SOUTH ISLAND DAIRY ASSOCIATION

Otago Witness, Issue 4030, 9 June 1931, Page 24

SOUTH ISLAND DAIRY ASSOCIATION

ANNUAL MEETING THE DAIRY REGULATIONS DRASTIC CRITICISAf BY THE CHAIRMAN. The annual meeting of the South Island Dairy Association ot New Zealand. Ltd., "as held i n the Y.AI.C.A. rooms on Thursday. The chairman of directors (Air H. J. Aliddleton, of Invercargill) presided. AIR AIIDDLETON’S ADDRESS. The chairman, in moving the adoption of the report and balance sheet, said that the latter revealed a very’ sound position. The balance on the profit and loss account was down to £lBl Ils Id, a decrease of some £5OO from last year. Considering the difficult times the association was passing through its financial position was most satisfactory, always remembering the mak. ing of profits is not its job. It was now about 14 years since the executive had laid down a policy of building up a reserva fund. This policy had been strictly adhered to, and the fund—with the addition of this year’s balance—now amounted to approximately £14,000, to be exact, £13,976 18s, a comfortable nest egg these hard times. He commended to their attention the annual report. It was a most valuable exposition of the recent history of the industry, and reflected great credit on its author (Air Wight). He thought it was incumbent on him to attempt a review of the shocking and disastrous mess which the dairy industry, and more particularly the cheese branch, had been permitted to get into. Obviously the most important factor in bringing about the slump in values was the worldwide economic condition. Next in importance, and a good second, was the monumental blunder which had permitted the export of skimmed-milk cheese—call it standardised or cheddar or any other euphonious name they liked—the fact remained it was skimm,ed-milk cheese, well known to be unacceptable to the trade and consumers in England.— (Applause.) He well remembered away back in the seventies the United States of America, then the biggest shippers of cheese to England, had started to send over skimmilk cheese with the result it was soon driven out of the market. To attempt to force on New Zealand’s only market a poor article at a time when prices were falling was surely the very essence of ineptitude. When prices were high it may be possible to get away with such a practice for a time, but buyers were always more critical -when prices were low. Now clearly the responsibility for dealing the industry this felon blow must in the final analysis rest with the Minister of Agriculture and/or the Director of the Dairy Division. Who else could have altered the regulations prohibiting the export of other than full-cream cheese? It had been admitted many times by-the diiector of the division that he was aware that illicit skimming was being practised by certain unscrupulous factory companies and that he was not able to stop it The Alimster in his statement of Alay 11 last said:—“ As a result of the decision ot this conference (December 7, 1928) regulations were at once made legalising standardisation, a very necessary procedure consequent upon the fact that a good deal of unauthorised standardisation had already been practised, the cheese produced being branded full-cream.” Here was a point for the American Government. Because it cannot stop bootlegging, legalise the practice. Laws must be obeyed.

After two years and a-half of manufacturing skim-milk cheese, and the loss °f several millions of money, together with the loss of goodwill and reputation, winch would take years to regain, the Alimster had at last come to the conclusion that “the attempt to place this class of cheese permanently and successfully on the British market cannot be said to have worked out satisfactorily, not because much of it was not of good quality, but mainly because, largely through the endeavour to obtain the maximum yield to the factory, a relatively small percentage of it was of such poor quality that it created a prejudice which extended to the whole.” This suggestion of the Alinister’s was not borne out by the grading figures. Of 525,987 crates only 5 per cent, graded finest. It would appear that the Minister was not yet sufficiently penitent for his sins, and did not yet realise that the long-standing prejudice in Efigland against skim-milk cheese had not been created by “ a small percentage of very poor quality. Oh! the pity of it, the pity of it, that New Zealand’s most important industry—an industry responsible for more than one-third the value of all their exports—should be dealt such a staggering blow. For some months the value of their cheese, f.o.b. New Zealand ports, had been from 4d to 5d per lb. How was the unfortunate dairy farmer to exist and carry on. particularly on £4O to £BO an acre land? Those people who had been clamouring for a fall in land values might recognise in their dairy regulations a valuable agent to that end. If there was anything calculated to bring down land

values it was their dairy regulations and the effects of them. Embodied in recent utterances by the Minister and by officers of the department there had been distinct evidence of attempts to throw the blame for the mess the industry had got into on the shoulders of the producers. For example, ■producers vyere being blamed for holding cheese at too low a temperature, and for too short a period before shipping. Were these practices not governed by departmental regulations? Was this an indication that the authorities "see the writing on the wall,” and was it, an example of the well-known maxim. “ If you have a bad cate abuse the other side” ? If an authority were set up to direct and control a business and that authority did not .control, then it was a distinct weakness and danger resulting in chaos. He now came to the third factor in bringing about the deplorable condition of the industry, which was probably mainly, if not wholly, responsible for the serious deterioration in quality of late years—excepting, of course, the practice of skimming milk for cheese making. He referred to the shocking condition of much of the milk taken over the stage, milk which before the advent of the pasteuriser would have been rejected. The knowledge that the pasteuriser was in use had led to further deterioration in quality and cleanliness. The knowledge that he could get away with it and would not be penalised encouraged the careless and dirty supplier to still greater efforts in carelessness.

