AN OPEN LETTER TO THE DAIRY FARMERS OF WESTLAND

Hokitika Guardian, 21 June 1930, Page 2

AN OPEN LETTER TO THE DAIRY FARMERS OF WESTLAND

.(Contributed.)

Foreword: Extract from British Trade Review of .1929

Mr' Dairyman,—Heading the foregoing one mint ,/he struck with the fact that 'the British manufacturer Inis realised the necessity of applying the first la-w of civilisation—soil-pre-servation.

Tlie condition ol dairy farming in this province, and the prospective outlook for the immediate and more di.iLa.ii/.i future, suggest that it will 1 -rol.-aJ>ly he of advantage to do some little thinking in your own and families’ interests.

Butter-fat prices are now down, for the London price is touching very low figures," and a scale never seriously

non Lem plated. This is how the New Zealand L'cP'fiTvmeho ut ffndiistries viewed the matter at the end of 1929: “As far as prices are concerned during the past quarter, the principal feature that has been exhibited is a con tin ik.U downward trend in regard to both butter and cheese Depression in trade generally wit. consequent restriction in the purchm ing power of the public, appears t be the principal latter that is ai footing the prices of daily produi and of the majority of other primal - : products. In addition heavy production of dairy produce in other couu tries also probably affects the situation to some extent.”

i .ie iDuve covered a review as a. 31st December, when prices for butter bad dropped froni September 271. to December 27th from 184 s to 162 s per (wt; and for cheese; over 1 the same peiod, from 9,1 sto 90s. Prices have fallen seriously since, and a cable message indicated that “the market was 'demoralised,” and prices would fall lower still. At the time of writing the Home market quotes 118 s to 12(n a staggering low price, equal ti about lid per lb. F. 0.8. The Department of Industries believes that the trade depression is tire principal [actor ipi lowering prices, li this be so, the future does not primi.se well, for the trade depression is becoming accentuated. The Department of Industries re- . fers also to the heavy, production ol dairy produce in.other countries,- and that is likely to increase. Prime Minister Scull in of Australia., was heard over the ,air recently to advise the dairy farmers of Jus groat country (••ti? sell overseas every box of butter i they could to assist in helping the country’s credit at Home. If advice is followed more of the commodity will be rushed on the market, despite the considerable, stocks held, and low level prices must continue. This apart from what other countries mav he doing in increasing their output. For the five months ended December, New Zealand sent 22,892 tons ol butter to London, but in the same period 12,802 tons were sent also t( Vancouver and Halifax. Had that market not been available, ■ and that extra quantity had gone on the London market, the effect on prices mar be imagined. It lias to be borne in mind also that the produce of butter in New Zealand is increasing enormously. An eminent authority in the North Island has indicated that in about ten years’ time, the butter output of the Dominion aa ill be doubled. How is this huge increase to be disposed of profitably when the present output finds a difficulty in reaching a ready market at profitable prices?

If it be price the supplier seeks foi Ins capital and labour tljen there is only one way to go about it—work for and advocate Centralisation. I hen with that great step achieved, the management can turn its attention to marketing. These are the days of business Slogans, “Eat Westland Butter,” and “Buy Westland Cl ■earn,” should be loyally adopted by all pat, notic W estlanders The home coin sumption market must be a large one, and with a good uniform article sure, Lv it can be captured, and prove the foundation for a more lucrative local business

Much more might be written in tli e endeavour to impress the readei with tlie obvious facts that the produce is growing rapidly and' the markets are not absorbing the commodity in sympathy. More modern methods of farming are giving better results, and this continued, means more ami more produce. The point foi consideration at this grave juncture, is how to improve the returns to the daily farmer for his capital and labour in the industry'?

