DAIRY PRODUCE REPORT

Taranaki Daily News, 20 November 1926, Page 22

DAIRY PRODUCE REPORT

REVIEW BY WEDDELLS POSITION IX THE ARGENTINE. EVIDENCE OF A SHRINKAGE. V eddel’s review of the dairy export trade states, inter alia:— Importations of butter during the period under review amounting to 24,685 tons, marked an increase of 2230 tons, or 9.9 per cent, over the 1924-25 total of 22,455 tons. Although last year’s shipments were heavier than in the preceding year, the actual production of butter in the Argentine Republic showed a distinct shrinkage, which is very difficult to account for in view of -the fact that climatic conditions during the whole year were entirely favourable for production. It is estimated that the local consumption of butter last year was reduced by about 30 per cent., partly due to the increased use of edible oils, the importation of which was encouraged by legislation. Another factor which may have had some bearing upon the reduced production of butter is the higher prices ruling for beef cattle during the past year or so. While cattle prices were low a large number of people turned over from beef fattening to dairy farming; but now that cattle-raising has again become profitable, no doubt many of the farmers have abandoned their attempts at dairy farming in order to resume the business they understand so well.

Although the progress made in recent years in the dairy produce trade in the Argentine has been checked for the time being, so far as quantity is concerned, as regards quality if is highly gratifying to be able to report that the improvement reported a year ago has been fully maintained. SOUTH AFRJCA. Contrary to expectations the 1925-26 season throughout the Union of South Africa turned out to be a very unsatisfactory one from an agricultural point of view. The rainfall was far below the average in most parts of the country and in several districts a severe state of drought existed. Nevertheless the supply of milk for butter and cheese production was greater than it has been for some years past, chiefly owing to the good condition of the live stock after the heavy rains of last year, but also partly to the strict attention which farmers have been paying to the live stock side of their industry following upon a rather widespread failure of crops.

There are 75 butter factories and 138 cheese factories operating throughout the Union, and during the year ended June 30, 1926, these factories produced 6186 tons of butter and 3127 tons of cheese, but of these quantities only 229 tons .of butter was shipped to this market as compared with 241 tons in 1924-25. ' Dairy farming in the Union of South Africa is undoubtedly making good progress, and it is expected that within the next few years important quantities will be available for export, but in the meantime the most that the local producers have been able to accomplish is to provide a sufficient quantity of butter to feed tlie population without having to resort to imports from Australia. DENMARK. The trade in Danish butter with this country during the past year experienced a recovery from the setback of 1924-25, the total imports amounting to 89,732 tons, as compared with 85,206 tons in the preceding year, an increase of 4526 tons, or 5.3 per cent. In addition to the increase in production, the larger volume of shipments to this country is partly due to a curtailment of exports from Denmark to Germany and other Continental countries, and also to America. At the end of 1925 America increased her import tariff on butter by 20 per cent., thus completely shutting out all imports from Europe. Germany has also recently raised a tariff wall against extraneous supplies. The natural consequence of these political manoeuvres is that a larger quantity of Danish butter is shipped to Great Britain. The season in Denmark this year, as in most other European countries, has been particularly favourable for milk production, and shipments since the early spring have shown large increases over those of last year. The total imports of butter from the Irish Free State during the twelve months amounted to 21,431 tons, as compared with 21,219 tons in 1924-25, an increase of 211 tons. In 1923-24 the first complete year for which these figures are available, Xhe total was 24,603. tons. Although all butter exported from the Irish Free State does not cross the St. George's Channel, the proportion shipped to England is sufficiently large to make Ireland an important supplier of butter to Great Britain. Irish butter arrives on this market mostly during the months of May to November, inclusive, and enjoys a. well-merited reputation for quality and condition. The co-operative movement in Ireland has made great strides in recent years, and the production of butter is being organised more aird more on lines similar to those followed in Denmark. The Irish Government, who are taking a keen interest in the industry, have recently passed legislation establishing a national brand for butter and providing for the issue of export licenses and the official inspection of butter intended for export. RUSSIA.