When the pasteurisers had been installed the main object had been to correct and expel bad flavours —not to make it possible to receive dirty and otherwise bad milk. It was now customa’y to feed cows on rape, and other strong rank flavoured crops, and turnips were Used without restriction as to quantity or time of feeding. So it would appear that having this machine, the cheesemakers were enabled and required to take in,almost any kind of milk, cook it up and get it stamped “ Finest ” or “ First ” — rarely below that—by the departmental graders. Of recent years the grading points had been stiffened up and quality had gone down in inverse ratio. . The blame for this was not on the factory manager, it Would appear he could not help himself. Did the department know how New Zealand cheese, on arrival in London, stood up. to the New Zealand grading? From all sides complaints were broadcast. save only from the departmental officers stationed in London. Why? If cheesemakers were asked: “What is the chief need or use of the, pasteuriser? ” would the answer be “To enable us to receive milk which without it we could not touch?” Again, if managers could be assured that only clean, sound milk could come into their factories, would they then say that the pasteuriser was a necessity? Dr Ruddick, the Canadian Dairy Commissioner, speaking on pasteurisation; said: “In Canada very little cheese is made on the pasteurised plan. The Dairy Department has been studying this problem, from various angles for the past 25 years; as a result we are not prepared to recommend the system as yet, but we may be compelled to adopt it if the quality of our raw material, milk, becomes much worse.’’ When Dr Ruddick had returned to Canada. after visiting New Zealand to inquire: into. New Zealand methods, he had stated that Canada had nothing to learn from: New Zealand. The truth of that remark was very apparent to-day. Now, gentlemen. Why in Heaven’s name do you not take hold of your job and insist.on reforms being brought in?” the chairman asked. “ For a start let us have compulsory farm dairy instruction and compulsory milk-grading, with differential payment for grade, and ruthless rejection of bad milk if after- a visit from the farm instructor there is not speedy and material improvement in quality. I think I cannot do better than repeat what. I said on this subject from this platform last year.” The chairman then read the following extract from his speech last year:—

Now as to quality. From all sides they heard much criticism of their cheese. They were told that some of the largest retailers I —the multiple shops—were now dropping New Zealand cheese and swinging over to that from other countries. This was disastrous if true. Had they been living in false security because their grading figures had actually improved for some few years? He was, of course, aware that North Island grading figures had dropped heavilv quite recently, due, apparently, to standardisation. He did not think they knew enough of the position of the London end. Did their produce in London stand up to- New Zealand grading figures? He was pleased to hear that Mr Alexander Ross—in whom the industry had great confidence—was shortly- to return to New Zealand. He would, he was sure, much to toil of great value; if he was permittted to talk freely-. More than once their conferences had affirmed the principle of grading milk at cheese factories and differential payment, and had urged the Government or dairy division to bring down regulations to give, effect to this. Of course, with no result—Governments did' not.xhoose to commit harikari. If the industry was in earnest, why wait for Government or anyone else to do what they were quite competent to dr themselves? Was it that their factory directors had no more courage than Governments? Why not make their factory managers supreme on the milk stage, with pow-er to grade and, in extreme cases, to reject milk that was unfit? He believed that their managers could be trusted to do this with tact and discretion; to advise and help the people who brought bad milk, and. finally, to reject milk if the quality was not raised to a sufficiently high standard. There was evidence that the managers were quite competent to judge milk; there were many of them who were frequently successful at local shows and many others close up. In Southland there were a number who had proved their ability at the Empire Show in London. It was inconceivable that they made their show cheese from milk taken indiscriminately. Having absolute control of all milk coming over the stage, the directors could reason ably demand of them a first-class finished product. But what of the

directors? And here, perhaps, was their greatest difficulty. They shoui ’ stand solidly behind their managers, back them up in every possible way. and see their billets were not in any way endangered because they wet >. doing their duty. If any of the directors were amongst the offenders there should be no discrimination in the.r favour. Then the logical sequence was. of course, differential payment. Failing that, it would be like a man testing his cows for fat and taking no steps to improve his herd by culling and breeding It might be said that men who we.° penalised would leave the factory Where would they go? Would other companies be keen to welcome a man who persisted in producing bad milk’ If he was driven out of a factory and ultimately out of the business, the in dustry would be well rid of him. A small percentage of bad milk would eertainly pollute the who'e vat. He understood a very few had already adopted the practice he had suggested, but not, all of them were making differential payments, which seemed to him very futile. It would probably not be long, however, befort the others would be compelled to got

into line. Reverting for a moment to standardised cheese, Mr Middleton said he would point out that, while it would appear that the Minister in his statement on May 11 had very decidedly wakened, nowhere did he say in so many words that the practice should cease at the end of this season. Was there a possibility ot yet another influential deputation coming to Wellington from the north? In conclusion, he had thought the time had gone by-for the presidential address to be made up of amiable platitudes. The perilous condition of the industry justified the plainest possible language. If he had failed to impress them with the need for prompt and drastic reforms then he had failed indeed, and was not fit for his job.— (Loud applause.) Mr C. R. Smith said that the chairman had offered an insult to the Jersey breeders of New Zealand. The Minister of Agriculture had also made the same remark. They had called standardised cheese skim milk cheese. Standardised cheese made from Jersey milk was so rich in fat content .that if all of it were left in the cheese the cheese so made would show pockets of fat all through its face, and be so greasy that it would not be wanted, and so it was necessary to abstract some of it. There was still left in, however. 53 per cent, of.fat, whereas the New Zealand standard was 50 per cent,, and the Canadian Standard was 45 per cent. The cheese made from this milk was not, and never had been, skim milk, and he protested against such a name being applied to it. The motion was carried. ELECTION OF OFFICERS. The retiring directors. Messrs A. P. Fleming (Otokia) and John Smith (Oware) were re-elected. Messrs J. W. Smeaton and Co. were re-elected auditors. ; COMMITTEES RE-ELECTIfb. •The present Awards Committee—Messrs W. A. Al'Lean. G. R. Herron, and F. J. Lehany—was re-elected; Mr John Fisher (Otautau) reported on behalf of the Southland Export Calves Committee. He said that the final position had not been determined. Advantage had been taken of the exceptional drop in values, and there had been two or three claims. What the final position would be was not known, but the committee still thought that there would be a dividend. Some proprietary buyers were riow likely to operate. The committee appealed for loyalty to the pool, as this would have a stabilising effect on pricesi Unless there was loyalty prices must sooner or later drop considerably. The committee was re-elected. COMPULSORY GRADING OF MILK,.

