The Cheese Position

Te Aroha News, Volume XXXIII, Issue 15667, 1 September 1915, Page 3

The Cheese Position

(By D. Cl’ddie)

The outstanding feature in connection with the dairy industry of New Zealand during the past decade —and, more particularly, during the latter part of that time —has been

the enormous development in the production of (Cheddar cheese. The extension of this branch of dairying has, in fact, been phenomenal, and what is more, the movement is still going on as briskly as ever. In order to show the rapidity of this development it is necessary only to mention that the export of cheese in the year ended 31st March, 1905, was 82,421 cwt., as compared with an export of 794,779 cwt. for the corresponding period of the year 1914-15. These figures represent an increase of 864 per cent, in a period of ten years. Another idea of what such an immense quantity of cheese represents may be arrived at when it is realised that it has cost the sum of £185,448 to pay the

freight, at id per pound, for the carriage alone of New Zealand cheese to the British market during the last year quoted. It can now be claimed that the cheese exported from this country plays a very important part in furnishing British consumers with their supply for eight or nine months in the year. That the New Zealand output is now a big factor towards regulating the value of cheese on the Home markets goes without saying. The number of cheese factories in

the Dominion has risen to 327, no fewer than 26 having been added to the total during the ye ir. As the result of the profitable nature of the erection for the coming season, the majority of these being provided by dairy companies that have previously been engaged in the manufacture of butter. It is estimated that from 33 to 40 such changes to cheesenaking will be made within the next few months. Just how long it will prove to be an economic advantage to continue this change of policy in favour of the manufacture of cheese it is impossible to say, but the wisdom ot

carrying it a great deal further may well be questioned. Some of those who have closely studied the situation have expressed the opinion that in the not-distant future the prod c-

tion of cheese will be overd lie. . These people may be right ; but who | can tell with any degree of certainty, what the actual position in regard to the value of cheese will be even a j year hence. At the same time it can hardly be expected that the wide margin of difference in the relative values of cheese and butter will continue for very much longer. It stands to reason that any two products which are both made from the same raw material cannot be sold indefinitely at prices which show such a wide variation. In the meantime, how-

ever, those who are now entering into the cheese business are likely to secure a share of the extra profits, for there is every indication of high prices being obtained for at least several seasons to come. The only immediate danger in connection with our cheese industry

appears to be in allowing the quality of the article to fall off ; but so long as every effort is made lo improve the flavour as well as the make of the cheese, the producers in New Zealand can depend upon receiving its highest market value. Only in this way can the producer bring to bear influence upon the prices for their product. The rest may, speaking generally, safely be left to the law of supply and demand.