23

H.—29

Quantities of Butter and Cheese forwarded to Grading-stores for Grading

The Butter Industry. The phenomenal increase in the production of butter during the season has been the result of a number of operating factors. The number of dairy cows in New Zealand has for years been steadily increasing ; the number of dairy-farmers has also been augmented, this being due, in part, to many returned soldiers selecting dairying as a vocation. It was considered last spring by those in authority in England that there would be a shortage of butter on the Home markets. To encourage production the price paid for our butter by the Imperial Government for the season under review was increased by some 995. per hundredweight over that of the preceding season. The effect was as planned, and from Ist August to 31st March the quantity graded showed an increase of some 88 per cent. Despite some decline in the price of butter on the British market, it is anticipated that next season's production of milk for manufacturing dairy-products will evidence an increase. The comparatively low prices obtaining for wool and meat are inducing a number who have not hitherto been dairying to make arrangements in this direction. Prices which will be offered for next season's produce, are as yet uncertain, and are likely to be influenced by many factors. Russia, which in pre-war days supplied some $0,000 tons of butter to Britain annually, is still off the market. The quantity of butter imported by Britain during 1920 was only about 41-| per cent of the pre-war figures. These factors tend to inspire confidence in the future, but are somewhat offset by the fact that during the war period margarine replaced the shortage of butter and provided a considerable surplus besides. The rate of exchange between the United States of America and other countries has induced a considerable export of butter to the United States from Denmark and the Netherlands, as well as from Argentine and Canada. In 1914 the United States tariff on butter was reduced from 6 cents per pound to 2£ cents. This has continued until this year, but cable advices indicate a movement towards having the 6-cent duty reinstated or increased. It is expected that the effect of such an increase would be to overcome the incentive to export butter to the United States caused by the unequal exchange rates. If this eventuates, such butter as was formerly imported into the United States may in future go to Britain for a market. The interruptions to the manufacturing industries so frequently occurring in Britain during her attempt to get back to normal conditions are, after all, the most potent influence likely to affect prices for dairy-produce next spring. If industry settles down so that the purchasing-power of the people attains a satisfactory condition, it is hoped our dairying industry may avoid the difficulties now being experienced by the meat and wool industries. Quality of Creamery Butter. The flavour of creamery butter has in some of the important dairying districts improved remarkably. The most marked improvement has taken place in a portion of the district served by our largest co-operative dairy company. This company has instituted cream-grading, and linked to this dairy-farm instruction. The first service finds and indicates the faults in the cream supplied, while tho second provides the dairy-farmer with advice as to the best method of overcoming such defects. In the majority of districts the quality has been well maintained, and this despite the many difficulties connected with manufacture, during these abnormal times. Much credit is due to many factory-managers on having attained such satisfactory results. In some instances the quality was not good. Some factories received home-separated cream from suppliers who had not previously sent their cream to a butter-factory, and some of this cream possessed a flavour much below the average. A number of the dairy factories which diverted during the season from cheese to butter did not get into proper running-order for a little time, and this feature accounted for some of tho. lower-scoring butters. Later on a much better butter was received from these factories, and in general the diversion was attended with less low-scoring quality than was anticipated.

Port. Year 1920-21. Butter. C Year 1919-20. Cheese. Butter. Cheese. .uckland risborne few Plymouth .. 'atea Wanganui Wellington lyttelton and Timaru )unedin Sluff Cwt. 360,686 2 5,868 71,038 2 36,830 2 18,633 110,995 3 40,634 20,362 7,0.12 1 Cwt. 256,227 Cwt. 210,611 8,325 38,278 5,898 9,825 48,576 17,942 8,976 Cwt. 211,321 201,394 223,783 15,880 309,098 40,884 49,656 133,376 222,798 280,940 17,840 284,906 31,236 51,120 115,824 Totals .. 672,058 1,2 672,058 1,230,298 348,431 1,215,985