The chairman moved the following remit on behalf of the executive:—Having regard to the imperative necessity of improving the quality of our cheese, this conference urges the Dairy ’ Division to take immediate steps to institute a system of compulsory grading of milk for cheesemaking. with differential payments to suppliers based on quality. The chairman said that the meeting hadjdecided year after year that this was advisable. He hoped that the remit would be carried unanimously because it would help the Government to take action. They knew that Mr W. Al. Singleton, of the Dairy Division of the Department of Agriculture, had always been in favour of what was being sought. If the proposed system were adopted it would not entail fresh appointments. All the work could be done by the factory managers if they had sufficient backing from the directors. Its value would soon be reflected in the improvement in the quality of cheese. Mr J. R. Thacker (Okain’s Bay) seconded the. motion.

Mr Fisher'suggested the addition of the words “ that the regulations regarding cream grading and testing be more rigidly-'enforced ” t° cover a later remit. What was asked for had already been obtained'with respect to cream, but it wa§ not being enforced rigidly. It had done a great deal of good, but the effect had been slow.

The chairman would not agree to any additions to the remit.. Mr C. R. Smith said that the remit was aimed at the crux of all the dairyman’s troubles. They would have to do more than pass academic resolutions. They would get nowhere until the managers were given power to reject milk and cream that was impure. No manager could make a good article unless he had good faw material. If managers were given such power there must also be means of preventing a farmer from sending his milk to another factory. Mr Caldwell (Menzie’s Ferry) referred to the possibility of feeling being created between manager and suppliers. The managers must have the backing of directors. Mr Anderson (Stirling) expressed the opinion that the only way to bring about an improvement was to make a difference in payments. Mr E. R. Eades (Edendale) said that the danger of such regulations was that the manager would lose his job if he “ got up against ” his suppliers. The question was: Who was to do the grading? He considered that the only sound method was to employ independent inspectors. Mr ; Singleton said that he was almost afraid to speak after hearing the cha'ir-

man’s remarks.—(Laughter.) The Minister of Agriculture had called a meeting last month, and the committee which had assembled had passed a resolution recommending that no other but full cream cheese should be made after this season. It had passed a further resolution urging closer co operation. A committee had also been set up to make recommendations on a number of items concerning the quality of cheese. It had decided that milk grading was imperative. This should follow the same lines as cream grading. The suggestion was that the manager of each factory should be a milk grader and that as many of his assistants as possible should also have certificates. The milk should be examined once in about 10 days on a date not known to the supplier. Two grades were recommended —first and finest. There should be a minimum of difference in payment of Ad per lb. He did not want the association to feel that its recommendations were not properly considered. They had all been given the closest consideration. All the responsible bodies had passed resolutions similar to this one. The Government had gone so far as to have legislation drafted, but as the time had ap proached for it to come before Parliament conditions had changed for the worse. The Government had then considered it advisable that the matter should stand over in view of the conditions.

Mr W. A. lorns. of the Dairy Control Board, said that it was necessary that there should be a uniform method of milk grading in the North and South Islands. That was a big point, but it could be achieved. Everybody in the north and in the Government realised that New Zealand was well off the rails as far as cheese was concerned. To get .back it was necessary to start at the bottom, 'fhe best milk possible must be used. No man should object to grading when he realised the position that the industry was in to-day. Mr W. Muir (Tuturaii) said that his factory had paid 2d less for second grade milk and had not used it for cheese. Now very little milk was received that was not good. Carelessness was the reason for poor milk. Mr A. Glass (Tussock Creek) outlined the experiences of two factories with which he was connected. He said that testing could be done without extra expense, and there had been a striking improvement at the factories to which he had referred under the testing system. The. chairman said that the committee which had been set up in Wellington had anticipated most of the association’s requests. He hoped that things would.be different now. The motion was carried unanimously. PREMIUMS FOR QUALITY. .

“That this conference recommends the adoption, on a national basis, of a scheme providing for the payment of premiums for quality cheese, on a sliding scale according to the grading points, as suggested by the director of the Dairy Division, and that the-Dairy Division and Dairy Produce Board be requested to take the necessary action to put the scheme into effect without delay.” Mr John Smith moved this remit on behalf of.the executive. : He said that it was on the same lines as a motion that had come before the conference at Hamilton last .year. The motion had been carried, bn the ground that it would be beneficial to pay on each grading at the ports of export. The scale was suggested to start at 901 points, on which there would be a premium payment of 5d ifor every crate. The scale would then rise till, on a grading of 95 points, there would, be a payment of 2s 6d per crate. The speaker said he thought merit should be rewarded. Air W. Bryant seconded the motibn. The chairman said he thought this'was a very important proposal, although there might be some objections to it in the North Island, as the factories there might think they would have to pay all the premiums. — (Laughter.) However, the North Island factories could quite casilj’ overcome their unhappy position by improving the quality of their outputs. He did not think they’ should get any special consideration. A voice: Where will you get the money? The chairman.: From a levy. It was simply taking money out of one pocket and putting it into another, although the pocket might not be in the same breeches. —-(Laughter.) • On the motion being put, there was onlyone dissentient vote. The chairman: Have you a vote Mr Agar. I don’t think you have. I think we can say it is ’a unanimous vote. — (“ Hear, hear,.”) . Mr C. P. Agar: I just wanted to establish the point that you are speaking for the members of the association, not for the industry. The chairman: They are synonymous terms, with one exception, of course. I think we recognise that you are the exception, Mr Agar.— (Applause.) STANDARDISED CHEESE. The following remits were submitted by tlie Edendale Dairy Factory Company;— “That it is the opinion of this conference that the export of standardised cheese should.be absolutely prohibited.” “That this conference has.no confidence in the present administration of the Dairy Division of the Agricultural Department.” Mr E. A. Eades (Edendale factory) mdved the first remit. He said that they knew what the effect of the introduction of standardised cheese had been on the industry in this country. He understood that the, Dairy Board had now passed a unanimous resolution to stop the manufacture of standardised cheese, but it had taken a mighty long -time to do it. A voice: No. Mr Eades said that at last it had been done, and he hoped their conference would pass a unanimous vote in favour of his motion. Mr A. W. Amos (Alomona) seconded the motion, which -was carried unanimously. Mr Eades then moved the second remit its reading causing much laughter. Mr Eades said he moved the motion on hehalf of the Edendale factory. He was glad that Mr Singleton and other members of the Dairy Division were present that day’, and he desired to say that whatever discussion arose he hoped it would not become too personal. Personally they had nothing against these officers, but they had a mighty lot against the administration of their department. They all knew that the cheese industry—? lie was not going to say anything about butter—had got into a terribly bad state.

