Taranaki Herald. (DAILY EVENING.) WEDNESDAY, JUNE 7, 1911. THE DAIRY INDUSTRY.

Taranaki Herald, Volume LIX, Issue 143519, 7 June 1911, Page 2

Taranaki Herald. (DAILY EVENING.) WEDNESDAY, JUNE 7, 1911. THE DAIRY INDUSTRY.

The dairy industry of New Zealand kas readied a somewhat critical stage in its history. Our hutter and cheese have achieved an excellent reputation on the London market. In fact, according to the annual report of the South Island Dairy Association, a copy of which we have received from the secretary, Mr. J. R. Scott, of Dunedin, New .Zealand choicest butter commands from 4s to 7s per cwt. more than any other colonial butter, while our cheese is running Canadian hard for top place on the market. This being so, it is not to be wondered at thai efforts are constantly being made by dealers in rival countries’ produce to “bear” the New Zealand article. If we may judge by the market reports issued weekly from London, these efforts have succeeded; consequently dairy farmers in New Zealand have not received the real value of their produce. The season, too, has been a dry one, so that altogether factory suppliers have not done too well. They cannot control the seasons, but they may, by an extension of the principle of co-operation which has already served t|iem so well, exercise a greaterVcontrol over the market, and be less at the mercy of the manipulators who, during the past season, made so determined and successful an attempt to depress the value of New Zealand butter. The committee of the South Island Dairy Association has attempted to bring about a sounder system of marketing the produce, but the main difficulty it has had to contend with is that the factories who constitute the membership of the Association are not unanimous on the question of policy. Some favour selling their outputs forward for the season; some monthly auction sales; some consigning on advance without recourse; someconsigning to agents appointed by the Association on open consignment; and some consigning to agents of their own choosing. Others have no particular policy, but sell or consign as may seem to them best, perhaps reversing their policy each year. The committee of the Association is of opinion that better results would he obtained if the factories were to support, with something like unanimity, a policy of concentration in the hands of a few leading firms, such firms to have the control and sale of all consignments, and to fix prices week by week, as is done by Denmark. One of the advantages of such a method of disposal would be that the firms having the handling of New Zealand butter and cheese would be encouraged to advertise, it widely, as has actually been done by Messrs, Mills and Sparrow, one of the National Dairy

Association’s agents in London, during the past season. Prom information, supplied hy the firm’s local representatives, Messrs. E. Griffiths and Co., we gather that at a cost of nearly T3OOO New Zealand butter was advertised in the leading English daily papers and trade journals on February 16, and on the same date about 900 retailers throughout the country made an attractive window display of New Zealand butter in their shops. By this means our produce was brought more prominently' before the notice of the consuming public than it had ever been previously'.- While it is not always safe to associate cause and effect, it is remarkable that, while on the date of the display New Zealand butter was quoted at 106 s and Danish at 1245, a difference of 18s per cwt., from that day forward New Zealand improved in price and Danish declined, until at the beginning of May the difference was only 3s per cwt. Every shilling per cwt. gained means an. increased annual income of £20,000 for Nfew Zealand dairy farmers, so that it will be seen how much they have to gain by systematic advertising. So far as we can gather, the “bearing” of New Zealand butter during the past season has been resorted to by rivals who see in this new policy of the National DairyAssociation a movement which is likely to materially strengthen the position of our produce on the London market. Therefore we say that a critical period has arrived, and the question is whether the producers are going to help the Association to fight their battle by co-operating in the new system, or play into the hands of the “bears” by acting independently. The movement, it appears to us, is an excellent one, though it is essential, we think, that the control of supplies shall not be confined to too few firms. There must be a very powerful combination in London as well as at this end. No individual firm could stand against Tooley Street, perhaps not two or three, but if half a dozen of the best were associated in pushing; the sale of New Zealand butter and cheese they need fear no rivals, so long as the producers at this end were united and loy T al, and sent only the very highest quality. There is plenty of room for expanding the industry at this end, while the market at the other end is practically'limitless if the quality and price are right. The future of the industry will depend largely on what course of action is taken by factories for thh coming season.