NEW ZEALAND FROZEN MEAT

Waikato Times, Volume 2507, Issue XXXI, 4 August 1888, Page 2 (Supplement)

NEW ZEALAND FROZEN MEAT

AND STORAGE COMPANY (LIMITED). • The copies of fuithcr correspondence on dairying has been forwarded to us for pub lication : — Railway Department, Head Office, Wellington, May 14th, 1888.—Sir,—I have to acknowledge the receipt of your letter of tho 20th ulto. addressed to the hon. tho Premier, regarding- the rates for the conveyance of milk to tho creameries by rail for butter-making after reparation. On studying tho subject, it seems that one of tho great difficulties to be faced is that, it takes about 301bs. of milk to make lib of butter, and that the freight charges upon milk for long distances, even averaging so low as Id a gallon, would thus amount to 3d ou the lb. of butter, which evidently would be quite prohibitive. The disadvantages of the low milk freights are enhanced by the cost of free carriage on the empties. As regards tho freight charges on cream, since a gallon of cream will mako about 31bs of butter, an average charge of Id on cream would give a charge only one'third of Id per lb of butter ; while, if the butter itself is carried, it can bo taken the same distance for about l-6th of Id per lb. Evidently, if it can be so arranged, it is better for all concerned to carry the butter, as the rate, while merely nominal per lb, and one which would not be felt by the producer, although a low one yields some light profit; while on the other hand the milk rate is already reduced so low that taking into account the returned empties, it is a losing traffic to deal with. The distances from Auckland of the respective creameries are :—Pnkekohe, 31 miles ; Tuakau, 36 miles ; Ngaruawahia, 74 miles ; Hamilton, 85 miles ; Ohaupo, 94 miles. I should be glad to learn what are the points most convenient for retaining cieimeries. The cream despatched from Tuakau appears to be relatively a Btnallquantity. I should be glad to learn also whether the manufacture of butter can be conveniently carried on at the creameries. On some parts of the West Coast, the practice is to carry the butter by rail from tho creameries, instead of trying to carry 30 times the bulk in milk, and returning the empties, which would entirely kill the trad". The Government is very desirous of giving proper facilities for furthering the industry, and, with that object, wishes to elicit the fullest information. I notice that you have been paying too high a price for milk. Would you kindly inform me what has been the average price paid at the different creameries. Some enquiries on the subject of dairy working elsewhere have led to the information that it is found more advantageous to make cheese than butter, as it appears that 31bs of cheese, valued at Is Cd, can be made from three gallons of milk, while only lib of butter, valued at under Is, can h». made from the same quantity. I shall be very glad to hear further from you on this subject, which shall receive careful attention.—Edwin Mitciielson, Minister for Public Works.

Auckland, May 23th, 18SS. — The Hon. E. Mitchelson, Minister for Public Works, Wellington.—Sir,—l have the honour to acknowledge receipt of your letter, No. 2295, of "the 11th instant, relativo to rates of carriage of cream and milk forbuttor making. As regards cream, while tho cost of carriage thereon necessarily boars a much smaller proportion to the cost por pound ef butter, yet the railway charges on cream are still about twice as much as what would bo payable for its equivalent in butter ; and my contention is, that tho advantages in tho way of excellence, uniformity, and safety, to be derived from a concentration of butter miking at a common centre, whore proper appliances and cold air would be available, would warrant the concession asked for, viz.: That cream should be carried at the rate represented by its equivalent in butter. With regard to the milk, while fully recognising that it wonld_ be for the benefit of all concerned, if it could be arranged to carry the butter instead of the milk, yet, as I have before stated, our experience is entirely against any transit of butter during hot wcathor ; and we believe that any attempt to make the butter at our local erearneries would result in failure, for the reasons given in paragraphs 2, 3; and 4, under heading of advantages to system from a manufacturer's point of view, in my letter of 20th nlfco. I may state that I do not anticipate that any milk would bo received from stations over 30 miles distant from a creamery. This would, at per gallon, represent £-c) per lb of butter, being quite as much it would bear. The places to be selected for creameries must of course have reference to tho guarantees of settlers for milk supplies. I believe the places at which (if the system is to be continued) creameries will be worked next year would be Pukekohe, Ngaruawahia, Tuakau,Ngaroto, Cambridge, and Hamilton. The average price paid for milk at the creameries has been 2Jd per gallon (except at Pukekohe, where 3d was paid.) In all cases the skim milk was returned to the settler free, or an additional id per gallon was allowed for the value thereof; and I may state that at a large meeting of settlers at Pukekohe, it was admitted that 2jd per gallon paid in cash was equal to Bhd per lb. of butter, allowing Id per lb. as the equivalent of cash as compared with barter. Subsequent expenses have brought the total average cost up to 3d per gallon. With regard to your comparison as lo the advantages of cheese making, I am unable to speak with any certainty on this subject, but I may' state that I believe that the result of that industry in the north has been very unsatisfactory, I understand that co-operative cheese factories have been started at AVaiuku, Pukekohe, Hamilton, Cambridge, Paterangi, and Te Awamutu, and all are now stopped, resulting in heavy loss to the shareholders ; a private factory at Wairoa has started with the same fate, and tho only two cheese factories open are atTauwhare and Waharoa on the Waikato Land Association's property, it being under* stood that tho financial result of these is also unsatisfactory.

In conclusion, I would remark that the question appears to be narrowed down to the point as to whether the industry is worth stimulating by exceptionally low freights which possibly only require to be maintained until New Zealand butter has fairly established itself on tho markets of the world.—l have the honour to be, Sir, your obedient servant, Arthur 8011. Railway Department.—June 7, 18S8,— Sir, —With reference to your letter of May 2Dth, and the further information therein contained, I have now the honour to inform yon that the Government does not see its way at present to make further reductions in the milk rates. For your information I may add that careful enquiries have elicited the fact that Tarauaki butter producers have been able to net fd to Sd per lb for their butter, after paying all expenses of transit by land and sea, which is considered a satisfactory result to the farmers.—Edwin Mitciielsox. Auckland, N.Z., June 20th, JSSB.— The Minister for Public Works,—Sir — I have the honor to acknowledge receipt of your letter of June 7th, stating that the Government does not see its way to make further reductions in milk rates. With reference to the statement that careful enquiries have elicited the fact that Taranaki butter producers have been able to make 7d to 8d per lb for their butter, after paying all expenses of transit, I am of opinion that this statement is incorrect and illusory, except perhaps in tho ease of a very few buttermakers whose experience in no way affects the general aspect of affairs. Our experience, which is not inconsiderable, warrants the opinion tmit, although tho past season has been exceptionally favourable in point of suitable temperature, etc., yet the average price realised by the producer has been less than sd. It is possible that your reference might apply to a few dealers, but tho system I have been advocating, and for which tho freight reduction is necessary, would have insured tho price you quote for the producer,—l am, &c, Arthur Bull, Chairman,