The production and export of butter from Russia and Siberia has always been an important factor in the industrial life of the cattle-rearing districts, and much importance has been attached to this question by the Russian Governments. Since the resumption of exports the quality of the butter shipped from Russia has greatly improved. In the main it now shows less irregularity than before the war, although the best quality produced to-day does not equal the best that was produced before the war. With the object of fostering the butter industry special Government societies have beeu established, and present indications point to tlie quantity of Siberian butter on tlie United Kingdom market resuming pre-war proportions in the course of a few years. Imports from Russia during the twelve months just ended amounted to 14,148 tons, against 18.483 tons in 1924-25. and 2111 tons in 1923-24. The reduction last year was due to the diversion of a larger quantity than usual to European conntries owing to the higher price obtainable there. From Finland 8984 tons were received in 1925-26. against 7885 tons in 1924-25, and 5638 tons in 192324. Before the war tlie total quantity of

Siberian butter exported from Imperial Russia was about 83,000 tons annually, of which about 30,000 tons were imported into the United Kingdom. MARGARINE. Judging by the imports, which show a total of 68,668 tons, against 68,450 tons in 1924-25, it cannot be said that the margarine trade has made much progress during the past year, but the opinion is held in the trade t'iat the Home production has increased more considerably, although the figures of imports of raw material do not support this view. This check to the development of tlie trade is doubtless partly due to the depressed general trade of the country, and partly to the arrangement come to amongst manufacturers, reported a year ago, under which the practice of selling the cheaper grades at under the cost of production, and relying upon the better class lines to cover the loss was abandoned, and the sale of each grade was put upon a more economic basis. The tendency so strongly marked during the preceding year on the part of the public to show preference for the higher grades over the very cheap stuff has been further emphasised, with the result that the whole standard of the trade has been very greatly improved. In July, 1925, a general advance in prices increased the retail cost, but at the same time had the beneficial effect of enabling manufacturers to improve the quality of their product, put their factories upon a sound basis,- and allow a better profit to the distributor.

Prices for raw materials have ruled at a reasonable level and manufacturers have been able in the main to show, good results on the year's working. The distribution of margarine to the public is getting more and more into the hands of the smaller shopkeepers, and the partial monopoly that remained in the hands of the larger concerns for so many years is rapidly disappearing, a ' fact which is doubtless all to the advantage of the general health of the industry. NEW ZEALAND. The total imports of New Zealand -butter during the twelve months was 51.138 tons, against 67,179 tons in 1924-25, a decrease of 16,041 tons, or 23.9 per cent. Receipts of cheese amounted to 66,953 tons, against 71,031 tons, a decrease of 4078 tons, or 5.7 per cent. These figures, however, do not give an accurate picture of the total production in New Zealand during the period, owing to the growing practice of delaying shipments at the end of the season with the object of having New Zealand butter and cheese on this market all the year round. The quantities actually produced during the 1925-26 season, as shown by the official returns of butter and cheese graded for export, are 62,563 tons of butter, as compared with 70,461 tons in the preceding year, a decrease of 7898 or 11 per cent., and 74,029 tons o” cheese, as compared with 69,959 tons, an increase of 4070 tons, or 5.8 per cent. On a butter-fat basis the decrease in production over the season of 5.8 per cent. A very cold and bleak spring throughout the Dominion, more especially in the North Island, not only reduced the milk flow very considerably during the earlier months, but tended ‘also to curtail the maximum flow during the fl Ith of the season. Although the. outlook improved during November and December, a dry spell was experienced in January in the principal butter-producing districts, and production for that month showed a heavy decline on the previous years. A cold snap during the first half of February retar>d the growth of U/j pastures, but after that a very mild autumn set in, with good growth in many districts, which did much to counteract the earlier decrease in butter production.

