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DAIRYING.

Df THE UNITED STATE,? AND CANADA. AS VIEWED BY THE EEPRESENTATIVE OF THE NATIONAL DAIRY ASSOCIATION, LTD. The writer left Wellington on June 7 In company with Messrs. Forsyth and Murdoch representing the committee set up in. Taranaki, and Mr. W. Dempster, representing the Agricultural Department. The above named gentler n were to visit the U.S.A. and Canada, and England, and, if necessary, Europe,, to go fully into the question of milk by-products. The writer could only visit the U.S.A. and Canada, and sought to get a general idea of the position relating to by-products in these countries in the short time at his disposal after attending to a number of other matters in connection with the purchases of the National Dairy Association in the United States.

To arrive at an idea of the dairy industry aB it operates in the United States, it is well to note that, with the exception of condensed milk and milk sugar, the whole of the milk production is consumed in the United States itself. This is due to the fact that such a large proportion of the population live in the cities. In New York, within a radius of 15 miles, there are" 10 million people. Chicago has three millions, Philadelphia two millions, Detroit one million, and there are many other very large towns. As a matter iof fact, one of the economic problems of the United States at the present time is to stem the drift to the cities. Of the total milk production in the United States 50 per cent, is used for the fresh milk trade, 40 per centl for the manufacture of butter, 4 per cent. f •'• manufacture of cheese, 3 per cent, condensed and dried milk, ana the balance in sundry other ways. The total butter manufactured is approximately 670,000 tons. It is estimated that about half of this is butter made on the farm. The total cheese manufactured is approximately 107,000 tons. The ir Tease in the production has not kept pace with the population, and over a period of nine years from 1910 to 1919 the total number of cows has only increased by 3,341,000. When the population and large area involved is taken into consideration, this, it will be admitted, is a very small increase. "In Canada the only dairy products which are, exported are cheese and condensed milk. There are occasionally small exports of butter, but not sufficient to take into consideration. The population of the United States is such that there is a growing export of milk and cream from Canada to the U.S.A. from territory lying within a reasonable distance of the boundary line. Dealing now individually with the production of cheese,, butter, condensed milk, dried milk and milk sugar, in both U.S.A. and Canada:— CHEESE.

In the. U.S.A. there are manufactured Cheddar, Swiss, Cottage, and several other fancy makes of cheese- The cottage cheese is manufactured from skim milk with, in some place?, a small addition of butterfat. This cheese only keeps for four days, and naturally is for immediate consumption. The manufacture of Swiss cheese is rapidly growing, and with the price which is paid for this article, would return on a cooperative basis, a higher price than any other dairy product. Prior to the commencement of the war, America imported large quantities of this cheese from Switzerland, but this trade naturally ceased and the U.S.A. had to turn its attention to its manufacture. In 191S they manufactured 8300 tons, and this will be much exceeded in 1913. The wholesale price at the time of the writer's visit was about fifty cents (2s Id) a pound. In Canada nothing but Cheddar cheese is manufactured. Their export to England in 1918 was approximately 75,00,0 tons. This shows a decrease as compared with 1917 of 5000 tons. From 1913 to 1915 the exports showed a steady decline, but 1916 and 1917 gave a large increase. The condition of the Canadian cheese market at present is a most peculiar one. The previous summer, the total export of cheese from Canada was purchased by the Imperial Government, as was done in New Zealand- This iB not the case during this summer, which is just drawing to a close. The Food Controller in England agreed to buy the Canadian output, but after much delay the Imperial Treasury refused to authorise the purchase. Speculation immediately commenced in Canada amongst the buyers and the price gradually forced its way up until it reached 32 cents (Is 4d) a pound. None of the merchants with whom the writer was in, touch, nor yet the Government) Dairy Commissioner, can give a reason for the local price going up to this figure. It is true that there had been a number of enquiries from Europe, but it is doubtful if any sales resulted from these enquiries. In the meantime the Imperial Government had fixed the retal price of cheese in London at Is 6d a pound; Without taking the cost of exchange it is figured that it costs 5Jd per pound to take cheese from Montreal and place it in the hands of the consumers. This leaves 12Jd per pound f.ab. Montreal. But owing to the cost of exchange having gone so much against England the cost of this item alone was lid a pi«md on the cheese, leaving the net value of the cheese at lid f.o.b. Montreal-

