THE DAIRY INDUSTRY.

Taranaki Daily News, Volume LVII, Issue 22, 16 June 1914, Page 6

THE DAIRY INDUSTRY.

THE INCREASE IN PRICE OP LAND. IS IT JUSTIFIED? Said the chairman of the Bank of New Zealand at the annual meeting on Friday:— The exports of butter and cheese, the latter particularly, show a very gratifying expansion. The quantities exported during each of the past seven years compare as under:—

The exports of /elieese have more than doubled in five years, and there is a satisfactory increase in butter. The production of cheese has been stimulated by the excellent prices ruling. The defect of last season's shipments is said to, have been that too much moisture 'Wd been left in it. This is a blemish which manufacturers can easily remove. Jo,► The limit of expansion in the dairy , .-industry is not in sight, and while .njiceij .remain good, growth will be certaih, The opening of the Panama Canal, xM reduction in tile American tarill, and the revision/of the American currency lawp;, will combine to encourage trade .beiycen , Australasia and the United States. " There will be many difficulties to-' l)o faced in pioneering the exports of fNevt Zealand blitter, clicese and frozen ■ inept to; America; tyut these will disapas our products become 'better . known. Growth irf the trade is obvious--ItyWticipated, as larger and swifter vessels- are to be .'placed shortly on both , ,thtj Vancouver,and flan Francisco routes. A direct'service has also been established between Australasia and New York Via' Cape Horn. Apropos of our extending markets, I would say that it is to be hoped that Bhippers will be punctilious as regards tilt' character of the produce sent forward, and that the Government inspectors and graders will be rigorous in. ,%;ir. requirements, so that the Xetv 1 Zdaland output may be maintained at a high' standard, thus earning a popular-ity-that may he well deserved, and scouring a consequent command of a ready and remunerative lmirket. It is in this : wdy- alone that a satisfactory and per'l Jrta'nent trade can' be developed. The importance of this.question, from , ■■fcjjle, standpoint, of, the "producer, is very forcibly borne'in'upon us when we rcvie(v the values'tV which the pastoral ivrid arable lands of the' Dominion have i kiuxNl attained. , ! bepn„-engag^l l( iu an endeavor o arrive at tlie exient of the appreciafo'n 1 Which lias 'taken place in values fdfrfiilg the last twenty; yeaivt and have Hbeen generously, ragpigted in any' effort njstworthy,.autiiqrjiti.es in different j narts of the Dominion, for whose aid I TimvS 1 to acknowJidgfc'my'indeoted-ness. ! The subjeot is onE'itito which so many enter that it is inipracto. arrive at a. uniform generalisbut. the. figures that have been j firfnished to hie indicate that, as a rule, '' allowing for variations necessarily I'-incidcntal to local conditions, fchd incre'(jflit'lrt in land values during the last j twenty years has been generally greater • than has been justified by the higher 'returns obtained in later years as the rrcsult of improved markets, better "■methods of working, etc. For example: Taking the dairy in- ,| dustry, which was in its infancy in 1894, j,'fre' find that land in favored districts, •I which in 1S!)4 could -have been bought lat ifj'Oin £0 to £ls per.'acre, is now '.Belling at from £2l) to £75 per acre, jan increase of, say, per cent. The i gross yield per acre has, however, not ''aicreased in a corresponding ratio, being !' only 130 per cent. more, to-day than it was then. . -•.< Land hunger and cam petition ere forcing values up to a point which leaves no margin for any material increase in cost oi production or decrease in sale .price of (flic product, and as the cost of production does not seem likely tc diminish, but rawer to increase, no efforts Should be spareu to maintain the excellence of the prouiwt, <9O that a drop in prices may not occur as' a result of deterioration in quality. 1 The increment in the vaiue of sheep lands .has, generally speaking, not been so :li.eavy proportionately as that of dairy land. Rouglily, the value of such •land lias about doubled during the twenty years, but tlie better ai'erage prices ruling now, and the. improved prospects of the wool industry,' quite justify the increase; and sheepfamrers, working under normal conditions, have earned in recent yeare a .better .return on their invested capital than tliey were obtaining a decade o.r more ago, With a view to arriving at ;tn approximate idea of tihle extent oE tlie aggregate appreciation in value that has taken place in the country lands of the Dominion, I nave taken out tUb capital valuations of country 'amis at ISA), 11)04 ana 1013. They show the following comparisons: 1891—North Island .. £30,255.815South Island .. 4C,5ti1,34Q

! £So.ai,s,i(i7 1804—North Island .. £<i<S,{HJß,o4li .South Island' .. 54,008,100 Increase, 42.12 per cent. 1913—North Island .. South bland .. 87,2;jyyy» £2lB/282,038 Increase, 78.90 per cent. The greater part of the yrnv.ri.!: \:u, it will be observed, taken plate! in tlhe, Nonth Island, XJe appreciation there between 181/1 and I!W4 was eipial to 70.58 per cent, and .between 1004 mid IDIIJ to D.i.W per cent. In the SoutJh Island tiie increase at the two periods was 18.11 per cent and 58.02 per cent respectively. The percentage of inc.reu: o for botli Islands combined is, as mention 42.12 between 1801 and IHO4 and 7;1.0li .between 1004 and 1013. The actual values of the country lands in the North and South Island i-ombined are, as I ! liave mioted: £B.-1.818.107: 1004, f L21,91i0.iri2; 1913. £218282.038 . Inehidiiijr boroughs and town ilHfricts, the totals aro:--'-ln IS'll. £122.22:").f>20; 1004, £152,70(>.241; 101;!. I £:;-li:.,V,:).7:>S. ! Much of fhe iii-'V.,.e is dr.o to aelu.i: outlay (Mi intprovraieiU- ■-:.-.eai'Mie.'. sowinaior jjorlum is iecr, a- ' ImuiiA a!>e,r,l ' !>■•'settlement, iuij ;.!v :ii'/uor"y;cH re--1 siihi;!- i;...u i.i.i.rovi.d methods 'of \v„rkI iie.r and belter uric,■:. {.Viriv the values j l-i l!iud--dairy'in<-' land arljn-liii.!.' elvis al such a. level as I haves no rociin for the "-lip-hoil" fe.v----i mer. If tin- inda-irv is to .•..ntimf ! p-.iya.'m'e. with hind e.t. such lii;.;li value.. • scientific, principles must, be followed '■ and the most approved .methods adopted, in order that the very best returns on thk' labor and capital employed may he realised.

Voar em led' Butter. Cheese March : 31 cut. ewt. .1808 2-71,323 282,073 1909 275,950 310,085 1910 321,975 441,884 1911 387,849 450,371 1912 327,282 403,010 1913 309,133 834,173 1914 395.1(39 742.371