DAIRYING REVIEW.

Hauraki Plains Gazette, Volume XXXIII, Issue 4458, 25 August 1922, Page 1

DAIRYING REVIEW.

INDUSTRY’S POSSIBILITIES'ADVANCEMENT IN DOMINION. ’ MR. GOODFELLOW’S OPINION. An extremely interesting review (if the dairy industry was given at the N.Z. Co-operative Dairy Company’s annual meeting at the Town Hall, Hamilton, on Wednesday, by the managing director, Mr W. Goodfellow, who, while commenting on the Dominion’s increase in production, expressed his convictions regarding the quality of New Zealand’s produce and that of other countries. The quality of the New Zealand butter was the finest in the world. Mr Goodfellow said there had been a phenomenal increase in production which had not been confined to his copipany alone. The figures for the season were: New Zealand 50,000 tons of butter; Auckland province, 27,460 tons of butter; New Zealand Dairy Company, 18 270 tons. In cheese there had been a slight shrinkage. New Zealand had produced 63,000 tons of cheese, the Auckland province 10.000 tons, and his company 4',691 tons. The total value of butter-fat, had shrunk to h;alfl of what it was the previous year. The grading had shown 74 per cent, to be superfine and 7% per cent, second grade. The grading had been below the Dominion average, which was 91.57 and’that of; the Auckland province was 91.,54, the being 91.54. There was more room for improvement in cheese than in the manufacture of butter. The company had 13 butter factories ,15 casein factories, and 3 Glaxo factories.' Railage, he said, was a heavy item. Whereas a few years ago the freight per ton of butter and cheese from Frankton to Auckland was 13/8 it was now 34/5. A Voice: The railways are losing £looo' per day. Mr Goodfellow: Not on dairy produce. Concerning the box making department, Mr Goodfellow said by importing 100,000 boxes they would be further able 'to reduce the price of containers during the coming season. The development work for the mines was proceeding rapidly, and if the Public Works Department would expedite its Work the company could get the coal out. The company was not satisfied with the department’s progress. The company, however, would push the .affair through; ‘he price they were at present paying for coal was top great. In connection with wages, he said he had heard a lot of talk about high wages. He z maintained that, the semi-skilled man in New Zealand was higher paid than in any part ofl the world, but the highly skilled man was the lowest paid than anywhere in the world. (Murmurs of incredibility and a voice, "How about the cocky ?”) In 1921, continued Mr Goodfellow, it cost £3 5s 9d in wages to make a ton of butter,, and a few years-ago it cost £1 16s 5d in wages to make .a ton of butter.

In connection with butter payments the speaker said it had been indicated that the final'payment would be between Is 3d and Is 4d, but since then the market had improved, and it had then been thought the payment would be Is 5d to Is 6d, but owing to the unexpected collapse of the German exchange the price of butter had gone down. If the price had remained stable the company would have' been able to pay out an additional Id per lb.

A 1 PLOT. He stated that there had been a campaign of detraction round the Company’s district. They had. complete evidence of a campaign, but owing? to the loyalty of the persons approached the company had been able to take steps to completely turn the tables. Included in the, campaign was* a scheme to establish smal.l factories right through' the southern part 6f the province. It was also endeavoured to get the speaker out of the managing directorship of the company. Until recently they had no compete tion, hut apparently there would oe as keen a competition ,as in the past. There were two opposition companies about to start operations in the district. One of the companies had been systematically canvassing the Franklin districts for the past 10 years, but his .company had more than held its own, . NEW ZEALAND’S STANDARD. In connection with his visit to England he said it was desirable to overhaul the marketing conditions, and he had been sent to investigate the system. On his way over he toured California, where he went through the finest milk factories. He had found New Zealand had nothing to learn so far as its dairy machinery went, al.though he had seen a machine flor do-

ing up butter into lib pats.. Generally speaking, the quality of butter in the States was poor, and about 90 per cent, of it would in this country be classed as second grade. This was due to the fact that there was keen competition by proprietary companies and no effort was made to improve the quality.

He ajso visited many Danish factories, with which he was disapppinted. They were not as modern as those of New Zealand; neither were they as well equipped. The Danish butter was no better than the New Zealand product, which he considered the finest quality in the world. The Danish article was not so even in quality. This was due to some extent to the Danish system of grading being below that of this country. He had found the Danes generally concerned with the progress New Zealand was making, and were considering setting up a commission to investigate our dairying industry. He had conferred with the Danish committee wfthi a view to establishing a joint pool to fix prices for Danish, Australian, and New Zealand butter on the London market, and they had been agreeable to the undertaking of a joint scheme. MARKETING CONDITIONS. Mr Goodfellow gave details of the apoplntment of Mr J. B. Wright as agent to handle the company’s produce in England. The company was exceedingly gratified with the appointment.

The speaker, while mentioning the pool scheme, launched on his return to the Dominion, and of its failure, said the campaign had had a very educative effect, for the producers were now beginning to realise the need of a prices control board and a regulation of the market. New Zealand wanted an even and stable market, with an elimination of speculation.

While the producers of New Zealand were undergoing hard times, continued Mr Goodfellow, conditions were the same the world over. Following a period of inflation they were now experiencing a period of deflation. However, things were now looking a good deal betters tlian they were, though’ .they had a long way to go before they got back to the conditions oif 1914. They should be neither too pessimistic or over optimistic. As a result of the increasing production in the Southern Hemisphere during the past few years the old pricefixing basis had turned a complete somersault and New Zealand produce now received the highest prices .during the English summer instead cf during the winter, as in past years. Notwithstanding the slump the British Empire as a whole was now in a better financial position relatively and commercially than she was' .’n 1910, and the nation was economically sound. The price of the butter-fat was not wholly dependent on the price in Great Britain ,to-day, but on the price of commodities. He thought prices would never cpine down to the 1914 level. It will be two or three years before we got back to the same exchange value as in 1914. There would have to be a very substantial reduction of commodities and of the taxation' of this country. He considered the taxation of the country should be drastically reduced, and that could only be done by public agitation. New Zealand was reputed to be the highest-taxed country in the Empire, and of these taxes the farmer, earning 90 per cent, of the wealth, paid 90 per cent, of the taxes. BETTER TIMES. Mr Goodfellow continued that having visited nearly every civilised portion of the world, he was .convinced that in a few years this Dominion would be the greatest dairy export country in the world. No ether c'ounr try was so suitable for the production of high-class dairy produce as this country. After inspecting the dairy factories of the other chief producing countries he satisfied that the ones in New Zealand were better equipped than any of them, and that his company had without a doubt the strongest and most complete dairy producing organisation. He thought things were going to progress, and those who could ■ hang on were in for better times. Above all, it was essential that there should, be loyalty to the company and to themtselves.