Next, there is the disposal of 'the surplus manufactures, and operated through a central management, there need be no occasion . for price cutting, but a payable price secured for the benefit of all concerned, and with adequate cool storage this should not be a remote possibility. r l he economies in production under Centralisation, togetner with the ad•.•si'Utage of large scale selling, and ■ -he 1 anilities to serve the home marset hero with a first class article, ihould result in an all round improvenent governing the returns to- the hard working dairy-farmer. These are thoughts hurriedly by committed to paper as they come to- mind, and if after conning them over, the lairy farmers of Westland agree to uect in conference to discuss the possibilities of Centralisation, 1 am sure it will be a step in the right direction, uul the most assured way of improving dairying returns, and giving the dairy-farmers a brighter outlook a,s to the future than is now possible and evidently not at all probable. Mr Dairymen:—-Think this oyer, rt’s worth your while. (fginta.se. lin-cne

In the loreward it was mentioned that the British manufacturer was awakening to the condition of affairs "•hich he had to meet regarding his business and income. Should not the Dairy-farmers he equally alert to tin situation they are facing, and which according to all appearances', is going to become more difficult, than easier. There are matters of manufacture ami marketing which sc-em to call for nuijor ji t tout ion ji l tins juncture. The experience of the North Mane! snows that the days of the small co-

operative dairy factory are past. In Its day the co-operative- factory did splendid work in pioneering the industry. In those times prices from every point of view were on a different level. The mark (it Was altogether

different. Access and transport were likewise entirely different propositions to the present times. The whole as-

pect is changed and there are new

conditions. This complete change calls for a fresh review of the situation. The point'now is that by fusion it has been shown manufacturing costs can be reduced greatly. That is an essential view point when prices lor tne manufactured article have fallen to a price doubtfully favourable with the several small factories. I lie manufacturing costs can be reduced, because motor and rail trails-

“Tlie year lias been characterised among other factors, by an awakening on tlq> pijrt of the leading Britnsb manufacturers to the necessity of combination in order not only effectively to supply tlie home market, but to meet more successfully the keen competition which now prevails in the leading markets of the world.”

port provide facilities which did not exist when thc small factories for a limited area were inaugurated in WcsHuud. The separator, of course, lias been, a great factor xo permit of

cheaper and longer transport, and there is remarkable evidence on this point in tlie district. Cream can be transported 100 miles to a central factory, and in that transport the motor van may pass three or four small factories operating by thc way.

The possibilities in regard to Jong distance transport are not a matter in speculation. The dairy-farmer can nave complete assurance on that point, factories ill other parts aro carrying cream three tulles the mileage ncc-essii-iy for Westland.

Tlielli given the arrival of the cream at a central point over the radius possible by load and rail m Westland, the elimination of all the overhead ••■hargos by the several small factories .o produce the same quantity of manu.actured butter at a central depot is >bviou«.

The Westland farmers, under, prelent conditions, are servicing- •seven (dories namely, Kmnura, Arahura’, •Vostland, Kokatahi, Waitaha. 'lnter-' •Yanganui and Wataroa, with a-supply f cream to produce, according to BaJ•d'.ce Sheets, 550 tons of butter. Such m output is quite a small amount for ■my -one of the many factories elseviiere. .Now, Mr Dairymen, when you think of the seven factories, with seven Managers, seven Secretaries, seven sets of Assistants,'seven Boards of Directors, seven separate transport c-ol-'ecting lorries, depreciation, interest, >o say nothing of tue serious loss by oinpetinou on local sales of butter—' •uroly must convey, in but a moment’s cons, deration, Via tremendous saving to be effected in concentration. One accredited authority estmutes the t loss by twopence per pound of butterfat The average farmer in Westland .milks about thirty cows, and, taking the production per cow, the loss is equal to about £6O per annum per supplier. A very conservative estimate slioavs the annual unnecessary expenditure to oe about £4,500. Totalling the amount for the last six under which Centralisation should lijive. i been adopted, give« an amount of £27,000 as having been lost to the Westland farmers This sum would have paid tor the several factories, times over. It should be well’ known by now that under the Centralisation Scheme, all Factory Shares Avould be pooled and issued in the new scheme obviating any loss so far as Shareholders in general are concerned, and it would then be opportune to take over dry shares and issue to Suppliers only. There can be no question as to the fairness of the foregoing .with resultant greater cooperative benefits to the farmers themselves