DAIRYING INDUSTRY.

Taranaki Daily News, 21 June 1917, Page 7

DAIRYING INDUSTRY.

'REVIEW OF THE YEAR. NATIONAL DAIRY ASSOCIATION'S REPORT, Interesting references to the dairy industry of the Dominion are contained in the annual report of the National Dairy Association of N.Z., Ltd., presented at the annual meeting of members of the association, held at Palmerston yesterday. In a retrospect of the year's work, states the report, climatic conditions are probably the important factor, that makes for success or failure, and no review can,be regarded as complete that overlooks this essential. The dairyman, because of the character and dependence of his work, comes into close daily touch with the ever-changing conditions of nature that either retard or promote the industry. If such aro favorable, then the issue is not in doubt, hut should it prove otherwise results are disappointing.- Speaking broadly from this'standpoint the year has been exceptionally discouraging viewed as to production, The season opened early, the milking herds were in fairly good condition, rain was plentiful and the pastures abundant. There was every indication so far as the North Island was concerned for a long and profitable season. Unfortunately during the first three months of 19.1*7 in consequence of continued dry weather in the southern dairying districts of the North Island, the conditions were so unfavorable to the pastures that the milk supply diminished rapidly. The Wairarapa, tho coast line from Wellington to Palmerston North and Taranaki have suffered severely. Consequently in these , portions of the Dominion, notwithstanding the enhanced value of dairy produce, Teturns will not compare favorably with previous seasons. Diminished quantity with higher prices is not so advantageous to the dairyman as increased output and fair average prices. On the other hand, the iHawke's Bay and Auckland provinces, which pxe usually dry in January to March, have had an abundant rainfall and feed has been plentiful. In this respect the season has been phenomenal and the output probably above normal. During the second week in April fine rains were experienced generally in the southern districts, grass has freshened, and, provided severe frosts hold off, I the autumn and winter pastures are assured. FREIGHT CHARGES. During the export season an increase was made in ocean freight on new season's make of cheese from eleven-six-teenths of a penny to %d per lb net weight. No alteration was made in the i freight of butter, namely, 3s 9d per box. Then, on November 15, 191 C, the association was advised that the Imperial ■Government had under consideration a further advance as from the above date. Fortunately the proposed addition to the present heavy charge was not confirmed. GOVERNMENT ACTION. ■ i The method in which the National Government has dealt with butter and cheese during the year needs more than a pasing reference. Without recapitulat ing the details of the butter scheme proposed for tho Board of Trade and adopted by the National Government to fix the wholesale and retail prices of butter in the Dominion in October, 1916, and thus regulate values so as to reduce the cost of living, it is only necessary to point out that it was an ill-advised proposal, at variance with economical principles. Admitting that it reduced the cost of one article nmongst many to the consumer, it was a considerable loss to another section., the dairymen of the Dominion, who deserve well of the community. If it was essential to tho comfort and well-'being of the ft ; zens of this Dominion, who have enjoyed prosperous times during the last three years, and who shoWd be- provided with a cheap commodity of food, then it was the duty of the National Government to have given effect to this policy on business lines. In the early part of the session, if a fair and reasonable price had foeen paid for a quantity of butter, tie Government could have retailed \t without lo?s for cash and thus' controlled retail price*. Tf the scheme was inaugurated to benefit every consumer—rich or poor —then the State, with its resources, should have stood behind the people, shouldered the burden and not compelled a section thereof to be unfairly treated. CHEESE PURCHASE. Now, in regard' to the negotiations as 'between cheese factory representatives and the National Government, acting on behalf of the Imperial authorities for the purchase of the New Zealand output of cheese for the season 1016 and 1917, it may he desirable to place on record the steps adopted. On or about July 14, 1910, tho National Government convened in Wellington a meeting of cheese representatives from all parts of the Dominion to consider a proposal from the Imperial authorities to purchase the season's output.. After full discussion it was unanimously decided by the meeting to offer the cheese at B%d per lb f.o.b. At the conclusion of the above interview a committee was appointed to watch the interests of producers. After considerable delay, the offer made was declined by the Imperial Board of Trade. Then, on August 18, 1910, the National Government offered to purchase 8000 tons for Imperial war purposes, at a less figure than tho above quotation. This proposal was not considered reasonable under the circumstances. Early in January, 1917, the National Government, acting under instructions, convened a, further meeting of delegates throughout the Dominion, and it was finally-decided to accept 9}d per lb f.o.b. for all cheese the property of the makers then in store, and that would be manufactured up to July 1, 1917. The sale was confirmed by an Order-in-Council, dated January 10, 1917, made under section 47 of tho Cus- | toms Act. '1913, as extended by section , 24 of the Regulation of Trade iind Com- | meree Act, 19M\ prohibiting the export I of cheese from the Dominion. Probably . some factory directors and suppliers still consider the sale a sacrifice, and thatmore could have been obtained in the open market. The point to settle i 5, had the exporter an 'open' market? | Looked at from this standpoint the arj'rangement waß advantageous to the veni dors; it provided a handsome and asl sured return at a remunerative' figure, . placing the responsibility of arranging a transport on the purchaser, and the s buyer was benefited inasmuch as it secured an ample supply to meet require- ] ments, at a lower price than could be ob- [ tained by purchasing the same article landed in the United Kingdogv.

