STORAGE: USE OR ABUSE

Evening Post, Volume CXII, Issue 59, 7 September 1926, Page 10

STORAGE: USE OR ABUSE

DAIRY BOARD POLICY

SHOULD GO INTO CONSUMPTION

EIGHT WEEKS' STORE LIMIT,

The annual report of the New Zealand Dairy Produce Board, for the year ended 31st July appears ! at au opportune moment, for there are cabled reports to the effect that a portion at any rate of the huge quantity (estimated at 650,000 boxes) of New Zealand butter stored in London for reserve prices (in some cases 180s to 185s) is being forced into the madket at 160s or less. • The question of the use or abuse of storage is therefore well in the limelight, and the board's remarks thereon in its annual report are of special interest. There is a point of time at which storage has a deteriorating effect on butter, though that point of time is hard to fix, as some butters store longer than others. Again, there is a point at which storage of Uutter ceases to be merely regulative of market supplies, and becomes restrictive and price-fixing. Against this latter effect the Imperial Economic Committee ,has reported in strong terms, but here again the borderline is not easy to determine. It has been stated that at least 80 per cent, of the long-stored Now Zealand butter in London is held by factories i for reserve prices.

QUESTIONABLE STORAGE.

The terms in which the board refers to this matter in its annual report aTe quite unambiguous. It says that "the long and indiscriminate storage of supplies by factories and other in-. terests has occasioned considerable anxiety. This, together with the produce being held possibly in questionable storage, has occasioned such reports as have been justified, regarding the decline of our quality. It is important that all produce should go into consumption in the order of its manufacture. ■ -i The reservations of stocks in New Zealand by the board to regulate shipments has not on any occasion been responsible for more than eight weeks' storage, although we know of stocks that have been held by owners or agents for a very much longer period. Tho New Zealand method of manufacture will enable its high quality to be retained for a longer period than will ever be necessary to store it, if it is allowed to go to the market in the order of manufacture." These sentences mean that the board pronounces for the use of storage as a means of flattening out the unavoidable kinks that occur in supply even when shipping is regulated (as referred to lower down); and that in this purely regulative (non-speculative) use of storage the board has not found it necessary on any occasion to store for more | than eight weeks. (In other quarters' storage is said to have reached half a year.)

BOARD ADVISED FACTORIES TO SELL.

The report continues: "The board has advocated steady selling to factories throughout the whole period. Eeservations were made by the board in the matter, of shipments to provide for a fair supply during the British autumn. If supplies are held unduly long by factories it must react against the opening price for new season's arrivals in a few months." The last statement is exemplified by what is happening in London to-day. The next two sentences in the report refer to an "incident" of the British general strike a few months ago, when there was complaint in London that certain reserve holders held out for their reserves instead of making butter available at the official maximum " strike " prices. Factories' price reservations gave indications of a possibly difficult position before the general strike terminated. Its continuance for a few more days would have necessitated an appeal for general release of stocks, or, possibly, a general commandeer. Dealing with shipping and its relation to storage, the report states that last season the board's regulation policy provided for prompt shipment of all produco as it becomes available until the end of November.

ARRIVALS NOT EVEN.

"For December, January, February, and March 9 per cent, of the estimated season's production of butter and 10 per cent., of the cheese were to be shipped with diminishing quantities during the remaining months of the year. These plans were completely upset by the shipping strike towards the end of August. No shipments could be made in September, and only a small quantity in October, with a result that abnormal shipments were made in November. This was necessary fi many reasons, the most important of which may be outlined as follows:—(1) The alarm in London arising from anticipated shortage of stocks; (2) the approaching congestion in our cool stores; (ii) the need to realse shipping that it would be available for return to New Zealand to deal with our peak shipping trade later in the summer, while the general uncertainty of the shipping position made it essential that as much as possible should be dispatched while the opportunity presented itself lest there should be any further suspension. From December onwards steady dispatches were made, as a glance at the table supplied will prove, except that approximately 100,000 boxes .of butter were withdrawn from shipment by owners in April, and subsequently released for dispatch in July, thus disturbing the evenness in dispatch that had been planned. The cheese figures for May were disturbed by the non-dispatch of a vessel listed for that month, which being delayed until early June added to the figures for that month. Such possibilities will be always with us." By a proper use of storage, and by a modification of the tendency of oversea ships to call at too many ports (a tendency that has been criticised in other directions), the board hopes to overcome such difficulties.1 It goes on to say:— "While the advantages to be secured by regulation of shipment are apparent, a comparison of tho table showing shipments with that showing arrivals will prove its inadequacy to effectually deal with the whole problem. The tables sho^' that January, February, March, and April dispatches wore as oven as is ever likely to be possible. Yet tho arrivals during March, April, May,- and June, which is the period the sailings instanced would be expected to arrive, show far from the same evenness. This is accounted for by the difference in speed of the vessels, and the different itineraries they must necessarily follow to give tho servico required by all interests at the many ports around our coast.

TOO MANY PORTS OF CALL.

A policy is being developed by the shipping companies of making as few port calls with each steamer, as p6ssible, but instances of abnormal time around our coast will doubtless continue

at least for the present, especially in connection with the West of England boats. Innumerable small parcels, especially of meat, having to be picked up, mako this unavoidable. ■ The plans laid for the coming season provide for the prompt dispatch of all produce as available until about 6th November, which should all be delivered in time for the Christmas market. Prom thence onward, regulation will be made. It is tentatively.estimated that the dispatch during November, December, January, February, March, and April will be 250,000 boxes of butter and 110,000 crates of cheese. close contact has been kept with the shipping companies, who have made every effort to meet our requirements. Disabilities arising from out of date refrigerator systems have been kept constantly under their notice. Although the shipping inspection staff is not sufficient to keep in touch with all load- I ings at all ports, it has been sufficient to have all boats tabulated and kept under, surveillance. The principal present need for our requirements is a cold air system for the carriage of cheese. It was with this matter mainly in view that Mr. Grainger, the board's •shipping supervisor, was sent to London to consult the refrigeration advisers of the shipping companies." ■ Storage on the whole in Now Zealand has been satisfactory, although several of the works had insufficient space to enable them to reduce the temperatures with sufficient rapidity owing to the increased quantities held in cold storage here. "Steps are being taken to rectify this in readiness for next season. Storage costs here are cheaper than in London, so the utilisation of New Zealand cold storage serves a double purpose, providing the work is efficient. There has been room for question as to the efficiency of some of the London storages. Hays Wharf Co., who provide the major portion of storage for dairy produce, recently increased their accommodation considerably. This should be satisfactory, but the large quantities of produce held in cold storage in London by rarious interests have necessitated the use of numerous cool stores, some of which prompt a suspicion of inefficiency. The board, therefore, dispatched its shipping supervisor to London at the beginning of June to investigate these and other matters requiring attention in London during our slack season.