They wire all looking for a remedy for the position, but nobody, including their friends-of the Dairy Division, could give them one. A few years ago ''they had sent. Mr A. Ross, of the Dairy Division, Home, and he had come back. He had been sent Home to see how their produce arrived there. What had the result been? In his opinion nil. They had sent their director of the Dairy Division Home a couple of years ago—and he had thought at the time it was a move in the right direction. Ihe figures showed that, notwithstanding the fact that they had sent Home these two officers the quality oi their produce had gradually declined, -the speaker complained of the time that ** at ‘, e ‘ a P sec J before Mr Ross had come south to tell them what was wrong with their He thought it had been up to the Dairy Division to tell them exactly what had happened. A lot of things had happened to their industry, and the Dairy Division was responsible, lhe speaker criticised the division for not carrying out the powers with which it was invested, and said that apparently it was not strong enough to act. Mr Ross told them that seven factories in New Zealand were responsible for a lot of the very bad quality of their produce, blit why should seven factories h® a " owe d to ruin the whole industry, lhe producers might be to blame to a certain extent, but there were many things that the department could have put right easily had it made an attempt to do so. The speaker said that in the grading ports in the Dominion there had been a great decline in the quality of their produce. In 1927 and 1930 the percentages of their export of finest cheese from the different centres had been respectively as follows: —Auckland, 45 per cent, and 16 per cent.: New Plymouth, 53 per cent, and 13 per cent.; Patea, 46 per cent, and 5 per cent.; Wanganui, 54 per cent, and 23 per cent.; Wellington. 61 per cent, and 27 per cent.; Lyttelton and Timaru, 68 per cent, and 29 per cent.; Dunedin. 78 per cent, and 68 per cent.; and Bluff, 69 per cent, and 60 per cent. Air Eades said he would like to know what had caused the difference in the price between New Zealand and Canadian, cheese. They were supposed to send cheese to the Old Country equal to anything that went on the British market, and yet Canadian was worth 20s to 25s more than New Zealand. It appeared that in New Zealand they were expected to make cheese to suit the dairy, division, not the British consumer.— (“Hear, hear.”) .Reference was made to the waxing of cheese, and the speaker said that there was a difference of opinion in the dairy division on this matter. There was also a difference, of opinion amongst their buyers, at Hom.e, and he took it, that the dairy division was simply following tlie Home buyers. ' They knew that waxing had been Opposed' in the north, and in the south so far as he' knew, notwithstanding Mr Singleton's opinion that he was quite favourable to it so long as it was properly carried out. If the North Island factories would not do tlie waxing properly,, why allow them to carry on? Dealing with loaded chC'ese, the speaker said they knew that' there was a big percentage in the North Island. It seemed to him that all that was,.necessary was to bring down; a regulation prohibiting this loading. He thought the whole system should be handled in a more courageous manner.-—(Applause.). Mr Young , ,(Alerivale) seconded the tnotion. He said that the motion was not a very palatable one; but if it wan brought forward with the idea of making a better, standard in the dairy division they should give it. very careful considers tion.

Air John Dunlop agreed that the quality of their produce had drifted back. The South Island had held its position fairly well, but in the North Island they had slipped back a great deal. They were now feeling the effects of the depression, and they were looking round for a scapegoat, The . motion before the meeting was a case of mistaken identity. He thought the cause of the faults that existed in this province could be found in their own factories and their own cow sheds. The speaker dealt with the question of the export of cheese, and said that there was nothing to show that the cheese they were producing in the south was not of the quality they desired at Home. He; thought it w-as wrong to blame the Dairy Division for the position, and he hopedthe motion would be lost. If the motion were passed, if would go forth that the Dairy Division had been at fault, and he would say that this was not the true cause of their existing troubles. Air Robert Lee also considered that it was wrong to blame the Dairy Division, Air Eades had said, that they were looking for a remedy, but he thought they were looking for a scapegoat. “ \Ve have got no better department in the country,” said Air Lee, “and no other officers are carrying out their duties better than those of the Dairy Division.” Air C. R. Smith said he also intended to oppose the motion. They knew, they had hard times, and they should learn their lesson and get right down to facts, and ask the department to exercise the authority with which it was invested. Air . John Fisher said he was going to oppose the motion, as he considered it was too drastic. The Government was spending £400,000 to £500,000 per year in connection with' the Agricultural Department, and where would they be if the Government said they would hand over the control to the producers themselves. He knew there were a lot of things the department could'do, but that would not justify them in smashing up the whole organisation. If they had a premium on finest cheese for export they would lift the quality. Air V. Harkness (Taranaki) said that the Taranaki farmers were just as keen to deliver their cheese to the English market in good order as those in the south. The Dairy Division was always out to do its best for the industry. Air Colville said that although his factory was making a high grade of cheese, this cheese w.as .not finding favour at Home. He would not say, however, that he was in favour of the motion.

