DAIRY INDUSTRY.

Taranaki Daily News, 2 June 1921, Page 5

DAIRY INDUSTRY.

REMARKABLE EXPANSION. PROSPECTS FOR THE FpTI’RE. QUESTION OF' SHIPPING. The progress of the dairying industry in New Zealand was dealt with by the president of the National Dairy Association, Mr. A. Morton, who presided over the conference of the 'North Auckland Dairy Association on Monday. Mr. Morton said that in many respects the past year had been one of the most eventful the dairying industry had ever experienced. They had reached figures which a few years ago were not thought possible. The value of the dairy produce exported last year was £16,600,000, to which had to be added the value of the produce reserved for home consumption, which he estimated at £4,000,000, bringing the total value to £20,000,000. • As the total exports from New Zealand were approximately a little over £32,000,000 at the beginning of the war. it would be recognised that the dairying industry was now of such importance as to entitle it to more consideration than it had in the past. The industry had been accustomed to take second place to the wool and meat industries, but he thought this time had now gone by. He was not referring particularly to the existing depression, but he believed the industry would forge ahead and that the wool and meat industries would never again get up to it. Regarding the prices realised last year for butter and cheese, Mr. Morton said these had been records. He believed the high-water mark had been reached, and he doubted if it would again be reached for some time. They had been fortunate in arranging for the sale of all last season's butter at a fixed price. GREAT EXPANSION IN NORTH AUCKLAND.

Speaking of the expansion of the industry, Mr. Morton said it had shown a phenomenal increase jn the Auckland province, to. which the farmers in the North Auckland district had contributed their share. There had never been an increase in any industry in New Zealand equal to that in the dairying industry in the Auckland district. He predicted that these figures would be surpassed next year, and that they would continue to increase. The slump in the wool and meat markets would have a tendency to induce more farmers to go in for dairying, and as a result he expected the exports of dairy produce to increase considerably. There had been a great decrease in production in other dairying countries, which had not recovered from the effects of the war, and it would be some time before they did recover. The importations into Britain of butter and cheese were now only half what they were in prewar times, and there ware no prospect® that they would reach a normal standard for a long time. For this reason alone, Mr. Morton said it appeared fairly conclusive that prospects, so far as butter was concerned, would be good for some years. The price of cheese in Britain had decreased somewhat, it was still' good, and this he attributed to the fact that there «was a good demand, due largelv to the Avar popularising cheese as an article of food. It was yet too soon to say what next season’s price -would be, and therefore it was not possible to forecast which would be the better branch of the industry to work in. Last year dairy companies had found butter-making more profitable than cheese. The difficulty cheese factories had to face last year was the accumulation of stocks in the works throughout the Dominion, and the lack of regular shipping. On this account he thought the condition of the cheese awaiting shipment suffered considerably.

QUESTION OF FREIGHTS. There apparently had be§n a good demand for blitter in Britain, with the result that there had not been any great accumulation of stocks in this country. In consequence, at the end of the requisition supplies had either been shifted or had space allocated for them. During the year there had been an . to raise the freight on produce for Britain, but as the result of representations to the Imperial Government by the Dominion Government a slight concession had bfecn made to producers. This matter would require their attention before next season. For some months there had been reductions in freights on cargoes excepting that requiring refrigerated space. On flax the freight had been reduced from £l5 15s to £lO 10s, and now it was down to £6 10s a ton, very little more than one-third of the charges during the war. If it was possible to make reductions on all classes of general cargo, surely it was possible to reduce freights upon refrigerated cargo. Some endeavor would be made to come to an arrangement with the shipping companies on this matter within the next few months, and he hoped a ;considerable benefit would result to the producer. There had been a considerable amount of feeling throughout the Dominion on this subject, and an attempt was being made to establish a line of ships which would at least be controlled by the producers. He believed it would not be long before some tangible results were shown and that they would not be far from a remedy of the difficulty previously experienced m regard to the shipping of produce.

THE FINANCIAL OUTLOOK. Referring to the effect of the operations of the banks, consequent upon the financial situation, on dairy companies, Mr. Morton said the cutting down of privileges previously enjoyed had prevented extensions of buildings and rebuilding being carried out. Thehe restrictions were being shared by the community as a whole. To-day the position was somewhat easier, and better arrangements could now be made than were possible a few months ago. The day was not far distant when obstructions of this description would be removed agd they would find themselves more satisfied with the banks than they were twelve months ago. Tn the last session of Parliament the immunity which dairy companies had enjoyed from taxation was taken away, and they were now liable to be taxed, oh certain figures in their balance-sheets, and they also had to pay a fee for grading. Personally, he thought, all things considered, it was just. They could not expect to escape without a charge, with the financial position of the Dominion as it was, and the price of their higher than it had ever been. The relations between th® companbjs and their employees had been of the

nest, continued Mr. "Morton. Labor in. Britain was a serious menace to industry, and it would depend upon conditions there what price would be realised liy- farmers for their next season’s produce. At present the. purchasing power of the British people was steady ily diminishing this being largely du< to labor troubles, and unless the pc&if tion improved, it must have a eerious" effect upon producer® next year.