DAIRY INDUSTRY.

Taranaki Daily News, 22 June 1922, Page 5

DAIRY INDUSTRY.

REVIEW OF PAST YEAR. SEASON’S HUGE PRODUCTION. PROBLEMS OF SHIPPING. - (From Our Special Reporter.) Palmerston N., June 21. In his address at the annual conference of the National Dairy Association, the president (Mr. A. Morton), said that the most remarkable feature ot the season had been the tremendous increase in production. He did not know when there had been such a favorable season for production. Right through the Dominion, from early spring to the present time, there had been no drawback, and production had increased very greatly.

The quantity of butter shipped to the end of April had increased from 1,137,347 boxes in 1'921 to 1,591,980 boxes in the present season. The cheese output did not show such a large increase, as a number of factories had changed over from cheese to butter, but despite this it had increased from 880,808 crates to 909,910 craves, so rnat though there was a considerable decline in the value received -for the produce, the total, as set out by the Government reports, showed a substantial increase. Butter totalled £8,885,820. and cheese £7,615,254, making the total value of dairy produce of £16,421,074, practically one-third of the total exports. A large part of the increase was due to the fact that the prices ruling for dairy produce were better than those ruling for other primary products, and as a result a number of graziers had turned their attention to milk, and though they had not received the prices they had anticipated, he hoped they had profited thereby. The standard of production .had been well maintained, the average grade of butter being exceedingly high; quite likely it was a record. SHIPPING PROBLEMS. The increased production was responsible for raising difficulties in regard to shipping, where the position was anything but satisfactory. Prior to the commencement of the*'season a contract had been entered into with the shipping companies, and though they did not secure large reductions in freight, yet they had received an assurance from the shipping companies that the stores would be kept clear. The association had given the shipping companies to understand that they must be prepared for an increase in production, though so large an increase had not been expected. They had endeavored to get the shipping companies to enter into a bond, but the companies would not do this. They had. however, lamentably failed to carry out their undertaking, and as a result there had been congestion, more particularly in regard to cheese. The reasons given by the shipping companies were various, but the main ope was that they were anxious to reduce their expenses to rne minimum, so as to reduce freights, and so had laid up several boats, only keeping sufficient to cater for the needs of the trade. These, owing to the increased output, were not sufficient. In view of the recent disorganisation of market conditions, it was impossible to ■say until the final returns of the season came in whether this delay would affect dairy companies adversely or not. It may have been that had all the produce gone on the London market the price would have gone down lower than it did. Now companies had a lot of produce on hand, and at the tail end of the season, when it was not usual to do so, prices were going up by leaps and bounds, and they would consequently get higher prices. RECORD NUMBER OF SHIPS. Mr. Morton pointed out that no less than 7.7 boats had left New Zealand last year carrying dairy produce. This was a record, he believed, but possibly they had carried a lesser average cargo of produce. He touched on the efrorjs that shipping companies were making to reduce the time taken by the ships in loading in the Dominion and in discharging at the other end, with a view to enabling the boats to make more trips to the Dominion. The affect of this was already appreciable. The contract made with the shipping companies was made for one year, and expired on August 3d, and he considered that it would be necessary and advisable for representatives of both branches of the industry to meet and discuss the terms of the fresh contract. He could hardly say if it was possible to make much improvement, as there was not enough competition to enable them to dictate terms to the shipping companies. Prices received for (heir produce had been lower than had been anticipated, and but for the fact of the increased production, the position would have been more disastrous than had been the case, though it had been disastrous enough to those who had gone farming during the past few years and had paid very high prices for their land—prices never at any time warranted. As to what had led to the low prices ruling for produce, a variety of reasons had been given, and probably none of them was altogether satisfactory. This matter had been discussed during the past few weeks, and would probably receive •further discussion during the conference. No doubt unemployment had a good deal to do with the position, but whether it was due to the natural law of supply and demand, or whether outside influences were responsible, he could not say. THE PRESENT PROSPECTS. Regarding the present prospects, Mr. Morton said there was less unemployment in England at present, and judging by the prices cabled, the people were apparently able to afford to pay better prices than in the past. There must also be -a great shortage, particularly in butter. Siberia, one of the largest suppliers prior to the war, has practically disappeared as a source of supply. The Continental supply had not largely increased, and. while that of New Zealand and Australia had increased. there was still a shortage. In 1913 Great Britain imported 3,781,099 cwt. of butter. This had fallen to 1,477,485 cwt. in 1920, and had risen to 3,220,327 cwt. in 19i21, having more than doubled in one year. It was evident that New Zealand would benefit in one important particular. The lower prices which had ruled, though not satisfactory to the New Zealand producer, had brought about a larger consumption of butter, for during the war peo pie had been unable to secure buttci and had made use of other substitutes I and it was not until the price of butter had fallen that the people had been I induced to resume the consumption of butter, increasing the demand. Now that the demand was established, they | found the people prepared to pay higher

. prices than it was anticipated a few months ago they would have paid. i Unfortunately, the financial position of the Dominion was how little better i than during the past twelve months, and the stringency in regard to the : bank business continued. A good deal | had been said about the bank interest I being 7 per cent, while the interest in I London was 3% per cent., but the ■ chairman of the Bank of New Zealand I had explained the reasons of this, and they must agree that the argument was correct, provided it was based on a sound foundation. The chairman of the Bank of New Zealand anticipated that the tightness of money would continue for months, but the speaker hoped that his pessimism would prove unfounded and that the optimism of the Prime Minister would prove correct. He did not consider the position of the dairy farmer would improve much until they were in a position to export next season’s produce and receive payment for it. Many factories had overdrawn on their produce, and though there would in some cases be a surplus, the surplus would not be of a very great amount, and companies could not look forward to large bonuses. ADVERTISING PRODUCE. At the last conference a resolution had been passed on the subject of advertising on the Home market, but the response from the different companies was not sufficient to warrant the directors proceeding further. It was hoped, in connection with the marketing pro posals, that something might be done in connection with the advertising. It was undoubtedly a crying need that they should advertise more fully on the English market the qualities of their produce, so as to get a better price. The matter of adjusting the railway freight had also received attention at the hands of the executive, and the South Island Dairy Association was also moving in the matter, and a further conference would take place between the two associations and the heads of the Railway Department to see if it was not possible to effect a substantial reduction in the freight of butter and cheese. He understood the Railway Department intended to revise its tariff, and the National Dairy Association was preparing to put all the information possible before them so as to have its side of the case fully considered.

In concluding, he said that for the ■coming season there was every prospect of the prices being better, and he hoped they would meet next yew under happier conditions.