Air Singleton said it was 30 j-ears ago since he had first come to Dunedin and he had been connected with the dairy industry since that time. It had taken about 30 years for them to realise that it had no confidence in him, and he must say that they had been slow in the uptake.—■. (Laughtpr.) He had realised last spring that they were in for a lot of criticism in view of the low prices. He said that there had been a great deal of discussion

on the point of whether they should man facture cheese other than full creai cheese, and gave some details regardin the first use of the word “ standardised cheese. Air Singleton spoke at length o the proceedings at the conference held i Wellington in December, 1928, when th matter had been brought to a head. H agreed that the North Island was primar ily responsible for the bringing in o standardised cheese. At the 1928 confer ence the South Island Dairy Associatioi had not been represented. Air Singletor stated what he had done at the 192 f conference in the interests of full creair cheese. There was not one representativt of the South Island Dairy Association with power to vote at the conference, and he suggested that its executive hac depended on him, that he had not let them down, and that he was entitled to their confidence. — (“Hear, hear.”) There had been a lot of misrepresentation in connection with standardised cheese, and what he had done in connection with it, said the speaker, and he explained what were the facts of the position. The chairman said he would like to say that his association had had no idea that the conference in 1928 was going to adopt such a revolutionary measure as it had adopted, and that it would be put through in one day. He presumed, however,'that anything the South Island people could have done would not have altered the decision come to, as they would have been outvoted. He' was strongly of opinion that the whole thing had been cut and dried. It was absurd at this stage to suggest that if the South Island Association had been represented at the conference it would have had an influence on the conclusions come to. That was too ridiculous for anything. Air Singleton said he did not want to give the impression that had the South Island been represented at the 1928. conference. when the standardised cheese r.er gulations were adopted, their presence would have altered the result. His point was that he needed assistance in protecting the full cream brand.

Air Eades, before replying, asked that the latest ciicular of the New Zealand Dairy Produce Importers’ Association in London should be read. After it had been read he stated that it contained a great deal of advice which the department could have given long ago. It was significant that with the exception of one all of the speakers against tlie remit weie members or ex-inembers of the Dairy Control Board. It seemed that they were afraid that the new organisation would be placed under the-ir control, but there was no chance of that. In answer to the speaker’s remarks, Air Singleton had said nothing outside the question of standardised cheese. Apparently he accused Ellendale of a number of'faults. Air, Eades was prepared to admit that Edendale had introduced skim milk for starting, and the custom had spread all over the country. He had also accused Edendale of separating its milk. Air Singleton: I said there was more than a suspicion. Air Eades added that Air Singleton had told him that he did not believe that any factories in the South Island were standardising. Air Singleton: I have had my eyes opened since then. Air Eades- denied that a single pound of material had been separated apart from what was needed for separating. Mr Singleton had been guilty of making an unfair statement. Air Eades accused delegates who had discussed the matter, and agreed with him on the street corners, of not having the backbone to support him at the meeting.. The remit was heavily defeated, on the voices. ADAIINISTRATION OF THE INDUSTRY. The Co-operative Dairy Company of Otago, Ltd., forwarded the following remit:— (a) That this conference expresses its dissatisfaction with the present methods of administration of the dairying industry, and considers past administration has been ineffective, failing to provide a truiy authoritative head, representative of the industry, charged with the responsibility of directing and governing the industry m its internal as well as its export affairs. (b) That the effective administration of the industry involves the exercise ot authority and a degree of discipline winch can only be applied by a board or organisation elected by the producers, and set up as the head of the industry with powers to. guide and control in all matters relating to internal as well as export policy. (c) That in order to further the proposals set forth above, a committee be appointed from the conference to bring down in detail an administrative plan for the industry, the report of the committee to be submitted to a further conference, or conferences, of the association; euch conference or conferences to be held in Dunedin, or several centres as may be deemed advisable by the executive of the association.

Air C. R. Smith, in moving the adoption of the remit, said that the meeting had admitted more than ever before that the industry had troubles. Dirty linen was being washed which should have been washed years ago. This had been due to the fact that the producers had been slow in getting what they wanted. If they wanted anything, surely their numbers were large enough to enable them to get what they wanted. The Control Board. dealt only with produce after it was ready for shipment. Otherwise it could not help the producer, because it did not have the power. The Dairy Division could not go in advance of public opinion. There were still people, for instance, who did not think that there should be compulsory grading of milk. Air Smith dealt at length with the question of maturity in cheese, stating that it might be necessary to obtain a loan of £5,000,000 to pay for cheese lying in store while it matured. Air Smith -went on to detail the benefits ■which would be obtained from the establishment of such a body as was suggested in the remit. Air Dunlop said that he agreed with much that Mr Smith had said, but it would be difficult to,.set up another board. The time had come when P ro * ducers had to get together to improve the quality of the country’s product. He thought that there was .not a possibility of setting up another board at present. He was. however, in sympathy with the project.