Naturally, buying in Canada ceased immediately and shipping of cheese was at a standstill. As the British market needed the cheese the Food Committee eventually sent Mr. F. Warren and Sir Thomas Clement to Montreal to negotiate. They offered the producers Hid, but as they had received as high as Is 4d for portion of the cheese already sold, they refused to consider it. Finally, after many attempts to settle the question, Messrs. Warren and Clement left Montreal without having made a purchase. They, however, left a flnal offer of 12% d a pound, thus undertaking to pay the loss of exchange, at present ljd a pound. It is interesting to note that Mr. Warren made the following statement:—"The British Committee will lose on Canadian cheese purchased at 123 d, and this loss will have to be met from the profits on. purchases in other countries, or become a charge on the British Treasury. The bulk of the current make of cheese is now being sold to the Government at 12£ d, but producers are free to sell elsewhere if they choose, and can find a market. It" is estimated that there are 20,000 tons of cheese stored in Montreal belonging to merchants purchased at from Is 2d to Is 4d a lb. One merchant ■stated that he had lost £IO,OOO on his purchases. Taking a general vUw of the cheese

position in U.S.A. and Canada, the writer is of the opinion that New Zealand has nothing to fear in the way of increased competition. It is doubtful if U.S.A. will ever export any cheese, and in Canada, if the prices of butter and cheese keep their relative positions, it will be butter rather than cheese which will show an increase. The price paid for butter-fat at cheese factories varies from 2s 5d to 3s 3d a pound, the latter being for milk supplied for the manufacture of Swiss cheese. BUTTER. Neither in the U.S.A- nor C:\mC :. with one exception, does the quality of the butter compare with that of New Zealand. The one exception in Canada is in the province of Alberta, which supplies the trade of tH Pacific Const. Owing to the competition of New Zealand butter Alberta has been forced to adopt New Zealand methods of manufacture, and they are turning out r, very good article. As already indicated, neither the States nor Canada have any export of butter, but there is a tendency towards increasing the manufacture of butter in Canada. Of course, this may be only temporary owing to controlled price of cheese. The wholesale price of butter in the U.S.A. and Canada stands at present from 2s 4d to 2s Od a pound. Could New Zealand butter be exported to Vancouver there would be no difficulty in securing Is lOd a lb f.o.b. New Zealand, if the business were properly handled. Prices paid for butter-fat at butter factories varies from 2s 4(1 ./» 2s lid lb.

CONDENSED MILK. In 1913 there was exported from the U.S.A! 6700 tons of condensed milk and for the fiscal year 1919, the export.was 325,000 tons. In Canada, althoi"*h no figures were available, it is estimated that there was a similar increase. Prior to the outbreak of war many of the condensed milk factories were having difficulties in keeping afloat. The great demand for condensed milk and it is likely that until conditions become more normla in Europe this demand will continue. But the feeling throughout America, and freely expressed by unbiassed authorities, is that the condensed milk business must have a set-back. They maintain that the export trade cannot be expected to continue at its present dimensions. From the point of view of New Zealand shipping enters largely into the manufacture of this article. The reduction from whole mlik to condensed milk is approximately 50 per cent. From whole milk to cheese 90 per cent-; from whole milk to butter, !)0 per cent. That is: to say, you would have for shipment from lOOOlbs of milk SOlbs of condensed milk, or lolbs of cheese or 4lbs of butter. Should our producers turn their attention largely to the production of condensed milk the increase in our shipping difficulties is apparent. Further, the writer is of the opinion that the difficulties of manufacturing a first-class condensed milk arc greater than the manufacture of (my dairy product. Price of butter-fat for milk delivered to condensed milk factories varies from 2s 9d to 3s 3d fl pound. The factories are, of course, operated as proprietary concerns. Milk has sometimes to be delivered twice daily. MILK SUGAR.

The American market is over-stocked with milk sugar and prices are falling. There was a very large increase in production of liiis by-product during the war period. Large quantities, it is said, were used for making smoke screens. In any case, the Imperial Government were heavy buyers. -The demand in this direction has, of course, disappeared, with a consequent fall in prices. A number of concerns have already ceased to manufacture. It is estimated that the State of California alone can manufacture all the milk sugar that is consumed in the TJ-S.A. Its uses are limited to baby foods and medicinal purposes. There is a growing feeling in dairy centres that each factory should be in a position to manufacture butler, cheese, milk powder and milk sugar. There is a good deal of commonsense in this idea, and a milk powder plant nan he readily utilised for the manufacture of milk sugar provided the butter end of the business can swing over to cheese making. CASEIN.

Very little attention is being given to this article. The price has fallen, and the market well stocked with cheap casein from the Argentine. In any case the Americans consider that skim milk is of too much value as a food product to manufacture into casein.

MILK POWDER. The manufacture of milk powder is growing rapidly in the U.S.A., and also to some extent in Canada. The total manufacture in U.S.A. for 1918 was approximately 2000 tons whole milk powder and 10,000 tons of skim milk, powder. In Canada the Canadian Milk Products Company, who are the principal manufacturers in that Dominion, and who are the holders of the Canadian rights for the Merrel-Soule process, made in 1912 160 tons, in 1018 1000 tons, and will make in 1919 1500 tons. The principal experts of the Agricultural Department of the Federal Government hold that the present development is along the lines of extracting the full food .value from milk, and consider that from the point of view of food the value of skim milk has not been recognised. They ask, why take an almost ideal food such as skim milk and feed pifjs to make another type of food which is not so valuable, to say nothing of the loss in transfer. There has developed in America what one might call almost a "mania" for all groceries and foodstuffs to he put up in cardboard packages. Such foods as sugar, butter, sausages, etc., are sold by the grocer in cardboard boxes. This influence has also, to some extent, been responsible for the development of the milk powder business. It has also been found that skim milk powder can be largely used in the manufacture of ice cream, biscuits, all classes of confectionery, soups, etc., and. here let it be said that the ice cream ■business in America has reached enormous proportions. It is now a recognised food and medical men recommend it for hospitals, etc. There are a great number of ice cream parlours in every city, town, and village. Every cafe and hotel has ice cream on the menu, and in all the railway trains ice cream may be had at any time. The manufacture of whole milk powder cannot as yet be paid to be n success, the difficulty being that after being held for a few months it develops rancidity. Of the quantity manufactured, portion whilst fresh, has been mixed with water and put on the market as fresh milk in territory where there has been a shortage of fresh milk. But any great developments along these lines cannot be* expected, so long as trouble with rancidity devekws. Skim milk powder, however,

