INCREASING THE REVENUE

New Zealand Times, Volume XXXVII, Issue 8357, 18 February 1913, Page 2

INCREASING THE REVENUE

ONE MILLION A YEAR. POSSIBILITIES OF DAIRYING. There has been much cause for re-, jok-mg throughout the country because' ■of the highly satisfactory prices that I surround the wool market, and various estimates of the increased revenue that will be forthcoming from this somce, alone, in comparison with the hgures of the previous year, range from anywhere between three-quarters and one million pounds cash gain, taking tno value or the export trade in agricultural products wool is the biggest revenue-producer, and the clear gam of something like a million sterling is something to be very thankful for in these times or reported financial stringency. It has to bo remembered, however, that tho wool market is subject to periodical and sudden changes that often unset tho best calculations.- While there does not seem any probability of a falling market—present evidence is; in the opposite direction —tho experience of tno past should make growers! wary of building their prospects on extreme expectations. With dairy produce the position is entirely different, and producers can. safely rely upon lair average value from year to vear for tho exported a tide. While rejoicing at the improved position or the grower of wool and the country generally by the acquisition of an additional million of monej, it is interesting to follow a tew rough calculations covering the possibilities that lio before dairymen of making an annual increase in the revenue that u ill bo shared by all, and will remain permanent for many years. According to tho latest returns available the value of dairy produce exported is represented by a revenue of £3,816,972, while the number of dairy cows being milked is set down at 633,733. The average 10turn per year of butter-fat is as nearly as can bo ascertained 1901 b pel cowj which, taken at a market value 01. Is 2d per lb, gives an average earning power of £ll Is 8d for each cow. Turning again to official figures showing the average cost of production, it is found that it costs the owner £8 to feed, milk and care for each individual cow. Deducting this amount from the gross receipts, £3 Is 8d remains to represent the profit to the farmer. When it is remembered that numbers of individual cows under official testing produce 4001 b of butter-fat in tho year, and an average herd yield of 3001 b is not uncommon, tho Dominion average of 1901 b is made to appear very low. To, remedy this discrepancy and, weed out the great host of unprofitable cows that constitute a direct loss to the owner and materially affect tho general revenue of tho country tho testing associations that have been established are performing a most 'useful service, and it is surprising to note the comparative indifference that many dairymen show towards this moans of checking leakages. If discussions at annual meetings of dairy companies may be accepted as a guide, it would appear that suppliers’expect factory managers to do that which is impossible year after year by reducing the cost of manufacture on tho one hand and increasing tho overrun on the other. It has been found necessary, in order to preserve the good name of our dairy produce, to limit tho amount of moisture in butter, but acting, no doubt under instructions from their employers, buttermakers very often go perilously near the law courts in their efforts to satisfy the demands of suppliers for a bonus on their yearly earnings. Everyone wishes to see the producer receive the last penny that can safely be derived from his enterprise, but in this particular instance dairymen have the moans at hand to help themselves without looking to the manufacturing end, which has almost, if not quite, reached its limitations in economical working consistent with maintaining a high standard of quality. This being so, the country looks to the producer to improve his position, and is willing to assist him to that end. The following figures taken from an official table prepared by the officers controlling the Dairy Division show the relation tho cow bears to the cost of producing butter-fat and profit. Tho butter-fat is based on a value of Is 2d and the annual cost of keeping each cow at £B.

It costs no more to feed a cow producing 4001 b than to feed one giving only Tialf or one-third of that quantity, and this is what the fanners aro being urged to remedy. On the number of cows now being milked an increased yield of but ono pound of butter fat would mean a not gain of £35,000 per annum, and for every 281 b fain the revenue would ho increased y a million pounds sterling in hard cash. Assuming that it is possible by careful culling and proper feeding of cows to increase the average production of butter fat per cow by 281 b every year, until say 3501 b instead of 1901 b represents the average production, it 'will mean that by the year 1917 our annual revenue from exported dairv produce alone will have reached a value of ten millions sterling, or a gain of one million per annum for six years; without the feeding or upkeep of ono additional cow to the number now being milked. The figures here quoted are not fan tastic, nor is the realisation beyond the realm of practical - demonstration. Seeing that there is such a wide margin for improvement under scientific and careful management of dairy herds throughout the Dominion no one should begrudge the efforts that are being extended, and the cash that is being spent by the State in co-operat-ing with the producer and leading the way towards more economic methods, for while the dairyman’s position will bo materially .benefited so will the coffers of the public exchequer be augmented by the increase in revenue that will be constantly flowing in from an assured and safe market abroad.

lbs fat Cost of Profit per Total net per cow production. lb fat. Profit. d. cl. £ s. d. 160 ... 12.0 2.0 16 8 200 ... 9.6 4.4 3 13 4 260 ... 7.68 6.32 6 11 8 300 ... 0.4 7.6 9 10 0 350 ... 5.45 8.52 12 8 6 400 ... 4.8 0.2 15 6 8