THE DAIRY INDUSTRY

Taranaki Daily News, 2 June 1916, Page 3

THE DAIRY INDUSTRY

REVIEW OF THE YEAR. BY THE NATIONAL DAIRY ASSOCIATION. In the course of its annual report the National Dairy Association of New Zealand states:— In taking a retrospective view of the season's operations, the outstanding features may be divided under three main heads, viz.: (!) The unusual condition of the season itself as compared with previous years; (2) the unprecedented circumstances under which the work was begun, 'ontinued and practically completed; (3) the abnormal results attained notwithstanding the difficulties to be overcome.

1 Generally speaking, the season began early and has been remarkable throughout. The rainfall to the end of the year 1915 was ample for the promotion of growth. Naturally under such conditions feed was abundant, but somewhat lacking in ibody owing to the insufficiency of sunshine. Consequently milk was received in excess quantities as compared with previous year?, and the maximum was reached earlier than usual. Favorable climatic conditions were maintained until the beginning of 1016. During February and March, for a period of six to eight weeks, the temperature ranged at a much higher level than usually- experienced, and in some districts the rainfall was light, and in others ceased altogether. The portions of the North Island that suffered more or less severely in this respect were the Wairarapa, the coast line from Palmerston North towards Wellington, parts of North Taranaki, and portion of the coast line south of New Plymouth. In these dairying centres the pastures withered, and the milk supply declined rapidly. With these exceptions, however, the rainfall has been plentiful for stimulating growth and feed abnndant. The year .has been on the whole favorable to the pastoral and dairying interests except in certain areas of the South Island. |

OVERSEAS TRANSPORT. In connection with the overseas transport of dairy produce during the past season it has been unsatisfactory, owing primarily to the shortage of tonnage and the irregularity of steamers' departures These factors have been common to all the export products of the Dominion Whilst it has to be admitted that the New Zealand Overseas Shipowners' Committee have done their best with the steamers placed at their disposal by the London Tonnage Committee, it is evident that the requirements of the trade, both inward and outward, demand an increased number of steamers. It is obvious that as the volume of the Dominion's production yearly develop, it becomes necessary that the facilities for ocean transport should be proportionately increased. Unfortunately for all concerned, this is not the prospect at present in view Should the existing Continental struggle continue for a further period of twelve months, the difficulties of the coming season as to shipment will not be diminished, but will become greater. Therefore it is well for those engaged in the dairy industry to be prepared for such a contingency, At the same time, it has to be remembered that even if producers have suffered disappointment and financial loss, especially with regard to cheese, through fcongestion and delayed shipments, it is matter for congratulation that trade has been maintained, iand v the quantity shipped so large. Taking 1 into consideration the exceptional circumstances under which the work of arranging shipments has been carried through diiring 1915-16, the executive desire to express their appreciation of the consideration and assistance shown •by members and shippers throughout the year.

INCREASED FREIGHT CHARGES. The tonnage question has had a serious effect in the high rates now ruling for ocean freights. It will lie in the recollection of members that soon after the outbreak of war the contract with the Association was practically suspended. Immediately the refrigerating space on the ocean steamers was requisitioned by the Imperial Government the rate on butter was increased from 2s (id per box to 3s, and cheese\from a halfpenny per pound to three-farthings. Representations made by your executive in connection with the latter resulted in tli-e rate being reduced to 11-lfiths of a penny per pound. There were reasonable grounds for believing that no further charge would be made during the war period. However, early in the shipping season the Association, was notified <by the New Zealand Shipowners' Overseas Committee, acting under instructions from the London Tonnage Committee, that buttei rates would be advanced to 3s 9d per box. No doubt the English Board of Trade were induced to authorise the rise through the influence pf dairy produce shippers in the Commonwealth. The New Zealand rates prior to the last advance were more favoralile to shippers by Is Cd to Is ftd per cwt on butter than they were in Australia, and Dominion producers were accordingly forced into line with other producers in the Empire. In connection with the freight advances on dairy produce which affect producers, there are also other heavy indirect increases on imported goods. All factory requisites that have to be imported for the coming season will be subject to increased charges and on such lines freight has advanced from 100 to 500 per cent, in excess of normal rates.

CHEESE REQUISITIONED. ' It is desirable to place on record the facts of the new departure made by the Imperial Government during the past season by the purchase of 15,000 tons of Dominion cheese. During the latter week in August the Dominion National Government was instructed through his Excellency the Governor to arrange a voluntary purchase on account of the Imperial War Office of fiOOO tons of New Zealand cheese at (i',<.d per lib f.o.b. At the request of the Secretary of Agriculture, the North and South Island Associations arranged to convene meetings at the following centres: Hawera, Invcrcar-_ gill, Carterton, iPalmerston North and Auckland, to consider the proposal. The Hawera meeting was held on Thursday, September 9, 1915, when after full discussion it w r as decided by resolution to sell at 7d per lb f.o.b. The delegates who met at Tnvercargill and Carterton endorsed tlie Hawera decision. The sale \ftis not effected. Then during the last week in October negotiations were renewed by the Imperial War Office through the same source authorising the Dominion National Government to requisition 15,000 tons of New Zealand cheese for Imperial war purposes, limiting the price to 7'4d per lb f.o.b. In -'• rgrdance with the provisions of the

War Regulations Amendment Act, 1915, every cheese factory in New Zealand was requested to supply a specific quantity based on the annual output, at the price stated above. The important point of this compulsory sale is that cheese having advanced in value as between September !) and October 31, l!)If>, tlie limit of t %d was given, when considering the power vested in the National Government they might have taken the cheese at the original price of 7d, fixed ill September, or at any value between that so fixed and the limit given.