appears ,to keep almost indefinitely, and both in U.S.A. and Canada there has been a ready sale for all the soluble skim milk powder manufactured. If asked to describe a good skim milk powder in one word, then "solubility" describes it. There is no sale for a powder that is not soluble. So far the Spray process is the only one which has been thoroughly successful in this direction. Buttermilk is being powdered on tiie hot roller system for poultry food, but it is not thoroughly soluble. The Merrel-Souie process and' also the GrevJensen, patent rights, of which are held by thevWaikato Syndicate, have been thoroughly tried and proved successful. The writer inspected a number of other processes more or loss along the same lines as the Mcrrel-Soule and flrey-Jen-sen, but these are as yet in the experimental stages, and a definite opinion cannot be xpressed in the meantime. These plants were visited by Mr. Dempster, of the Dairy Division, and also Messrs. Murdoch 'and Forsyth. ' The two latter gentlemen are closely in touch with these newer ideas with a view to securing the rights if thought advisable. When the writer was in U.S.A. skim milk powder was selling wholesale at. from lid to lljd a pound with a keen demand. At one factory visited 2s lid was being paid for butter-fat for butter making, witli an additional Is 7d per lOOlbs of skim milk if (.his was left at the factory, or in other words, an additional 4?d per pound of butter-fat on a basis of 4 per cent. milk. Note here that this price of 2s lid for but-ter-fat for butter making seems abnormally high, as butter was selling at from '2s 5d to 2s (Id per pound, and it would appear aa if some of the 'profit on the powder business was being iised to increase the butter-fat payments for butter* making. To arrive at the profit on the powder business, lOOlba of skim mil kcost Is 7d, it produced 91bs of skim milk powder at lid—Bs 3d. Coat oT manufacture as nearly aa it could be ascertained was 4d a pound. For filbs at 4d equal 3s plus cost of skim milk, Is 7d equals 4s' 7d—profit 3s Bd. (Jn the basis of a 4 per cent, milk, this would pay an additional lid per pound of butter-fat. It is needless to say that this was a proprietary factory. These- figures are so good as to make one almost doubtful, buti the writer has every reason to believe that they are approximately accurate. In New Zealand the cost of manufacture would be higher owing to the Coat of fuel and heavy transport charges, but the above figures would allow of increased charges and then leave a good margin. If a. market can be found in England and Europe the writer is of the opinion that the producers of the Dominion can with safety support the dried skim milk proposition. Fuel will bo the greatest problem, and A'til the position is somewhat relieved in this direction any development is impossible- Some experimenting is taking place with reference to drying the milk With beat produced by electricity, but thus far there is nothing to report. Merchants in the U.S.A. state that they are preparing to buy all the powder New Zealand can produce, but not too much dependence can be placed on this offer. It is true that they are able to absorb rapidly all that is produced, but should any import trade develop a protective tariff would immediately arise. Enquiries were made as to whether the milk could be condensed by, say 4 to 1, at outlying stations, and brought to a central station for final drying. There is no difficulty in this direction as the condensed milk will keep sweet for some daj*. Practically the whole of the dairy business in the United States, and by far the greater portion of the Canadian business, is on proprietary lines. The manufacture of the by-products has lent itself more readily to speculation than the manufacture of butter and cheese, and, this probably accounts to some extent for the more ready development of the powder business in the U.S.A. than elsewhereCONCLUSION.

The above has been written without the writer having had an opportunity of tooking into the position in England and Europe. The question of a market is an all importat one, and it is quite possible that when Mr. Dempster and Messrs. Forsyth and Murdoch, who are now in England, have made their report, that some of the views expressed above will require to be modified or, amended. Butsizing up the position in America as carefully as possible, the writer is of opinion that the by-product for the Xcw Zealand producer is skim-milk powder.— T. C. Brash.

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/TDN19191213.2.65

Bibliographic details
Ngā taipitopito pukapuka

Taranaki Daily News, 13 December 1919, Page 11

Word count
Tapeke kupu
3,073

DAIRYING. Taranaki Daily News, 13 December 1919, Page 11

DAIRYING. Taranaki Daily News, 13 December 1919, Page 11

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