Between October 1, 1916, and December 30, of the same year, eleven shipments of clieeße were made to the United Kingdom in the ordinary course of business. These consignments, on landing, were requisitioned by the Imperial Government. Evidently the latter had determined to maintain control of the new Beason's output. QUALITY OF PRODUCE. In regard to the general quality of dairy produce exported during the past season, that of butter has been equal to the standard of previous years. In body, moisture and texture it has been uniformly good. As to the complaints frequently received from London of "iishiness," there has been in this direction a distinct advance. During the season 1915-18, Buch complaints were less as ♦ ompared with former years, and for the one now under review they have practically ceased. No doubt this improvement is due in a- great measure to the careful mid efficient supervision exercised toy the director of the Dairying Division and his Capable staff in the manufacture of butter. Whilst it is gratifying to know that New Zealand 'butter '' " maintains a high reputation in the lif l ' <l Kingdom and compares favorably '.the best imported, there is to-day ■ ...clc of that fine, nutty flavor in mueh ut#our butter which was its characteristic some years ago. In reference to cheese, it must be admitted that as the season advanced there has been a distinct advance in quality. Owing to the delay in shipment, it hecame necessary to hold cheese for several weeks in cool storage. Such storage <was not always of the best, and the manufacture was of necessity modified to meet the altered conditions. Experience demonstrated that cheese with a 'firm body", close texture, and less moisture stood the test of heat better than those lacking such qualities. The general use of scale boards in packing is being adopted by the majority of factories, and the extra cost attached thereto is being repaid by the improved appearance and condition wheii landed. PRICES. The first important shipment of the new season's make of butter went forward on October 6, 1917, per g.s. Rimutaka, consisting of 29,! 1 05 boxes. On arrival, New Zealand was quoted at 21i to 212s for salteu, anu .msalted 2145. From then onwards the price fell rapidly until the (bottom was readied about January 27, 1917, at 1945, then values ir.weasjed and reached 280s early tin March. Since then wholesale prices have been fixed toy the London Food Controller. These high priceß are attributable no doubt primarly to the war having interfered with the law of supply' and demand. Taking the average imports Ji'nto the (United Kingdom for some years past at 210,000 tons in the year ID] 8, there is a decrease in quantity equal to nearly 30 per cent, and the present year will show a further decline. The price of cheese also has been exceptionally high, due, no doubt, to the Government purchase of Dominion cheese having been withdrawn from the Efljjlish market. _ DIFFICULTIES OF BUSINESS. ' Comparing "the present season with its predecessor, the difficulties pertaining to outward and inward shipments have not decreased but have been accentuated. During the past season from May 1,19 till April 30, 1917, 53 steamers have taken dairy produce as against 48 for the corresponding period of last season. The heavy congestion of both butter and cheese at the various grading (ports awaiting shipment, the difficulty of arranging brands for export per each steamer so that every factory should have a fair proportion of the space available according to their respective requirements, and in view of the continually decreasing insulated space available, have added considerably to the work of the office. In this connection the forbearance exercised by all shippers of'dairy produce has" compensated largely for any additional anxiety and extra work. EXPORTS lAN© STATISTICS. The dairy produce exported from the Dominion still finds the best market in the United Kingdom. If the shipments of the year are compared with last season it will bo found that exports have declined by 84,834 boxes of butter and 31,900 cases of cheese. The Vancouver trade is considerably, less than the previous year and this is also true of the quantities forwaraeu <<o South Africa, and Australia. Small consignments have gone forward to San Francisco. The following table indicates the quantities of boxes of butter shipped to the undermentioned places during the last seven years:— San Fran-South Ans-