QUALITY. On the question of quality the butter exported has hardly reached the same standard as that of previous seasons. To put the position -briefly, New Zealand is not to-day in comparison with previous years exporting the volume of butter that might be classed as "choicest," Under existing circumstances, this would necessarily follow. Many of the butter factories that manufactured tlie whole milk into butter are now making cheese, and those factories had attained an divisible position for their outputs of butter. Consequently the bulk of the Dominion's exportable butter is being made from home-separated ercaro, with the result that'the average standard has not 'been raised. ith regard to cheese, there has 'been during the past season no general improvement in quality as compared with previous years. There is still too much openness and looseness in texture, and a disposition to overcrowd the cheese with moisture. Undesirable llavors have been in evidence. Undoubtedly climatic conditions are responsible in great measure for the delivery of the milk in anything but prime condition dm inir the excessive heat of the last summer." thus causing the defects indicated The quality needs a general levelling up, especially if the Dominion desires to maintain a foremost position in the markets of the United Kingdom. Until New Zealand clicesc establishes a character for uniform and consistent standard, the Dominion must be content to see the Canadian article commanding better prices. D

PRICES. When predicting a year ago 'an abnormal level of prices for 1915-I(l,'' it was hardly anticipated that butter would reach lfiSs or cheese realise 112s. The outstanding feature of the season's operations is the record prices received for butter and cheese in the English markets. Butter opened at from 153 a to 104s for the Rotorua's shipment, and with certain fluctuations quotations during the season reached IGSs. The new season's cheese was quoted at 89s to 90s, and steadily advanced from this figure until the maximum of 112s was reached about May 4. In regard to butter, -tic general upsetting of ordinary trade conditions in various directions is responsible for prosent values to a considerable extent. Undoubtedly the primary cause has been a big shortage in the total annual imports to the United Kingdom, and especially of really fine quality butter. The supply was unequal to the demand, notwithstanding the development and increased sale of the margarine substitute, a serious competitor to genuine butter. To enumerate these conditions briefly will indicate the position. Germany was a buyer of large quantities of Danish, the embargo placed on the export of French butter, the diminished supplies from Siberia owing to transport difficulties, and the decline in exports from the Commonwealth as a result of drought, were all contributing factors in creating an abnormal market. When it is considered that the total quantity imported to the United Kingdom for the twelve months ending April 30, Ifllfl, is 43,000 tons than for the corresponding periods of last year, butter values are understandable. Whilst during the past three year? butter has advanced in value 45 per cent., cheese has risen 80 per cent., and a solution of this problem presents an entirely opposite set of conditions.

CHEESE. At the beginning of our export season in 1915, regarded from the statistical standpoint, it was reasonable to assume that taking into account the large increase in the Canadian output of cheese, and also that from New Zealand, prices would have remained steady. Contrary to all experience, quotations opened high and have continued to soar until values reached 112s. Whilst the total quantity of cheese imported into the United Kingdom is less this year than the corresponding period of the previous year, this decrease is not of sufficient importance to warrant the present position. It cannot be denied that tlie heavy purchases by the Imperial War Office in Canada and New Zealand during 191 a withdrew a large supply from competition. This would necessarily tend to increase values, and if it be taken with other facts, that cheese has no serious competitor as an article of food, that the largely increased purchasing power of the artisan classes throughout, the United Kingdom has enabled tliem to face high prices and to use cheese move than formerly, then there is some reason why expectations have failed to realise possible market value.

| PACKAGES. Goods which have to -be marketed at a distance from the origin of manufacture always command better value? when clean and well packed. The lesson that we need to learn in New 7,en-' land is that "the best is the best," and forcet the axiom that "anything will do." EXPORTS AND STATISTICS. The bulk of the dairy products continue to find a rendy sale in the United Kingdom, notwithstanding, the favorable prospects of extending business with Vancouver and South Africa a few years ago. At least 95 per cent, of the total quantity exported is shipped to London and the West Coast ports of England to supply the market there. Comparing the shipments of butter this year to the United Kingdom with the corresponding period of last year, the former shows an increase of 7.79 per cent, nearly, whilst cheese consignments indicate the satisfactory advance of 23.70 per cent. In making this comparison, however, it has to be borne in mind that from May to August. 1915, inclusive, 80,311 cases of cheese were shipped as against 25,325 cases for the same period in 1914. In the above months a greater quantity of autumn-made cheese was shipped in 1915 than was the case in 1914, so that the year's shipments do not confirm the anticipations of a heavy increase in outputs. The trade with Vancouver during the period now under review is disappointing, and is evidence that the local requirements are being supplied by the Eastern States of Canada, and probably also owing to the development of dairying in the central States of the Dominion a considerable quantity is being sent west. Whilst the New Zealand butter holds tlie premier oosition for duality jrar-

