THE DAIRY INDUSTRY

Taranaki Daily News, 2 September 1933, Page 11

THE DAIRY INDUSTRY

PAST SEASON REVIEWED RECORD PRODUCTION YEAR. CONTROVERSY OVER QUOTA. • BOARD DEFENDS ITS STAND. “The great need in this Dominion is to have the quality so high and the cost of production so low that the complete quantity which is produced can be marketed on a satisfactory basis,” says the report of the New Zealand Dairy Produce Board for the year ended July 31, 1933. “A record season for production has been experienced,” says the report. “With the exception of Wairarapa and portion of the South Island everything has been favourable for an increase. Conditions for the previous; year were unfavourable, and, in spite of an increase in the number of cows and the applica-. tion of greater quantities of fertilisers, the increased production of but-ter-fat for 1931-32 was only a little over 5 per cent. “Thus, given a favourable season, all conditions were set for more than a normal increase in the 1932.-33 season. Expectations in this direction were fully realised, and an increase was recorded of 23,588 tons of butter and 12,804 tons of cheese, making the total production for the year 127,799 tons of butter and 100,998 tons of cheese, the combined total being 228,797 tons. Or. a butter-fat basis the increase for the 12 months was 20.35 per cent.” CANADA SHUTS OUT BUTTER. In a lengthy discussion on the question of markets, the report recalls that a year ago a comprehensive review was given of the quotas and restrictions which Had been imposed on dairy products by various countries. There had been, no subsequent easement in that position, but rather the reverse. For instance, the New Zealand-Canadian Treaty, which, it was hoped, would encourage shipments of butter to that Dominion, had proved to be of little value, as .it contained a provision permitting tire Canadian Government to practically prohibit export from New Zealand when it considered there was sufficient Canadian butter to supply the local requirements. That condition became operative during the season which had just closed. After reviewing the results of the Ottawa Conference, by which the United Kingdom imposed duties against foreign dairy produce, the report states the board strongly supported the action of Mr. W. Goodfellow, on his return from Ottawa, in urging the necessity of immediate action along the line of reduced tariffs on British goods entering the Dominion. The new duties imposed by Britain on foreign products became operative on November 16. 1932. The report recalls that a request was made by the British Minister of Agriculture, Major Walter Eliott, for the application by agreement of quantitative restrictions on imports of butter fiom New Zealand and Australia on the understanding that if an agreement was reached power would' be taken to restrict foreign butter on the basis of two tons for every one ton from the Dominions. Early in the negotiations it was made clear to the board that if the restrictions were adopted in connection with butter they would also become applicable to cheese. AGAINST RESTRICTIONS. The board advised that it could not agree to restrictions, but offered to reduce shipments in March, Apiil and May by IGOO tons a month, provided Australia and foreign countries did likewise, That was not acceptable to the British Government.

“Cables were exchanged over a period of some weeks,” says the report, “but the board adhered to its decision, realising that to reduce exports meant a restriction in production, as no market for the surplus is in sight. Further, the board could see no alternative class of farming or other method of making a living to which the dairyfarmer could turn. In its consideration of this problem the board is very definitely conscious of the seriousness of the position, but in its opinion the difficulty cannot be solved by the application of further quotas.”' It is mentioned that in April New Zealand butter prices fell to the unprecedented low figure of 65s a cwt for both salted and unsalted on the London market, while cheese prices fell to 375. The question of restrictions had been given considerable prominence at the World Economic Conferences It was most fortunate that the chairman of the board, Mr. W. A. lorns, was in London at that time, and the board was deeply appreciative of the stand taken ,by the Prime Minister of New Zealand, Mr. Forbes, in making a very clear and definite statement regarding the disastrous effect which the application of restrictions would have on the dairy industry of the Dominion. IMPROVEMENT OF QUALITY. Dealing with margarine, the report says that, assuming the population of the United Kingdom to have remained stationary, the consumption of margarine there was 9.31 b a head in 1932, compared with 10.551 b in 1931, a reduction of 1.251 b, or 11.91 per cent. It was natural, that the magarine interests of the United Kingdom should favour restrictions of the import of dairy produce, as it was obvious the price of margarine would be increased as a result. Notwithstanding the substantial increase in production, the quality of New Zealand butter had been more than maintained. There had been an increase of 2J per cent, in finest grade. To turn out 80 per cent, finest grade in an export of over 120,000 tons was a praiseworthy performance. Criticism of quality had been confined mainly to occasional lines, which had not stood up to the grade score allotted in the Dominion, and to a few lots of unsalted butter showing mould development, f The reports from the United Kingdom relating to New Zealand cheese had been more favourable than for some years, It was admitted there was still considerable room for improvement. Flavours generally left a good deal to be desired. Openness in texture still persisted, although to a lesser extent. Discoloration, while not entirely eliminated, had practically given no trouble FINANCES OF BOARD. The accounts of the board show that the export levy on the butter and cheese exported during the year ended July 31, 1933, yielded £50,758 (last year £40,680). Interest from investmentes amounted to QO5 (£378). making a total income of £50,863 (£41,058). Expenditure totalled £42,329 (£53,158). Included in the total were management expenses for the head office in New Zealand, £5649 (£5873), and for the London office £8373 (£6524). In the past year’s London total was included £3734 for exchange on remittances to London of management and for advertising expenditure. Other items of expenditure totalled £13,044 (£13.548). In addition, £3200 (£3803) was spent on research, and £12,219 (£17,555) on iadvertising New Zealand butter and cheese in Great Britain.