CO-OPERATIVE DAIRYING.

Waikato Times, Volume XL, Issue 3205, 10 January 1893, Page 3

CO-OPERATIVE DAIRYING.

The fallowing article from the columns of a contemporary will be read with interest in New Zealand. It will, we believe, lie in the direction of co-opera-tion tliat dairying in this colony will eventually tend. ,In co operative action alone, can be found the means of removing that friction between the milk suppliers and the manufacturers, which is everywhere so apparent. The interest of all must be identical before any movement can be both permanent and progressive, wo commend the article to our agricultural friends ss containing the germ of a great principle, and one which will yet be applicable to the leading industries of the colony : "Much i as has been published of late upou the dairying of the countries of Northern Europe wliicli send butter extensively to British' markels, Denmark especially, no such comprehensive accounts of the systems of manufacturing and mnrkotinp pursued as ha? just been issued by the Board of Agriculture, under the title of "Dairy-Farming in Denmark, Sweden, and Germany," has previously been attempted. ' With respect to manufacture, the best buttcrniakers in this country have nothing to learu from the dairyfanners of Denmark or Sweden, and. German butter is not to be held up as a pattern to anyone. The best English or Irish butter is better than any that we import, and the chief cause for regret is that there is not enough of it, though every year increases the quantity. But English fannn's have a great deal to learn from their fellows in Denmark upon two points. The lirst relates to the co-opera-tive system of making great quantities of uniform quality, ami the second to the plan of marketing. Wc have a few butter factories in Kngland; but hardly any of them arc purely co-operative, .as most of the Danish factories arc. In this respect Ireland is ahead of England and Scotland; but even in the former division of- the kingdom many of the factories are partially or wholly of a proprietary character. Now, the margin of profit 011 dairy-farming is so small that it will not hear any degree of the "sweating" system: which prevails where proprietary, or even partially proprietary, factories beat down the price of milk. A farmer would not get rich very rapidly by selling milk at less than Gd per gallon; and yet at that price, butter would cost at least Is 3d per lb, even supposing that the separated milk pays the cost of manufacture, which is a very liberal supposition. Now, Is 3d per lb would be a very good average to obtain under our system of marketing unless a maker has "a large private connection, anil can dispose of his produce at retail prices. ' Therefore, the proprietor or shareholders of a butter factory who have to make a pro'fit must get their milk at less than 6d per gallon, whereas dairy farmers, in association, can pay their way if they make that price of their milk converted into butter. The Danish farmers, some years ago, found that they must dispense with the agency of the middleman if they were to get a satisfactory return for their milk by making butter for the English market, Therefore they adopted the system of co-oper-ative- factories. This, however, was not by itself enough, for they found that they must got rid not only of the middleman in the factory, but also of the like consumer of profits in the system of marketing They did not effect tho desired elimination all at once, As long ago asIBSO they, in association, began to deal directly with llie exporting merchants ; but ,in 1888-89 an association of about 100 .co-operative dairies was formed for the purpose of exporting butter to England without tho agency of tho exporting merchants, Tbo butter was consigned to ,q?ents in England, who made . the best prices they could obtain from talesmen iii this country, But theelimination of tho middleman did not even then stop, for the Danes ultimately succeeded in avoiding the English oomiuinsion agent to a "reat extent by entering into direct relations, first with the wholesalo butter merchants, and later with the retail dealers. I" somo of our chief towns they liiivo eveu avoided this measure of indirect tradin'"" by opening shops of their own for the saleof their butter to consumers. Here wo have tho secret of their comparative Success. Danish buttor does not averago Is 3d a pound in this ■ country, except when it is sold by retail; and it was only when the system of direct dealing was to a great extent established that the Danish export trade in butter was placed upon a satisfactory basis. The profit cannot be large in any case, and the Danish associates in the factory business were obliged to make the utmost of their separated nvlk in order to pay, their way, Tlicv have used it partly for' skim-milk cheese; and partly for the rearing and fatteniim of pigs, while now there is sonic talk of making it into feeding cakes, the strictness of the Danish margarine law Ins been of inestimable advantage to tin exporters of butter, as it has preservec the reputation of their produce. Hit Swedes, ill respect of the unportan! noints alluded to above,_ have followec the Danish example. Their co-oporalivi dairies are increasing in number, ant thov eliminate the middleman ■ almos Lirelv : while their law against the sal< of mwgar' nc as butter is said to lie effec bull' t