DAIRY PRODUCE YEAR.

Waikato Times, Volume 116, Issue 19463, 31 December 1934, Page 9

DAIRY PRODUCE YEAR.

THE INDUSTRY REVIEWED.

AN EVENTFUL PERIOD. NEW. METHODS OF 'CONTROL. HIGH EXCHANGE BENEFITS. It has been truly an eventful year in the dairy world’ and a brief survey must necessarily touch only the fringe of the subject, a subject of vital importance to the welfare of the Dominion and the Waikato in particular. The fact which emerges prominently is that little improvement has been recorded in dairy produce prices, although prospects at the close of 1934 are brighter than they have been for some years.

Throughout the calendar year New Zealand butter has averaged about 70s per cwt on the' London market, rising fearly in November to the highest figure of 82s. Towards the end of the year values were again higher, synchronising significantly enough with the decision of the German Government to purchase greater quantities of butter. Ghpese prices ranged about 44s per cwt and were fairly steady during the period under review.

Favourable conditions in the early spring gave a wealth of feed and . a • very substantial increase in production was recorded. During, the balance of Hie season, although here and there dry spells were experienced, conditions'in the main were satisfactory and production kept up until the last few months when the falling-off was more rapid than usual. With butter the average grade was slightly higher and reports of New Zealand butter received from maiiy parts of the United Kingdom indicated that quality had been greatly improved. Most butters were made from daily delivered cream with a small percentage of starter used. The year saw a notable advance in the sale of our butter In the north of England and the Midlands largely as> s a result of the excellent .propaganda and publicity work of the Dairy Produce Board. Cheese Quality Improves.

The improvement manifested in the quality of New, Zealand cheese in the 1932-33 season was accentuated in the 1933-34 season, the upward trend having been definitely observed by the grading results, the reports of Dairy Division officers and traders in the United Kingdom and the reports of grocers in New Zealand. The grading returns showed an , increase in the percentage of finest clieeso of from 19 to 24. Forty-two per cent of cheese was graded 92 and would have been graded finest had the texture been closer. In other words, had the problem of openness been overcome two-thirds of our cheese would have been graded finest. 1 Important experiments with the object of ascertaining the nature of faults in cheese manufacture _\vere conducted by Government officers at the. New Zealand Co-operative Dairy Company’s Rukuhia factory. Suppliers’ co-operated, and it was foupd that in the milk supply while appliances were of considerable value the •human factor, was still of the greatest importance. In the report of the Division it was stated that the most persistent trouble encountered was slit openness and apart from this no difficulty in producing a sound commercial quality cheese was experienced.

Dairy Research.

Useful work was accomplished at the dairy research institute at Massey Agricultural College where experiments resulted in the timber taint in butter-boxes being, largely eliminated. The questions of openness and starter in cheese were also probed and progress was made ju the control of starters. ’

Undoubtedly the dairy industry came into the limelight more prominently than for years past during the period under review, chief attention having been focussed on the administrative and commercial 1 sides. For ■some years the Dairy Board’s activities had been concentrated chiefly on regulation of shipping and advertising and there had a general demand that it should be invested with wider powers to allow of effective control of the industry. Moreover, there had been general dissatisfaction with the constitution and method of election of the board. The new regulations which came into force on April Jst were accepted in most quarters as a step in the right direction. New .marketing regulations embodying agreements with 'London importers whereby they were allocated consignments by the Dairy Board in. future came into operation on August Ist. The main objective was to avoid speculative buying. (Continued h. next column.)

Quotas and Restrictions, Throughout the year the restriction issue loomed large in the discussions between t‘he representatives of the Government and the producers. Cables which had passed between the Government and the British Government on the matter were read at a large conference of producers’ delegates and members of Cabinet held early in the year. At meetings between the Cabinet and the Dairy Board in -March the former insisted that if the Board could not agree to quantitative restrictions they must devise some other plan to bring relief to dairy farmers. The board’s attitude was that in view of the unsatisfied demand in many countries tariffs and restrictions on foodstuffs were wrong in principle. As a result of pressure by the Government the hoard finally agreed, by a narrow majority, that if eventually no alternative is offering which would improve the current season’s price levels, it must -accept the principle of quantitative restrictions. There was no question (hat an overwhelming majority of dairy farmers was opposed to quotas. ■ The Commission’s Report. On May , 3 the Government announced its decision to set up a Royal 'Commission to enquire into the affairs of the industry. Evidence was taken in all the dairying centres of the Dominion and the Commission reported on October 15, Their recommendations met with a mixed re- ! ceptlon, a large section of leaders in the industry expressing unqualified, disapproval of them. The most con- j tentious proposal, the appointment of j a small council to control agriculture ; generally and possessing powers ex-! eeedi’ng those of the Dairy Board, I was included in legislation, which, j after slight amendment, was passed; in the dying hours of the .session. Further • proposals, including one involving a mortgage coinporalion to relieve farmers’ mortgage liabilities were postponed until the new year. In August (he industry was disturbed over Ihe embargo placed on the export of boneless veal and boner beef but there appeared to he no way of overcoming Ihe necessity for reside lion emphasised by the British , Government. While'.there are those who affirm that l.lic raising of the exchange rate lo 25 per coni has now outlived -its usefulness and is producing a boomerang effect, the plight of dairy fanners wilhoul this premium would have been hopeless -unless, of course, I lie Government had chosen more drastic and' unorlhodox methods of relief such as, for instance, ihe granting of a subsidy. When compared with (lie exchange al par Ihe increased return lo producers as a result of the premium has been approximately fid per lh bill ter fat over the whole period. Towards Ihe end of Ihe year tlu- an- - nun] ward conferences of the Dairy! Board were held al which largo I gatherings of producers discussed llu: now dairy legislation and Ihe Com-i, mission’s report ji Sunn),arising Ihe situation regarding dairy produce in general terms it can he slated that while prospects for ' a rapid rise in prices shortly are mil. j bright, Ihe level of values overseas is ; unlikely lo fall lower and Ihe recent j increase itj Continental orders can ho viewed as dislinclly encouraging. !