These quantities clearly show together with about 2897 boxes shipped to the South Pacific Islands and not included in the above table that the whole of our exportable output of butter is finally disposed of in the United Kingdom. The following table gives the total quantity of clteeso (in tons) imported to the United Kingdom from the respective countries for the last nine years. The annual period covered is from July 1 to June 30 of the succeeding year:—

The notable feature of this table which covers the imports of Cheddar cheese is the increase of 13,10 per cent, from Canada and the decrease from Australia. The total quantity imported for the year ending June 30, 1916, from all countries is 4074 tons less than the previous year, being 127,24* tons as compared with 131,3*20 tons for the corresponding period. Canada, New Zealand, and United States, especially the latter country, show an excess of imports as compared with 1915. Decreases are shown in Italy, Switzerland and other countries, whilst imports in IMG from Holland declined 13,070 tons. For the above period the total imports of butter to the United Kingdom were 41,939 tons less than for the previous twelve months; the totals being, 1915—190,390 tons, and in 1916—148,351 tons. The following tables give the total J quantities of daily produce imported

to the United Kingdom for the last t\t years ending April 30. BOTTEH. ■ ' , I*l2 IBM IMC 1917 Ktemnark »3,m 87,000 58,000 4tt,000 Siberia 31,422 40,500 48,000 Sflg Sweden 17,709 17,380 4,000 12 France 7,970 12,000 la-,000 6000 Australia 38,221! N«w Zealand 1)41,720 18,000 17,000 11000 Other Countries 14,272 11,900 12,000 15,000 CHEESE. 'Canada 72,945 02,000 07,000 79,000 New Zealand 23,644 34,250 29,000 24 000 Other Countries 18,600 23,600 28,000 1&.000 (The figures in the above table for 1917 arc for 10 months of the year only, viz., up to Feb. 25, 1017). RENNET COMPANY. Probably; ithe most important step taken during the year outside the ordinary routine of the industry is the formation of a Rennet Company, which is indicative of progress and foresight. The cheese companies throughout New Zealand have formed a Co-operative Rennet Company, having for its object the saving of all raw material for rennetmaking, and eventually to manufacture same in the Dominion. The company was successfully incorporated, the shares generally being well applied for, but, unfortunately, the number of veils collected has 'been somewhat disappointing. About 25,500 veils have been received; 700 of these were lost in the s.s. Rotorua, the balance being now manufactured into a commercial article in England. It cannot be urged too strongly that every farmer interested in the industry should male* every effort to preserve veils. Slnjild the war continue for a further period the supply of Continental rennet will not be available and it is almost certain that its substitute, pepsin, will be only obtainable in quantity inadequate to meet demands. FUTURE OF 'THE INDUSTRY. 1 No doubt many to-day engased in the industry have considered, and are still considering, what effect the present war will have on dairying when we return to post-war conditions. Will the demand for dairy produce be as greact then as now? Will the range of values be as high as those ruling? Will dairying be as payable and prosperous an occupation then as in the past? Probably the main factor in determining the possibilities of the future licß in the fact that prior to the war Continental herds were unable to supply the growing demand for beef as a staple article of food. The result of the war is that the herds of the Central Powers, Balkan States, and Russia have been depicted. It will take some years to restore the balance lost and re-stock farms; and those Continental countries which