THE DAIRY INDUSTRY.

Taranaki Daily News, Volume LVI, Issue 3, 4 June 1913, Page 6

THE DAIRY INDUSTRY.

1 NATIONAL DAIRY ASSOCIATION.

NINETEENTH ANNUAL REPORT.

The nineteenth annual report and bal-ance-sheet of the National Dairy. Association of New Zealand, for the year ending April 30, which is to be presented at the annual meeting of the Association to be held in Palmerston North the 17th congratulates members on the continued progress made, indicating a growth which was steady and likely to be permanent. There was a net profit on the year's working of £437 19s Id, and the amount at credit" of profit and loss was now £2314 8s 7d. Business generally had increased, the past year having been a record one. Marine insurance for the season had totalled . £840,000. The membership was now 138, as against 143 for the present year, the decrease being attributable to members declining to accept the present scale of subscriptions. As showing the steady progress the industry was making throughout the Dominion, 35 factories—B butter and 27 cheese—were registered, as against 28 for the previous year. In Taranaki one butter factory and six cheese factories were registered. ' •. . ANTICIPATIONS AND EXPECTA- ' TIONS. A brief review of the season states that it was noticeable that as the 19111912, season was remarkable for the high ran^e 'of'pricpS obtained for,' New Zealand dairy .produce, this lyoulfl probably,be. remembered as fruitful of great anticipations, but resulting in unfulfilled expectations. (a) Adverse climatic conditions prevailed throughout the dairying season, which was reflected in a shrinkage of exports. A somewhat cold and backward spring, combined with exceptionally dry weather in the autumn in the northern; part of the North Island was responsible for a diminished output, (b) Whilst the total export of butter had been maintained, equal to nearly 6% per cent., over last year, principally due to the development in the Auckland province, there was a substantial gain in the output of cheese of 28 per cent, over the season 1911-12. The total quantity exported was 18,286 tonf of butter and 32,3*28 tons ; of*cheese. (c) For the first two months of this season 8278 boxes of butter and 8481 crates of cheese were shipped to London in excess of that exported for the same period last year, (d) As quality was a determining factor in creating price, this feature sliould receive first Consideration. It was well, therefore, to honestly enquire if the reputation of our goods had been maintained. So fa!r aia butter was concerned, it had been up to the standard. This must be regarded'as satisfactory, though many leading butter factories had this season turned their attention to cheese. QUALITY THE .FIRST CONSIDERATION. In connection with cheese, complaints had been many and pronounced; whether well founded or not must, be left to the decision of the grading staff, who were well qualified to pass judgment. Unquestionably the conditions ;;Ujjs9f which the 'raw material was being obtainedland, 1 and, handled were undergoing an evolution, arid if. it were demonstrated that the flavor of the milk was materially affected to its disadvantage, it was incumbent on those, controlling the industry to remedy the defects. It.might be necessary to adopt curative methods gradually that will, have a beneficial effect. The Dominion's good name and reputation for producing a firs,t-class artiole must be maintained at any Cost.

MARKET CONDITIONS. Referring to market conditions, the report states that the prices realised had been disappointing from a shipper's standpoint. Butter and cheese should have returned at least 5s per cwt. higher. The reasons assigned by the trade, i.e., the increased sale of margarine, overproduction, indifferent quality of the imported article, phenomenal make of autumn cheese and the mild winter in England, and lastly the quantity of butter stored in the United Kingdom at the beginning of our export season, were hardly convincing. The total imports of butter and cheese from all countries to the United Kingdom during the 26 weeks corresponding to the time that the bulk of our produce was on the English markets during the past five years was as follows:—1909, butter 103,694 tons, cheese 50,154 tons; 1910, 99,883 and 55,692; 1911-, 115,509 and 54,804; 1912, 103,212 and 50,648; 1913, 98,'132 and 52,459. It can, therefore, hardly be .urged that heavy supplies influenced prices, when one considers the annually increasing demand, because it will be seen that the imports of butter in 1913 were 5080 tons less than in 1912 and 17,377 tons less than in 1911, i Cheese this jear exceeded 1912 by 1811 tons, but was les* than the two previous years. From a statistical standpoint values should have been higher, as never perhaps in the history of England had the spending power of the people been greater, due to the abnormal increase of trade. The disparity between Danish and New Zealand was never greater for many years, whilst the margin between English and New Zealand cheese was well maintained. Naturally it woultl be expected that increased sales of margarine would have affected Danish supplies. The forward and short sales of New Zealand produce had afforded special opportunities for influencing the markets in a downward direction. Agents had this year a golden opportunity to return clients better results. Unfortunately, the position had been used by some prominent firms to completely reverse their policy, to the disadvantage of all consignors. The future method of marketing produce, required serious consideration and combined action.