chasers could not compete with London values, this factor, together witji the increased tariff rates and additional freight charges has rendered it exceedingly difficult if not almost impossible to further develop trade in this direction. The South African trade has practically ceased in consequence of the shortage of tonnage as between the Commonwealth and the above country, rendering it impracticable to tranship goods at Sydney. During the year heavy shipments have been made to Australia at remunerative rates.

CHEESE IMPORTED INTO UNITED KINGDOM. The following table gives the total quantity of cheese imported to the United Kingdom during the last three years. The annual period covered is from July 1 to June 30 of the following vears:—

The total quantity imported for the year ending June 30, 1915, from all countries was 131,320 tons, as compared with 11 S,!>o(s tons during' the corresponding period of the previous year, an increase of 12.-114 tons. Canada, Holland, Italy and the United States of America show larger exports, whilst Australia, New Zealand, Switzerland and other countries have decreased. The increase from the States is notable, viz., I3,!):!7 tons. Probably the decrease indicated by the New Zealand figures of 1915 compared with 1014 was due in measure to the congestion in cool stores of the autumn make consequent on the want of shipping accommodation. Between May 12, 1915, and June, 1915, 23,81(1 crates, equal to 1830 tons, were shipped, which under usual conditions would have reached the United Kingdom before the end of June and have increased the annual total.

TOTAL DAIRY PRODUCE IMPORTED INTO UNITED KINGDOM. The following tablet- gives the total quantity in tons of butter imported into United Kingdom for the last three years ending April 30:—:,

The experience gained during the past season in consequence of the excessive heat should stress the importance with all interested in the manufacture of cheese of providing ample accommodation for the cooling and storage of such goods. Much has 'been done to remedy the methods of the past and improve the condition of cheese offered for shipment as compared with previous years. There are still opportunities for radical improvements. Our grading ports need to be up-to-date. Where it is absolutely necessary to have coastal carriage to ports of departure or cool storage the carrying steamers should 'be prepared to carry such goods without detriment and without counteracting the benefits already received from cool storage.

In regard to this important subject of cool storage, it is only fair to record what has been done. Tlie Taranaki Producers' Freezing Company at Moturoa lias almost completed extensive additions to the present building for the purpose. When finished, the storage available lyill be ample for some years to eoine. The West Coast Refrigerating Company at Patea will also have completed at an early date, the extension of the present accommodation for cheese. In connection with the cheese store erected some four years ago by the Wellington Harbor Board at tlie head of the Glasgow wharf, additional space is being provided for at least 25,000 cases. LABOR POSITION. The labor problem during the year has caused factory directors throughout the Dominion considerable anxiety. Many of tlie men |)vho held important positions in factory management and work are now at the front or have enlisted and are preparing loyally to take their full share in the defence of the Empire. Whilst it is the duty of every ablebodied man at this juncture to accept the supreme sacrifice of seeking to help his country, it is also as important that some must do their part with the same object in view of keeping up the volume of the Dominion's exports. Hence if the expert knowledge attained by men in factory work is entirely lost by enlistment it cannot ho replaced immediately. This result will follow, that the article manufactured will depreciate in quality and further development of the industry be delayed for some time. Take, *or instance, the fact apart from the question of enlisting. Last year 58 new cheese factories started operations in New Zealand; suppose they average four employees each, the total is -232. Now the bulk of those working in these new concerns are selected from skilled men of the older business. In view of the general shortage of labor the #acancies thus caused cannot be re-filled. The question is s? important that the 'Prime Minister's attention has been drawn to the necessity of giving this matter careful consideration should new measures of recruiting be adopted.

Canada. X.Z. Australia tons. tons. tons. ions . .. 81,(28 13.152 fi.'S moo . .. 70,402 10.572 1910 . .. 79,001 22.051 207 ion . .. 7-0,457 .20,250 617 ]fll2 . .. 72,090 24,093 93 10) 3 . .. 00,424 29,489 23S 1914 . .. (10.703 33,850 J 007 1015 . .. 02,192 32,515 1048

1014 1015 lfllG 'Denmark ... 37,500 85.000 5S.OOO Siberia 40,500 -28,000 48.000 Sweden 17,300 10.000 4,000 France ...... 12,000 lfi.OOO 15,000 Australia .., 2(1,750 32.000 8,000 New Zealand 16,000 17,000 17,000 Other countries 11,000 17,000 12,000 The cheese imports for the same periods jis above are as follows:— 1914 1015 1916 Canada 02,000 00,000 07,000 New Zealand 34,250 30,000 29,000 Other countries .... 23,500 32,000 28,000 COOL STORAGE.