s output at that price. A number of f.o.b. sales of butter were made at prices up to 1/5| per lb. Some time ago the Control Board launched out in an extensive scheme of advertising in the United Kingdom, which, if continued, is bound to have fruitful results. Any expenditure incurred in this direction is money well spent. We are optimistic enough to believe that in the near future when by advertising and the maintenance of a high-grade quality we have convinced the British consumer that there is no finer butter, and cheese in the world than the “Fernleaf” brand, the disparity which now exists between the market prices for Danish and New Zealand butter and Canadian and New Zealand cheese will be in our favour instead of the reverse.

For many years it has been found necessary on occasion, in order to get the produce exported with as little delay as possible, to tranship by coastal steamer from one port to the overseas steamer at another port. It very frequently happened, however, that no suitable coastal steamer was available, and in consequence the opportunity to get the produce away could not be accepted. The cost of forwarding it by rail was prohibitive. For a considerable time we have endeavoured to get the Railway Department to reduce their rates on produce railed from one port for transhipment at another, and we are pleased to report that our representations have at last succeeded. The Department has now agreed to rates between Bluff and Dunedin (or Port Chalmers) and between Timaru and Lyttelton equivalent to the coastal freight. For various reasons, it is a decided advantage to have the produce consigned by rail; the most important one being that the produce being carried in insulated waggons is delivered to the overseas steamer in much better condition than when conveyed by coastal boat with no insulated space. When produce is transhipped, the charges are, of course, borne by the overseas ship, and there is no extra expense involved on the factories.

In our last report, we mentioned that a reduction in the rates charged on butter and cheese exported from the port of Dunedin had been obtained from the Otago Harbour Board. It is now our pleasing duty to record that reductions have since been secured from the Bluff Harbour Board, the old and new rates being as follows: Old Rate. New Rate. Cheese, per ton ..3/- 2/Butter per ton .... 2/6 2/These reductions commenced as from September 1 last, and for the present season represent a saving to the Southland producers of £590. Over a full season the saving will be £750.

National Industrial Conference.—During last session of Parliament, it was decided to hold a national conference to discuss the present Arbitration system and its effects on the industries of the country. The dairy industry was allotted five representatives. Three were appointed by the National Dairy Association to represent the North Island and Messrs H. J. Middleton and John Fisher were appointed by this association to represent the South Island. The conference has just concluded, and Messrs Middleton and Fisher will make a report to members at the annual conference in June, as the findings and recommendations arrived at insofar as they affect the dairying industry. The butter and cheese makers obtaining the highest grades for export butter and cheese respectively for the ne’iod from October 1, 1927, to April 30, 1928, as per graders’ certificates are as follow’s:—Butter Maker: Mr J. Pellowe, of the Taieri & Peninsula Factory, Dunedin, with an average grade of 94.574. Cheese Maker: Mr Neil Marshall, of the Omimi Factory, with an average grade of 94.005. Messrs Pellowe and Marshall will be presented with gold medals at the annual conference. The retiring directors this year are Mr H. H. Meredith, Waimate, and Mr William Stalker, Rangiora, both of whom are eligible for re-election. The only nominations received'are in favour of these two gentlemen. We much regret having to record the death recently of Mr Thomas Parker, Stirling. Mr. Parker was prominently connected with the dairying industry in New Zealand from its infancy, and was a valuable member of this executive for a number of years. SHIPMENTS FOR SEASON 1927-1928.

Comparative statement, showing quantities of cheese received into cool stores for export, and quantiites of cheese and butter shipped during the years ending April 30, 1927 and 1928, respectively:—

—Butter.— 1926-27 1927-28 Lyttelton and Timaru .. 85,519 73,815 Dunedin .. 63,616 43,156 Bluff .. .. 28,190 22,039 — 177,325 139,010 139,010 Decrease for 1927-28 38,315 —Cheese.— 1926-27 1927-28 Lyttelton and Timaru 36,327 26,378 Dunedin .. 25,966 27,861 Bluff .. .. .. ... ... 149,699 142,918 201,992 - 197,157 197,157

Butter. Cheese. 1927 1926 1927 1926 per cwt per cwt per cwt per cwt May 1 93/June 5 93/July 3 91/August 7 .. 88/September 4 86/October 2 86/November 6 87/December 4 94/1928 1927 1928 1927 per cwt per cwt per cwt per cwt January 8 94/February 5 94/March 7 .. 88/April 9 .. .. 98/76/-

BLUFF. —Butter.— Total 1927. Date Steamer Creamery Whey Boxes. June 7—Cumberland 657 7 664 June 23—Pt. Hardy 1104 6 1110 July 8—Huntingdon 240 — 240 Oct. 25—Kia Ora 445 2 447 Nov. 3—Pt. Darwin 153 5 158 Nov. 28—Pt. Hardy 2455 13 2468 Dec. 10— Mahia 1031 4 1035 Dec. 15—Ionic 2299 24 2323 Dec. 20—Pt. Denison 1023 33 1056 1928. Jan. 5—Tairoa 1941 12 1953 Jan. 19—Northumberland .. 1897 23 1920 Jan. 25—Pt. Caroline .. .. 1618 52 1670 Feb. 10—Huntingdon 1869 107 1976 March 21—Argyllshire .. .. 3768 294 4062 April 3—Piako 1726 241 1967 Total 22,226 823 23,049 —Cheese.— Shipped to Date. Steamer Total Crates Australia 1927. April 29—Kaikorai 17 17 May 11—Karetu 157 157 May 25—Tongariro 16,401 May 25—Moeraki 150 150 June 2—Arawa 4,979 June 7—Cumberland 5,446 June 8—Karetu 66 66 June 9—Moeraki 230 230 June 23—Pt. Hardy 10,155 July 7—Moeraki 452 452 July 8—Huntingdon 11,768 July 11—Karetu 50 50 July 19—Matakana 5 July 21—Ionic 576 July 29—Waitemata 272 272 Aug. 16—Manuka 113 113 Aug. 18—Karetu 11 11 Aug. 29—Manuka 454 454 Aug. 30—Pt. Caroline .. .... 239 Sept. 27—Manuka 67 67 Oct. 25—Kia Ora 2,485 Oct 26—Waikouaiti 44 44 Nov. 3—Pt. Darwin 4,237 Nov. 15—Turakina 1,276 Nov. 28—Pt. Hardy 10,018 Dec. 5—Norfolk 1,503 Dec. 10—Mahia 7,047 Dec. 15 —Ionic 4,039 Dec. 21 —Pt. Denison 7,546 1928. Jan. 5—Tairoa 9,574 Jan. 19—Northumberland .. 10,546 Feb. 11—Huntingdon 6,578 Feb. 11—Mamilius 3,421 Feb. 17— 4,465 March 9—Pt. Hunter 4,683 March 21—Argyllshire 7,337 —— March 31—Pakeha 10,062 April 3 —Herminius 2,402 April 5—Piako 12,355 April 18—Somerset 3,667 Total 164,893 2,083

CHEESE. —Crates Received into Cool Stores.— Lyttelton Bluff Dunedin and Timaru. Year 1926-27 .. 149,699 25,966 26,327 Year 1927-28 .. 142,918 27,861 26,378 Increase for year 1927-28 .. 1,895 61 Decrease for year 1927-28 .. .. 6,781 - SHIPPED. Lyttelton Bluff Dunedin and Timaru. Year 1926-27 .. 135,448 20,367 27,419 Year 1927-28 .. 164,893 34,951 27,305 Increase for year 1927-28 .. 29,445 14,584 Decrease for year 1927-28 .. .. —— 114