OPENING NEW MARKETS. It had, therefore, been a distinct advantage that both Canada and South Africa had increased their imports of New Zealand produce, and thus reduced the quantity available for, the English market. In 1911 8008 boxes of butter were shipped to Canada antl 12,998 to South Africa. The figures in 1912 were 52,028 and 563fi and in 1913 117,493 and 22,781. South Africa also took this year 3049 cases of cheese. Referring to the export of cheese to the English market, it is pointed out that in 1904 Canada exported 98,300 tons, as against 72,000 this year, whereas in 1904 New Zealand exported 4111 tons, as against 32,000 this year. As showing how the manufacture of cheese is moving its sphere of influence to other countries it points out that in 1903 the total imports from foreign countriesHolland, Italy, Switzerland and the United States—was 39,099 tons, which in 1912 had fallen to 19,063 tons. Referring to a remark in the Trade Bulletin of Montreal that "New Zealand bad got pretty well to the length of the tether in the matter of cheese production." and quoting an opinion that New Zealand cheese was not possessed of the fine quality it had a few years ago, and that on that account its consumption lmd fallen off, notwithstanding its cheapness ns pomDared with Canadian, the report continues: "In the light of these facts, that vear by year the Canadian export is declining, and that in ten years New Zealand has increased the export of cheese from 4111 .tons to 32,000 tons, ami will probably in the next decade double the output, such oninions are worthy of consideration. Tf New Zealand captures

the cheddar cheese trade of the United Kingdom, the factors determining the position will not be quantity, but quality."

IMPORTANCE OF THE INDUSTRY. The volume and value of the trade to New Zealand is year by year becoming more apparent, and. the export period for dairy produce is yearly being extended. During the year the dairy produce exported was valued at £4,000,000, whilst the frozen beef, mutton and lamb exported was valued at £3,'694,170. Wool was now the'only product thatt kept dairy produce from being the Dominion's premier export. THE COMPETITION OF MARGARINE.'

Butter was finding serious competition from the increased sales of margarine, the demand and enquiry jfor which was increasing daily. To-day it received a prominence in retail establishments that was unknown a year or so ago. For the twelve months ending June 30, 1912, the total imports of margarine had increased by 15,090 tons, an increase of 33 1-3 per cent. No records were available of the increase of this article made in the United Kingdom.' The process of manufacture had so improved that it was almost impossible to (JJetect it from genuine butter. Steps were - being taken in the Commonwealth, and elsewhere to obtain legislation in the United Kingdom to prevent the incorporation, of coloring matter, in its. manufacture,.'which made it resemble butter in- appearance. This reasonable request had been opposed by certain vested' interests-.. AMERICAN MARKET PROSPECTS. •If the proposed; tstriff legislation became law in the United States of America, its provisions would probably place ' on the free list all farm products aB bej tween Canada and the United States. The abolition of the present high Customs duty would'give an enormous impetus to the consumption in the United States of Canadian cream, butter and cheese, which would decrease competition on the English markets. As Canada and New Zealand were practically the only countries that exported cheddar cheese, the,prospect before New Zealand makers must be considered satisfactory. SELLING STORED BUTTER. The practiqe of selling butter that had been held in cold storage for some time as . new season's butter—there being no clear indication on the box that the contends were made several months,before—was one that might be injurious to the reputation of . New Zealand butter, and a matter upon which members might express an opinion. NEW SHIPPING CONTRACT. The. report also refers to the visit of the secretary to Canada, in order to report on the prospects of trade there, and states that :the contract with the shipping company had been exended for a further five years at the present rates of freight. The important alterations in the contract contained the following provisions:—Direct fortnightly shipments of dairy produce'from Auckland to London during the months of October to March, inclusive; a weekly shipment of cheese from -Wellington to London, to meet the increased quantity coming forward for shipment; shipments of dairy produce from New Plymouth t 0 connect with the oceari steamers* to be carried in insulated stealers. f