THE DAIRY INDUSTRY,

Timaru Herald, Volume CXXXVII, Issue 19750, 17 March 1934, Page 8

THE DAIRY INDUSTRY,

Australian dairy interests have now emerged from the talking stage, in tackling the problems associated with the economic stabilisation of the industry, and definite action is forecasted in the direction of the creation of an organisation designed to achieve the equalisation of produce price levels. Satisfactory arrangements have been made, it is reported this morning, to finance the scheme. “As soon as the necessary agreements have been signed in the various States,” the cable messages indicate, “the scheme will function.” It is proposed to make a levy of Id per lb. on butter production and 2d per lb on cheese. So far as New Zealand is concerned, the efforts to rescue the dairy industry seem to have ended in demands upon the Government for State assistance and the decision to send a delegation to the Homeland to confer with representatives of British producers. It is plain that over-production of butter has become one of the major problems of the day. Even 'in India, drastic changes are proposed in the fiscal policy designed to curtail importations of butter and open the way to the development of the dairy industry in that great country. Every day, however furnishes further proof of the need for reciprocal trade understandings between all parts of the Empire. Sir James Parr, in his capacity of High Commissioner, is interesting himself in the problem. Sir James strongly urges that it ought not to be beyond the wit of British and Oversea statesmanship to evolve an economic policy under which the various interests could be dovetailed into a broad-based scheme which would give a decent living to Empire producers. Some idea of what dairying means to New Zealand was given in the statistics presented to the recently-held dairy conference showing the growth of the industry in New Zealand. It was shown that since the season 1926-27 there had been a steady increase in the number of dairy cows (in milk and dry) in the Dominion. In 1926-27 the number of cows was 1,303,225, and last season the total was 1,845,972. There had also been a corresponding increase in the number of cows milked and a remarkable increase in the total production, due to the rising returns for each cow. The following table gives the number of cows milked and total and average production a cow milked during the last five seasons: rmif? Total Production

Under the impetus of remunerative markets during and since the war, the dairy industry expanded by leaps and bounds in the Dominion; but the producers seem to have lost sight of the importance of maintaining the highest level of quality, in face of more intense competition in the Dominion’s principal market. Denmark for instance now sends 126.000 tons of butter into England compared with 86,T00 tons in 1924, while New Zealand supplies have increased fivefold, and the Soviet has doubled its export to the United Kingdom; indeed, the export of butter from the leading producing countries consigned for the English market has all but doubled in tonnage since 1924. Official statistics disclose the unpleasant fact that this increase in the volume of dairy produce placed on the British market as shown in the following table has seriously lowered the pay-out for butter-fat received at butter, cheese, and dual factories in New

To meet the changed conditions, Sir James Parr has suggested to the Imperial authorities that the New Zealand farmer ought not to be asked to run a dead heat with the foreigner, moreover, the High Commissioner strongly urges closer co-ordination between the Umpire wide interests involved for the purpose of rescuing the producer from the plight into which the difficult economic conditions of the world has thrown the dairying industry and associated actfvties.

milked, production, per cow lb. lb. 1929-30 1,390,000 314,000,000 226 1930-31 .. 1,500,000 322,000,000 215 1931-32 1,582,000 340,000,000 215 1932-33 1,724,000 397,000,000 230 1933-34 1,815,000* 435,000,000* ♦Estimated. 240*

Zealand: Total Pay-out. Pence £ (N.Z. per lb. currency). 1924-25 .. 16.90 14,901,634 1925-26 .. 18.21 15,490,121 1926-27 .. 15.38 14,345,782 1927-28 .. 17.99 17,306,433 1928-29 .. 18.48 19,597,810 1929-30 .. 16.25 19,145,717 1930-31 .. 11.58 14,023,477 1931-32 .. 11.03 13,971,280 1932-33 .. 8.93 13,485,246 1933-34 .. 8.00 13,374,000