■Mr Fisher said that he did not think t desirable to set up another board. Consideration had to be given to cost, md the farmer already had to pay a leavy bill for the support of organisations.. He moved the following amendment.—“ That representatives from this conference be appointed to attend the conference of the National Dairy Association and support the proposal for the Betting up of a committee representative of the Dairy Control Board, the Dairy Division, the Massey College, the National Dairy Association, the Taranaki Federation, the New Zealand Co-operative Dairy Company, factory managers, the North Auckland Association, and the South Island Dairy Association to prepare and submit a common basis for the coordination of all dairy organisations and the appointment of an advisory board. This would do away with a great deal of overlapping and would save expense, as well as giving a strong administrative head. It was not a good plan in time of depression to do things hurriedly, as there was often an urge to. take action for improving conditions which in ordinary times would not be contemplated. Mr Mee opposed both motion and amendment. There were too many bodies and too many levies. The best way of getting over the difficulty was to have the Dairy Division removed from political control. . A delegate stated that it would be found that a body such as was suggested existed in Denmark. . Mr lorns said that it was true that the powers of the Control Board applied only to export. He said that there were many problems facing the industry which could not be overcome by a board of ordinary farmers. Most of these problems would have to be solved by research. Managers in the north had tried to make better cheese than ever before and had failed, though the milk they had was just as good as ever they received. The question was mainly one of quality, and the Control Board had given it very careful attention. He did not think that any board could do more. The board would be helped if the Agricultural Department disclosed the names of factories whose product was below standard. Dr Rcakes (the Director of Agriculture) said that he was glad to see that the industry had made up its mind to put things right. It had always been the object of the Government to treat the industry as one big business concern. New Zealand had been falling back. Lately problems had arisen which required very deep consideration and research. So far as the Minister and the department were concerned it was their aim to do all they could to bring about a satisfactory result. The department had always tried to work in the closest co-operation with the Dairy Control Board. The department had'had indications that it was considered that the department would net be playing the game if the names of the factories whose product was below standard were disclosed. Reports were, there fore, handed to the board with the names of the factory deleted. If the factories were willing to have their names dis closed, the department would certainly give the names to the board. Whateve’ might be done, the department would di all it could in the way of co-operation. The cleanliness of milk must be a key '.done in the work of building up quality. There was no farmer who could not tell when his byre and its surroundings were not dirty. Particular attention should b? paid to milking machines. It was finally agreed that the amendment should take the place of clause C of the remit. In this form the remit was carried by a large majority. It was decided that the delegates to the conference should be one from the South Island Dairy Association, one from Otago and Southland managers, and three representing directors and factories. The following were then appointed Messrs C. R. Smith, John Smith. Fisher, Fades, and Bagrie. As it was found that Canterbury was not represented. Mr Thacker was appointed as an additional delegate. INDUSTRIAL. The Co-operative Dairy Company of Otago, Ltd., submitted the following re mit: — “That the South Island Dairy Association press for an amendment of the In dustrial Conciliation and Arbitration Act, to provide for compulsory conciliation and optional arbitration.” Mr C. R. Smith moved the motion. H< said that people had to recognise that sacrifices had to be made. He wanted the primary industries to be freed of the Arbitration Court. Mr Lee said that a section of the dairy industry in the North Island had prevented 'the Reform Government from placing the necessary legislation on the Statute Book, giving effect to the idea of the motion. The motion was carried unanimously.

LANTERN SLIDE EXHIBITIONS. Mr lorns, chairman of the Dairy Board, then explained various lantern slides thrown on the screen showing some of the phases of publicity carried out by the board in London. He said that the board had so far spent £71,000 in publicity, and had distributed 900,000 two-ounce and four-ounce packets of butter and cheese These were sold at Id and 2d each. The board had introduced many advertising schemes which had been adopted by their competitors in the Home markets. The board was also showing films of New Zealand in many of the picture houses in the Old Country. Mr George Mason, who had <5OO shops, had told him. said Mr lorns, to ask the New Zealand fanners to send ‘only full cream cheese Home, as they could get all the quality of a lower grade which they desired from the Continent. Professor Riddet gave a lecture, with the aid of lantern slides, on the manufacture of butter and cheese. Pictures were shown of openness in cheese. Tn the holes, said the lecturer, they would often find particles of cheese, but there was no suggestion that the fat was the cause of the holes. Openness developed after the cheese was taken from the press, no doubt caused by the natyre of the milk and the method of manufacture. The type of openness was a very important feature for consideration. The effect of pasteurisation on the manufacture of cheese was shown on the screen. All kinds of methods had been adopted in making cheese The v lecturer said that with raw milk of the very finest quality . they < ouid manhfac. ture cheese of a higher chiddar flavour

than by the pasteurising process. Pasturisation did away with the fat pockets found in cheese manufactured from high testing milk. The ideal was a r<rw milk cheese, but they must first of all have the quality of their milk right. He would say that with the best quality milk their troubles would be mitigated, though he would not say they would be obviated altogether. It was, of course, necessary that they should have dean milk. Cotton pads would take out certain material, but it would not take out bacteria. The idea was to see that the bacteria did not get in. Milking machines were a common source of infection, and every care should be taken to keep thentfelean, and also the milk cans. They should be washed and steamed. The cans should be well dried, not with a cloth, but with good dry air. The problem of returning whey to the farms was a difficult one. but the question of having clean cans could, with care, be overcome. They should cool their milk to 60deg Fahr., and certainly not more than 65deg. The speaker dealt with the question of the -effect manufacture had on the quality of cheese, and referred to what was being done at the Massey College. Votes of thanks were passed to the two sneakers, and were carried by acclamation. SECOND DAY. The meeting was concluded on Friday. The chairman of directors (Mr H. J. Middleton) presided. CREAM GRADING REGULATIONS. The Farmers’ Dairy Federation, Ltd., submitted the following remit: — That this conference consider the advisability of a more rigid enforcement of the cream grading regulations, or alternatively that such regulations be excised from general regulations. Mr John Fisher (Otautau), in moving the adoption of the remit, said that the federation considered that the rigorous enforcement of the regulations was desirable in the interests of the producers. After the previous day’s discussion there was no doubt that so far as the South Island was concerned the industry- was solidly behind the department in the enforcement of regulations. If any fault could be found with the department it was that it had not been hard enough in carrying out its duties Regulations should now be enforced to a degree of firmness that would not permit of slackness. When the good of the whole was affected the regulations should be enforced for the good of the whole body for which they bad been created. The regulations to which lie had referred ensured accuracy of payment to the supplier, the manufacture of the best material, and the best value to the people who ultimately bought the manufactured article. It put everyone on the same footing. There was probably no other process which provided a wider margin of opportunity for manipulation than the conversion of cream into butter A fractional divergence from the regulations could make a very big difference. The alternative included in the remit . had been inserted as a protes* against any let-up in the enforcement of the regulations. If they were discontinued the industry would be put back more than a decade. Mr 11. Meredith (Waimate) seconded the motion. He said that it was known that the regulations were broken every day, and the offenders had a big advantage over those who were trying to turn out the best product. The offenders were, perhaps, able to pay a bonus, but it was not always the company which paid a bonus that gave the best return. Mr Saiidilands (Teinuka) opposed the remit.