As the cheese factories during the 1924-25 season had again paid out an average of Id to 2d per lb more for butter-fat than the butter factories, the tendency naturally was for dual plants during the past season to make cheese instead of butter, and this tendency is reflected in tlie production figures shown above. A still greater influence, however, was provided by the offers made at the beginning of tlie season by buyers on this side to purchase outputs up to the end of November and December at fljd to 9Jd per lb net f.o.'b. These resulted in a record quantity of cheese being sold forward during July and August for shipment up to January. By the time the dual plant factories had completed their sale' contracts the butter market in the United Kingdom had declined to about 1745, while cheese on the other hand appeared to be firm in the vicinity of 100 s. The directors, therefore, did not hesitate to continue the manufacturing of cheese throughout the season. SHIPMENTS. .With the object of prolonging the shipping season and feeding the market with more regularity, the Dairy Produce Control Board set out to regulate shipments of both blitter and cheese from the Dominion, but their policy received an early setback through the strike of British seamen in August and September, just at the time when it was most important that all possible supplies should be hurried forward. As a result, several heavy shipments of butter reached their destination in close sequence. In the main, however, the object of the board was attained, as at the end of April no less than 9250 tons of butter and 11,500 tons of cheese remained in cool store awaiting shipment. So far as cheese is concerned, it remains to be seen whether the policy is altogether wise, as it will bring the late shipments from New Zealand into serious competition with the Canadian make.

Encouraged by their success in recent years during the comparative absence of "Siberian butter, a very large number of New Zealand shippers during the current season have placed selling limits on their shipments of butter, but the course of tlie market this year has not favoured the holding policy, and now that pre-war conditions as regards the production of Siberian butter are getting nearer every year, the likelihood of any success attending this policy in future mrst become more problematical. QUALITY. Tlie practice of grading cream was more generally followed during the past season than ever before. It is expected that before long it will be compulsory for all cream produced for export to be graded, with a system of differential prices for the various grades of cream. In view of the longer average time now occupied between production and consumption. and also the prospective abolition of the use of preservatives in butter, it is all the more necessary that the quality of the product should be of the highest possible grade when it leaves 'the factory. DAIRY CONTROL BOARD. In spite of considerable opposition on

the part of a great many of the New Zealand factories the Control Board have continued in its determination to take absolute control of all dairy produce on September 1, 1926, and from that date it is their intention that all butter and cheese shall be handled by importers under the direct control of the Dairy Produce Control Board’s London office. Allotments have been made to the various importing houses approximately on the quantities handled by tile respective firms during the years 1922-23, 1923-24 and 1924-25. CANADA. Another large increase has to be recorded in the export of cheese from Canada during the past twelve months, the total quantity received amounting to 61.863 tons, against. 56,605 tons in 192425, an increase of 5258 tons, or 9.3 per cent. This is the third increase in succession, and once more brings tlie Canadian total up to the level of the New Zealand output, although as recently as 1922-23 the Canadian output amounted to only 45.528 tons, against 73,125 tons from New Zealand. Ship-

ments of butter from Canada were also unusually heavy, amounting to 8063 tons, as compared with 6865 tons in 1924-25. an increase of 1198 tons, or 17.4 per cent. Climatic conditions over the greater part of Canada during the summer months of 1925 were very favourable for milk production, and despite heavy autumn frosts experienced earlier than usual, the total quantity of milk produced throughout the year showed an increase. Stock entered the winter in good condition with ample fodder available for all requirements. Although the spring of 1926 was late, and the pastures during tlie latter part of May and early June were not so advanced as usual, the rainfall during June was plentiful, and tlse prospects for the current season at the end of June were extremely favourable, some of the Western Provinces anticipating an increase of 25 to 30 per cent, in butter production for the calendar year. According to a preliminary estimate, the nrodimtimi of creamery butter durina ti e calendar year 1925 amorntid to 89.6-53 tons, as compared with 79.863

to:: for the year 1924, an increase cf 0.9 per cent. The production of cheese dung 1925 amounted to 74,584 tons, as compared with 66,834 tons during 11524, an increase of 12.2 per cent. From these figures it appears that the annual increase in the milk supply is going into cheese production rather than buttermaking. as is only to be expected in view of the higher yield on a butter fat basis obtainable from tlie manufacture of cheese as compared with butter. Th® diversion from butter to cheese in the Provinces of Ontario and Quebec, where more than 96 per cent, of the cheese is produced, may be more than offset by increased butter production in other Provinces. The prices obtained during 1925 were very satisfactory to the producers, ami particularly to those supplying cke'se factories. It is doubtful if, from the standpoint of purchasing value Hie producers were ever in a better position. Greater interest and enthusiasm on the part of the produsprs are everywhere evident, and indications point to a continued inc retire in production and im-rove-i ment in cm«litv of both ''•t!t<re e-'l cheese.