THE DAIRY.

Waikato Times, Volume XXX, Issue 2484, 12 June 1888, Page 3

THE DAIRY.

The following is a verbatim copy of the circular issued by Mr W. Spragg, manager of the Butter Department of the New Aealand B'rozen Meat Company, to the farmers and milk suppliers of the WaiUato. The letter states that the company are resolved to spare no efforts to make the butter industry a success as an article of export, and rely with confidence on the suppliers to co-operate in the same spirit in order to developc the trade into one of large dimensions. The experience gained by the company during the past, and their first season's operations, have placed them in a better positiou to judge of the requirements aud plaus for the future to be carried on without, loss to themselves and with every possible advantage to the suppliers. The terms offered as the basis upon which they will enter on next season's operations have been arrived at after careful consideration, with a view to increa- ' eing the present establishments, and providing the best facilities for working the dairy industry in Waikato. Looking as we do on the progress of this industry as one of great hope and importance in materially improving the prospects and position of orir agriculturists, wo trust nothing will intervene to interfere with the cordial relations that exist between the farmers and,the company, and that next season we shall see the industry gone into with much greater spirit and enterprise, profitable alike to producers and exporters. •■■ New Zealand Frozen Meat and Storage Company, Limited. Auckland, March 15th, 1888. Butter Department.

Dear Sir,—l deaire to obtaiu information to enable me to place before the directors of this Company, proposals for our uext season's butter-making business. It is necessary for these proposals to be considered early, as the time between the present date and October Ist (the date upon which the new season opens) will be required to 'make alterations or new arrangements for new districts, which arc to be opened up. New machinery will have to be obtained from England, and buildings will have to be erected, besides which dairy people themselves will need timely notice to make their own preparations. Enclosed yon will find reports from the Auckland "Bell," and the "Herald." Tlio former gives a description, of our jjluu of operative ju t| w mu(jufu,<;tuio o{

butter, the "Herald" deals with the position of this department from a financial standpoint. I request your perusal of these extracts, which give substantially correct statements of our affairs. We have now had four months experience with the "creamery system, and have during that time obtained positive data to guide us, instead of the unreliable estimate which we have hitherto worked upon, and our present propositions are based upon this experience. We are satisfisd that some such plan as that adopted by us will alone enable this province to produce a class of butter which may be expected to create an export trade of large dimensions, and this opinion is shared by all qualified persons who have seen the working of our establishment. We have shipped to the English market alone, this season over fifty tons of butter. This, owing to its being au unknown brand, and for other reasons connected with establishing a new business, will, we have reason to suppose result in a heavy loss. To properly market butter in the mother country will require a further heavy atiuual outlay in expenses, and for . some time to come profits may not be looked for. In consequence of these facts it is now a settled mitter that it will be needful for us to make a substantial reduction in the cost of manufacturing butter. We shall revise our department's expenses, and economise wherever possible, and shall seek to reduce the cost in every particular, so that the industry may have a chance to live. We shall have to ask milk-suppliers to share in this reduction—at any rate for a time, and until the industry, as for export, is established. According to the Herald 'article (attached) the price paid in Southern provinces for milk, from which the cream is to be removed, the milk being returned free to the supplier, is two pence per gallon of ten and a half pounds. This statement we corroborate. Our thought has been that the same price should be paid in this provincial district, but careful calculation shows tbatwe may possibly be able to pay as much as per gallon, and ! as we wish not to reduce the dairy farmer's income below the absolute necessity of the business, I propose that 2:} d nett cash be the price payable for each gallon of lOJilbs weight, the milk to contain a monthly average of not less than ten per cent of cream, the skim milk to be returned to the producer free of cost, the season to be for eight months, that is from October to May inclusive. I believe it will be possible to do business on these terms; and on these terms I am prepared to recommend the directors of this company to continue to purchase milk in districts in which business has already been done, and to erect creameries in suitable localities not hitherto provided with them. I may say, once and for all, that at present there is uot a shadow of a probability that the company will be able to give a higher price than that quoted above. Please inform me early if, in the event of this company arranging to purchase milk in your neighbourhood, you would be a supplier, and, if bo, how many cows would you milk.—Yours faithfully, W. Si-kac<;, Manager Butter Department.