Mr E. Beatson, a Government inspector, said that grading to-day was carried out on a fairly uniform basis. He was satisfied that the grading this year had been carried out on a better basis than ever before. The benefits of grading had been very- great. It was now difficult to obtain 1 per cent, of second grade in any dairy factory, whereas a few years ago 50 per cent, would be found in some cases. The department was endeavouring to bring about uniformity throughout the province, and it was succeeding. The remit was adopted, only Mr Sandilands opposing it. COLLECTION OF CREAM. The Farmers’ Dairy Federation, Ltd., forwarded the following remit:—That the department be requested to promote regulations that will put an end to the present costly overlapping of cream collection by limiting the boundaries within which any butter company shall be licensed to operate, or such other means as may best commend itself to the industry. Air Fisher, in moving the adoption of the remit, said that it had to be admitted that there was a considerable waste of the producers’ money in cream collection. The producer, as in other cases, was the man who had to pay. It might be said that the companies themselves could get over the difficulty. There were, however, interests in the industry which would not mix because their ultimate goal was not the same. In the co-operative movement, for instance, the aim was to make the greatest return to the producer, but the object of proprietary companies was not the same. The competitive spirit was entering into the co-operative movement, which would be strangled if competition were allowed to go far enough. 'lt was preferable that reforms should be voluntary, but in practical experience that was not possible. The' penalty attached to overlapping was additional cost and a smaller return.

Air C. R. Smith seconded the remit. Air Templeton, manager of the Taieri and Peninsula Alilk Supply Company, said that 200 Southland farmers were sending their eream to Dunedin. This showed that things were not just as they should be in Southland. Air C. P. Agar (Canterbury) said that there were five factories in Christchurch. How could boundaries be fixed for them? Air S. Smith (Canterbury Central) said that the conference was running its head up against a brick wall. The matter was in the hands of the farmers themselves.— (“ Hear, hear.”) Air IV. Al. Singleton, of the Dairy Division, said that he hoped that something could be done in reducing the cost of cream collection. The department had gone deeply into the question, and it had been found that the unnecessary cost amounted to from £30,000 to £35,000

yearly. The companies themselves, in view of the present conditions, were trying to get together and bring about an improvement. . . He instanced a case in which five lorries travelled down a road where there were six suppliers. The remit did not open up a new question, but there were severe difficulties. The motion was declared carried on the voices. A show of hands was requested, the voting being 23 to 3 in favour of the remit. CONTROL IN’ NEW ZEALAND. The Farmers’ Dairy Federation, Ltd., submitted the following remit:: — - “ That compulsory control in New Zealand of dairy produce sales be recommended.” Air Fisher, in moving the adoption of the remit, said that what was wanted was control ’of some sort to stop the dry-rot that had taken place, in the butter industry. The loss which producers had suffered individually was incomputable. No system could give worse results than that in vogue at present. It was within the power of the producers to do something to bring about an improvement. This remit should be an expression of opinion by the industry and a mandate to managers that they must get together. Air C. R. Smith, who seconded the motion, said that he represented a company in the Dunedin market, and its business at present was "putrid.” He claimed that the people of New Zealand should give some shelter to the producer. Mr Agar said that South Island factories worked under treaty arrangements, but 95 per cent, of the factories would not honour their undertakings. Those who had stood out for the producers had seen their sales slip down because of secret rebates and concessions given by those who were not working in the interests of the supplier. If the other fellow was cutting one out the result was that one had cither to go out or retaliate. The managers were in the course, of getting together to bring about a settlement in the price of butter. If the remit were carried all efforts to get together would be nullified.

Air S. Smith also said that the carrying of the remit would hinder efforts to reach an agreement. In view of the statements of Air Agar and Mr Smith Air Fisher withdrew the remit. THE BRITISH MARKET. Air A. C. Ross, formerly of Dunedin, and now chief dairy instructor in Taranaki, who spent_ some time in England as a grader of New Zealand produce, delivered an address on “New Zealand Dairy Produce as seen on the British Markets.” Air Boss said that during his sojourn in Great Britain he had been greatly struck with how our produce had worked its way into the homes and trade of the British Isles, and how it had established a goodwill more favourable than that of any other country. It should be the aim of every producer in this country to safeguard that goodwill by sending nothing but the very best quality of butter and cheese; that, was to say, a well-manufac-tured and finished article that gave the wholesalers and retailers of the United Kingdom pleasure in handling it. The general opinion was that New Zealand butter was the most reliable of Empire butters, most brands being relied upon to provide a uniform line, and large quantities of our butter being bought on the basis of the grade designation. While most of our butters were clean and apparently quite sound in character, there were some which lacked the true butter flavour and were, generally, styled as neutral and uninteresting. There was just that lack of milk bouquet or aroma which would make it more attractive to buyers. Though some of our butters were dull and insipid, yet, owing to some dormant character, their standing up quality, after distribution to the trade, was excellent.

A source of complaint wag from the use of Swedish timber, as very often the surface of the butter packed in ' hese boxes showed taint, and retailers stated that often they had to cut away the outside of the,butter because of this fault. Under the Dairy Board's supervision the dairy produce received better care and handling on arrival at the British ports than was the ease in former years. The marketing of New Zealand butter in cartons was being undertaken by some firms in a business-like manner, and there was every prospect of an extension of this method of marketing New Zealand butter. Advertising was playing a big part in drawing the attention of the British public to New Zealand dairy produce. It was essential, however, that our quality should back up the advertise meats. “ New Zealand contributes the largest percentage of cheese imported into Great Britain, so that our cheddar is the chief cheddar sold by quantity in the retail shops,” continued Air Ross. “ Canadian and English occupy second and third place respectively. Our best quality cheese has always been outstanding, gives satisfaction, and often commands a premium io price. In the past New Zealand cheddar was considered of a high uniform average quality, being mild and clear of flavour, though a frequent complaint against it was its loose and open texture, which was regarded as unattractive, making the cheese liable to break up when cut and tending to dry up very quickly. A serious fault attributed to the looseness of texture is that mould spreads more rapidly throughout the cheese, and a number of our coloured cheeses when stored developed a bleaching in colour around the looseness. It is recognised that this loose, open texture is a weak point in our cheese and tends to lower ruling market values. “The prevalent opinion is that New Zealand cheese would be improved by a longer period of storage before being exported, thus giving it more time to develop cheddar flavour. I am strongly of the opinion that New Zealand markets its cheese far too green. Alerchants have complained that there has been a gradual slipping back in quality for some tim-, and especially during the 1929-30 season. On arrival of the spring-made cheese o c 1929-30 season and its delivery to the trade trouble was at once experienced with some of the brands that were of poo.quality, the majority of these being stand ardised. On examination these brands were found to be showing weak, pasty, and doughy bodies, and very loose and open texture, with some fermentation and Sholes. Tn some instances. aft'*r cut and exposed to the air. tbev turned sour and vinegary in flavour, and

