DAIRY INDUSTRY SUFFERS SET BACK.

Shannon News, 29 September 1925, Page 3

DAIRY INDUSTRY SUFFERS SET BACK.

COLD SHELL REDUCES YIELD. EXPORT PRODUCE HELD UP BY STRIKE. Tile utmost anxiety exists in the minus of thuso in touch witli the situation as to the immediate future of the Uairying industry in New Zealand.

Tins position has arisen out of a commnaixun uj. unexpected circumstances that have reached their culminating point together, vvnat might be termed internal factors are the long spell ,oi bojstorous and. unseasonable weather, The exhaustion of winter fodder, and tile scarcity of green feed for the . cows, while the disquieting external element is the protracted seamen’s strike, which will, if it continues, iprouaoly result in a commercial crisis. August—the opening month ot uic dairying season—presented, this year, a bright prospect to dairy farmers everything being well forward and even better than previous years. The London market promised a. very satisfactory return and the cows camt iu in good condition. Unfortunately, however, the weather became cold and stormy and this spring is now on record as the worst experienced for at least twelve years. The unfavourable climatic conditions retarded the growth of grass and consequently supplies ol "hay became short. The lack of food naturally had an effect on the condition of the cows and milk production did not increase as it did m other years and in some cases fell away instead of steadily growing until it reached the flush in January, in one case—probably an extreme one—a tanner states that lie is getting a smaller yield from 25 cows than he got from 15 in August.. The “pinch” is being felt practically everywhere in New’ Zealand, as is indicated by the fact that) the grading stores report the amount of produce handled last month to be 20 per cent, lower than for the corresponding period last year.

THE LOCAL POSITION. The following figures show the intake of milk at tlie local creameries for the months of August, 1924 and 1925. August 1924 is shown in parenthesis;—Levin factory 8983 gallons (21,453), l-leath e idea 15,411 gallons (20,006)’ Ihakara 20,809 gallons t,22,325), Oiinu; 5165 gallons (10,220), Kimberley 14,364 gallons (15,478). It will be noticed that the milk supply is much Tess this year in every instance, but it must be remembered that all the deficiency cannql be debited to the weather. Many farmers with large herds and who- are connected up wdth the hydro-electric power find it more convenient to handle the milk on the farm and this change over accounts for a part of the difference in intakes. The Levin Dairy Company’s butter output, however, furnishes a better basis of comparison for the seasons. The butter made in August, 1925, shows a 6 per cent, decrease on the output for the same period of 1924. September shows a bigger discrepancy. For the three weeks of this month the butter made is 15 per cent, lower than for the first three weeks of September, 1924. It is rather unfortunate that the season lias proved comparatively had and the set back winch tlie cows have had will not tend to lighten things. £1,009,000 TO BE PAID OUT ON OCTOBER 20. Many disquieting rumours are current concerning pay-outs by dairj companies in case the shipping holdup should be prolonged into next month. Advances will continue to he made by agents or banks and there ts no need to fear any immediate hardship. Should the trouble continue beyond next month the position would tie very much different, but such a contingency cun hardly be imagined. The worst feature of the shipping strike, as seen by the commercial community at present, is the possible curtailment of the spending power of the primary producers. In tact, tlie idea is quite prevalent that, should the strike continue, the'dairy companies will have to* cease making advances to suppliers with correspondingly disastrous results. This is, of course, an entirely erroneous impression. It is. quite possible in fact most probable, that advances to suppliers will be Slightly reduced, as. tlie advances will be on October 20, and should the shipping hold-up still continue tlie directors of dairy companies will approach their agents with a view' Of obtaining ads'anccs on butter and cheese (sold or to be consigned) against store-warrants, instead of the usual shipping documents. Store warrants are issued by. the freezing companies which hold the butter or cheese and finance is arranged on these warrants. It is possible that some agents may not he inclined or able to finance large quantities in this manner, but even so, dairy companies would have no dil'fic’ully in arranging finance with their respective’ hanks. As a matter of fact when finance Iras to be arranged against store warrants many companies prefer dealing with their bankers, rather than with the agents. To obtain an idea of tlie seriousness of factory pay-outs, ,it need only be pointed out that on October 20 next, something like £1.000,000 will be advanced by New Zealand factories to their suppliers. This amountwill practically be doubled by November 20 and by that time the question ol finance anight, have an entirely different aspect. • SERIOUS ASPECT OF THE STRIKE The financial effect of the shipping liold-up thus does not wrorry datr> company directors very much, but, what is'of more moment is the pilingup of butter and cheese in cold store and on ship-board, and the inability in supply the London market, when it is so much in need of supplies that tire price of butter has reached 218 s to 2205. That of course, may be partly due to the scarcity resulting from the non-arrival of early New Zealand shipments, but, it is realised in the Hominion that Ihe earlier supplies reach London the better as they then get, on to a bare market before the Continental season begins. A good deal of Chat advantage will be disI counted bv the failure of the ships to

get away from 'New Zealand and the probable duration of the strike is therefore 1 a subject of first importance to the whole, dairying industry.