have been our compctit tors in the United Kingdom in the dairy produce trade will be handicapped. There will, after the war, be a stronger demand for beef and dairy produce as articles of food, and the demand for the former will hinder the rapid development of dairy herds. With such a favorable outlook, if the war end's as we believe it will, then with confidence the dairy farmer can improve and increase his herd, feeling assured that dairy produce for some years to come will find a profitable market at prices, not perhaps as high as they are torday, but on a basis that will amply reward his industry and toil. LABOR PROBLEMS. There are two or three problems of vital importance to the industry. Should the men of the Second Division 'be called up for foreign service under the Military Service Act and the factories further depleted of skilled labor, then production will be checked. With a diminished milk supply*, together with restricted labor for manufacture there must foiiow a lessened production. Increased prodduction can only come from increased effectiveness amongst all those ei.mei**3 that enter into production. The last problem is inter-independence of one industry upon another which is to-day menaced by the general unrest and dissatisfaction of Labor as manifested by the "go-Blow" policy and a dis-inclination to perform the best service. If as an Empire, a nation, or, a community «e are to succeed and conquer there must •be unity of purpose. Differences must be laid aside, a mutual confidence established upon a full xmderstanding of our responsibilities towards each other and the State as between each and every worker of the community. ASSOCIATION'S PROGRESS. The profit and loss account of flie association is now in credit to the amount of £10,045 12s 2d, an increase of £5244 9s 5d on the year's operations, When •the constant advances made in the value •of goods imported, the increase in ocean freight, the curtailment of receipts in consequence of tho Government cheese •purchase and the consequent reduction in the ratio of profits owing to high prices aro taken into consideration, the financial results for the year must he regarded as very satisfactory. The business of the association each year shows a steady increase in volume. Notwithstanding the difficulties connected with the purchase of supplies and disappointment arising from restricted facilities for ocean transport, the indent orders for the season 1917-18 are in excess of any previous year. In this connection it ia only necessary to remind our clients that with the assistance of our London office every effort will be made to deliver 'orders up to date. The membership for the year shows a very satisfactory increase. At the end of the previous financial year the roll was 199; it now numbers 231. Under existing condition! it waß hardly to be expected that thirtyfour new concerns would join during th« year and that the retirements would bn two only. The support given by many of our members is gratifying to the executive and staff. There is still, however, in this direction some room for advancement. Loyalty to the principles advocated by the association and a more generous support and use of the organisation by all members would ensure a success not hitherto attained.

Canada, cisco. Africa, traha. 1910-11 8,008 — 12,998 — W 1.1-12 62,028 — 5,630 — 1912-13 117,493 — 22,781 ~ 1913-14 134,243 2,794 M.296 -t 1914-15 78,(531 725 14,875 6,416 1915-10 8,115 — 200 6a.ofl9 1910-17 1,500 308 — 22,370

' t' :. AusCanada. Zealand. ■ tralia. 1908 .... 13,152 53 i»(in .... 16,972 — 1M10 .... 22,051 207 1011 ...... 20,256 017 1912> ;.... ,:..,.,... 72,690 24,993 S3 1!)13 .... i 66;4I24 29,489 238 1914 ..... , . C0.763 33,856 1,067 1915 ..... 62,102 32,515 1.04S 1916 ..... 70,341 32,563 -