at once became a serious loss to those retailers handling them. This iinmedi ately Drought a certain prejudice against standardised cheese, and forced some retailers to go on to Canadian cheese to try and save their cheese trade. “Those factories which neglected to make the best quality are responsible foi this prejudice and for the lowering of tile values of New Zealand cheese on the British markets last season.”

After dealing with faults in cheese, Mr Ross said they must know that the final judge of all cheese was the consumer, and the consumer liked a clean flavour, firm body, close-cutting, meaty, buttery cheese. If they were to maintain their position on the cheese market it was for them to give the people of Britain what they wanted and not what New Zealand producers thought they should have. It was absolutely necessary for them to aim at the very best quality. To get and maintain that best quality it was essential that much of their milk supply should be improved, and that only good starters should be used.

First and foremost the factory manager should have absolutely a free hand as to the quality of milk taken in, to refuse all that which, in his opinion, was unsuitable for the manufacture of good quality cheese, and to be allowed to make the cheese to the very best of his ability, quality ■ being the main consideration. Whether they liked it or not, they had got to get away from the quick method of making which a number of the factories had carried out in the past. This meant, first, they got back to a sound milk supply, and, secondly, makers would be allowed to put the best possible work into the making of the cheese and thus produce a cheese of the soundest quality. Some raise this question. “Is it worth while? ” We say “ Yes.” They had to retrieve their reputation on the British market and strengthen it in every way. As one who had had an opportunity to view the general position from both sides of the world, he was firmly convinced that the secret of success in our dairy produce business of the future was going to be the placing on the British markets of an article of quality and suitability. Air Ross, after answering a large number of questions, was accorded a vote of thanks. ' QUALITY REPORTS. The chairman moved the following remit on behalf of the Dairy Control Board: — “That it is desirable that the dairy division should accede to the request of the Dairy Produce Board that the board should be supplied with complete copiep of the quality reports at the board’s London office.” The chairman said that the board considered that it would be much easier to bring about an improvement in quality if it could approach the management of factories whose product was lacking in quality. Air John Dunlop, a member of the board, who seconded the motion, said that this was the only breach between the division and the board. Alost of the factories in the south were treading the narrow path of righteousness, but in the north some were making a very broad track. The information would not be divulged. Air Singleton said that from 1500 to 2000 reports were received annually, but they were regarded as confidential between the companies and the department, j The department would release the reports if the companies were willing. The chairman said that if some companies were damaging the industry the privacy should not be allowed to exist Publicity would be a big factor in making the companies do better. The remit was unanimously carried. FARM DAIRY INSTRUCTION.

The executive submitted the following remit:—“That this conference reaffirms its previous resolutions approving national farm dairy instruction.” Air Singleton said that it had been thought that the stage was set for this matter 12 months ago, but in view of the conditions it had been allowed to stand over. If similar resolutions were passed this winter the position would probably be cleared up as far as the Government was concerned. The cost of employing GO officers in a Dominion-wide scheme would amount to 2s 6d per ton of butter and Is 3d per ton of cheese. If milk grading were introduced that should go hand m hand with cream grading and farm dairy instruction. The remit was adopted. TEMPERATURE OF CURING ROOMS. The executive submitted the following remit: —That curing rooms be held at a minimum temperature of 55 degrees Fahrenheit while containing cheese that is to leave the factory at less than one month after manufacture. Mr Fisher asked whether it would necessitate the installation of heating appliances. Air Singleton said that he thought that would be necessary. A great deal of spring cheese was not kept at a sufficiently high temperature. What was proposed in the remit had been done in Canada years ago. v Air E. A. Fades (Edendale) said that it might also be necessary to install cooling apparatus. If it were going to improve the standard of New Zealand cheese what the remit proposed should be carried out. He suggested, however, that this might be done in cool store. Air Singleton replied that it should be done immediately. The idea was to keep the cheese at as high a temperature as possible without interfering with its condition. The motion was carried. CLEANER MILK. The following remit was also submitted bv the executive:—“That a new regulation be gazetted stating (1) that all dairy utensils used by suppliers shall be properly- washed and treated with boiling water’ or steam at the farm or at the dairy factory; (2) that no whey or hot water shall be carted in cans which are used for the carrying of milk or cream to dairy factories.” A delegate stated that these requirements were being observed already. The chairman: But they are not doing it up north. Air Singleton said that if this were endorsed it would help the department to get cleaner and better milk. Several members drew attention to the fact that whey was being carted home

in the cans, and stated that this should bo prohibited. The motion was carried. CO-OPERATIVE MARKETING. The following remit was forwarded by the Southland Farmers’ Union:—“ That this conference approves the principle of co-operative marketing of our dairy produce.” Mr O. E. Neiderer. in moving the adoption of the remit, said that the GovernorGeneral (Lord Bledisloe) had frequently drawn attention to the fact that New Zealand was behind the times in her marketing conditions. Some uniform system would have to be adopted. Air D. Routledge (Invercargill), in seconding the motion, drew attention to the fact that Danish producers under a co-operative system of marketing were receiving more than the New Zealand producers. lhe motion was carried. GENERAL. The chairman’s honorarium was fixed at 100 guineas. A otes of thanks were accorded the directors and staff for their work during the year.