DAIRY EXPORT

Waikato Times, Volume 127, Issue 21157, 5 July 1940, Page 9

DAIRY EXPORT

SEASON’S ACTIVITY VALUE HIGHER BY £451,748 2.98 PER CENT LESS QUANTITY (By Telegraph.—Special to Times) WELLINGTON, Thursday “It is seldom that New Zealand experiences two unfavourable dairying seasons in succession, but in most dairying districts throughout the Dominion both 1938-39 and 1939-40 were climatically unfavourable to production,” states the Director of the Dairy Division, Department of Agriculture, Mr W. M. Singleton, in the departmental report tabled in the House of Representatives, today. “In the North Island ths very serious shortage of feed for dairy cattle which resulted from the dry weather in the closing months of 1938-39 season brought about a considerable reduction in the output at that period. As a consequence the amount of winter feed saved was considerably reduced, and such small stocks as could be saved had to be used in the autumn months, so that many dairyfarmers found themselves with insufficient reserves to carry stock over the winter. As a result there was a heavy mortality among dairy cows in the North Auckland-Bay of Plenty and Poverty Bay districts, and to a lesser extent in other areas also. “In some areas a prolific growth of clover in the spring also added to the number of deaths of dairy cows, up to 10 per cent of the cows being lost in some herds. As a consequence of these losses production was affected over the whole season. It was not until about December that weather conditions were favourable, and until January output showed a reduction in comparison with the corresponding period of the previous season. The good rainfall experienced in most dairying districts in December, 1939, however, resulted in an exceptionally heavy growth of grass, and it is many years since such favourable conditions for production have been experienced during the late months of the financial year.” Quantities Graded for Export The report states that in terms of butterfat the quantity of butter and cheese graded for export during the year ended March 31, 1940, showed a decrease of 4176 tons, or 2.98 per cent, over the total butterfat represented in butter and cheese graded during the preceding financial year. Creamery butter received for grading during the year under review amounted to 123,277 tons, and cheese 86.486 tons, as compared with 129,277 tons butter and 84,236 tons cheese for 1938-39, a decrease of 6050 tons butter (4.G7 per cent) and an increase of 2250 tons cheese (2.67 per cent). The increased production of cheese may be accounted for by the diversion of five factories from the manufacture of butter and casein to the manufacture of cheese. This change was prompted by the poor demand for casein and the low prices offering. Of the total amount of butter received for grading, 92,131 tons was produced in the Auckland province, as against 92,501 tons during the previous year a decrease of 370 tons. Export Values Higher Including all dairy produce—butter, cheese, dried milk, sugar-of-milk, condensed milk, and cream—and basing export values on Customs figures, there was an increase of £451,748 in the value of this year’s dairy produce, the total values for the two financial years 1939-40 and 193839 being £22,907,700 and £22,455,952 respectively. Customs values are based on realisation values. The increase in total value in the face of a decrease in total quantity exported was due solely to the influence of the war. Until the end of August, 1939, prices on the Home market for both butter and cheese were lower than for the corresponding period of the previous financial year. The war, however, brought a change in the tone of the market, while the British Government’s purchase price for both butter and cheese was at a level considerably higher than the level of prices ruling for the past two or three years. Quality of Butter “The principal faults connected with butter quality may be traced to feed conditions,” the director remarks. “While feed flavour was very prevalent in the Auckland province and to a certain extent in other districts during the early months of the season, it is probable that the quality for the later months has never been on a higher average level. Nevertheless, the improvement came too late to quite correct the falling-off in average grade in the early part of the season, with the result that the average grade for the financial year barely maintained that of the previous 12 months. “The average grade of butter graded for export during the year ended March 31, 1940, was 93 , .361 points, compared with 93.373 points for 1938-39. Of the 123,349 tons of butter received for grading, 100,175 tons, or 81.21 per cent, was classed as finest, 22,521 tons, or 18.25 per cent, as first grade, and 653 tons, or 0.53 per cent, under first grade. Cheese Quantities Particulars of cheese sent forward for grading during the year under review, figures for the previous year being given in parentheses, are as follows:—Total quantity received, 86.486 tons (84,236), of which 14,755 tons (14,672), or 17.06 per cent (17.41), was graded as finest; 68,608 tons (67.080), or 79.32 per cent (79.64), as first; and 3123 tons (2484), or 3.61 per cent (2.94), below first. The average of all cheese graded was 92.065 points, as compared with 92.133 points for the year ended March 31, 1939. Cheese quality did not reach the same high standard during the early months of the season as during the previous year, although, as with butter, an improvement was shown ai the season advanced. A contributing factor in both butter and cheese quality was the cool nights experij cnced, and in the case of cheese the

comparative freedom from starter difficulties. Casein Falls Away There has been little change in the market for casein, with the result that only small quantities are being manufactured, although exports have shown an increase over last year. Gradings during the past year amounted to 177 tons, of which 112 tons was graded at Wanganui and 64 tons at Auckland. The previousyear’s total was 189 tons. The grading of casein, however, is not compulsory, so that grading figures provide no indication of production. Customs returns give the quantities exported during the past three years as 2270 tons, 1626 tons, and 3203 tons. Values were £86,581, £71,651, and £215,133. Butterfat Short-credited Discussing short-crediting of butterfat to suppliers of some dairy companies, Mr Singleton states that efforts have been made during previous years to reduce this method of injustice and unfair competition by bringing in regulations requiring certain procedure in. the weighing and testing of milk and cream at manufacturing dairies. That unfair methods still persist at some manufacturing dairies is evidenced by the testing of butter and cheese for butterfat at the various grading stores. From the butterfat recovered in the butter and cheese an estimate of the minimum number of pounds which should have been credited to the suppliers can be arrived at. A method whereby dairy companies giving marked short credits would have to adjust their figures as appearing in their annual reports j was brought before the National Dairy Federation’s conference in I June, 1939, by the Director of the I' Dairy Division and is now under survey by the Dairy Industry Council. The giving effect to the sug- ■ gestion would cause these dairy comj panies to add the estimated short j credits to the butterfat credited to the suppliers for the year and use this total when figuring their yield of butter or cheese as per pound of butterfat, and also use the same total pounds of butterfat when figuring the j price paid for butterfat for the financial year. This should eliminate I some of the unfair competition as I between dairy companies. It cannot, however, be brought into operation without legislation.