Report.

On the 28th May, 1890, it was decided to form this association, under the name of the New Zealand Dairy Association, this name being afterwards changed to the New Zealand Middle Island Dairy Association, as it was found that a firm in Auckland (Messrs. T. A. Reynolds and Co.) had already adopted and registered the name New Zealand Dairy Association.

On the same date a secretary (Mr. J. R. Scott) was appointed, who, with a sub-committee, was instructed to draw up rules, and issue a circular pointing out to dairy-factories and others interested the advisability of forming an association, and the benefits likely to arise therefrom. This was done, and at a meeting of the committee held on the 29th August, the secretary having reported that sufficient support being now forthcoming, it was resolved that the association as proposed be now formed and commence its work.

Fourteen of the leading factories, extending from Ashburton to Woodlands, became members of the association. The first matters to come before the association were those of steamer-freights and railway-charges, and these the association have used their best efforts to have reduced. The shipping companies reduced their freights 1/8d. per page 20 pound in cool-chamber to London, and Mr. Brydone (the president, now in London) has been instructed and empowered by the association to make arrangements for a reduction to ½d. per pound without primage, and, if possible, to arrange that freight be made payable in London. As the association will be in a position to guarantee 1,200 tons of cheese for London, and a considerable quantity of butter to any shipping company during the ensuing season, it is thought that this reduction in freight will be obtained. The union Steamship Company have promised to consider the matter of giving the association a reduction in freights to the Australian Colonies.

The committee and the secretary have done what they could to get the Railway Commissioners to reduce the rates on cheese for shipment to London to grain rates, but as yet without any effect, although the Commissioners have the matter still under consideration and are making inquiries as to the extent and prospects of the dairy industry.

The committee have also given a great amount of attention to the question of improved cool-chambers in the steamers, and are prepared to submit plans for the proper ventilation of the cool-chambers, and to make a shipment early next season in a cool-chamber fitted with a plan of ventilation they recommend. Great attention has been paid to the shipment of cheese and butter, and the Railway Commissioners have instructed all Station masters to provide covered wagons for all shipments. The secretary has personally seen to the prompt shipment of each lot of cheese, and, the association being able to take the whole or a large portion of each ship's cool-chamber, shipments have been so arranged that both cheese and butter have been promptly transferred from trucks to cool-chamber, and the delay and damage caused by goods having to remain in trucks for some considerable time has thus been avoided.

The matter of packages has also occupied the attention of the association, and they issued a circular, with a lithographed plan of the case for cheese they recommend, and feel sure that its adoption will lead to a saving to factories in freight, as the weight of wood per ton of cheese is much less, and, the measurement being less, we shall be in a position to show shipping companies that less space is required to carry the same weight of cheese, and consequently that we are entitled to a reduction in freight. The cases are strong and approved in London.

This association has also before it the matter of cool-storage, and they are prepared to give support to any company or person erecting cool-storage at the shipping centres.

The committee have also arranged with a first-class company to insure their associates' factory-buildings, stock, and plant at a low rate—viz., 19s. per cent, per annum, and marine insurances to London at 12s. per cent.

The committee have also given an order for all the dairy materials page 21 required by the associated factories for the ensuing season, and a considerable saving to all concerned may be looked for in this matter.

The Government have assisted the association, and they have been able to appoint and send Home in the s.s. "Doric" in February, an expert to watch and report upon the cheese and butter in transit, and the treatment on arrival. Mr. Cox, of the Geraldine Dairy-factory, was appointed, and has arrived in London, where he is now pursuing his investigations. His report will come to hand shortly no doubt, and will be published and circulated.

Mr. Cox reported that the "Doric" shipments arrived in good order, and one of our friends in London also says, "The large shipment ex 'Doric' has been landed in as good or better order than has hitherto been the case, and no doubt, with Mr. Cox on board, special attention has been given to the temperature."

The first shipment by the association was by the "Ruapehu," on the 19th December, and the last by the "Duke of Buckingham," on the 22nd May. There is a further shipment to go by the "Nairnshire" on the 20th June.

The association have already shipped 9,394 cases (623 tons 19cwt.) of cheese to London during the season, in the following vessels: "Ruapehu," "Matatua," "Doric," "Fifeshire," "Mamari," "Pakeha," "Oterama," "Rimutaka," "Ionic," "Duke of Bucking-ham."

The association have also shipped 279 packages (10½ tons) butter, with most satisfactory results.

Primage to the extent of £122 16s. has been received by the association and handed to the shippers. The reduction of one-eighth on the amount of cheese already shipped means £716 6s. 8d. saved.

London brokers generally report a marked improvement in the quality of New Zealand dairy-produce during the past season, and the results of sales of the produce sent Home through this association have proved very satisfactory so far.

This association have in view the appointment of their own broker or brokers in England and Scotland to deal with New Zealand produce, and they are now considering this matter, which they deem to be one of great importance to this industry, but which demands a considerable amount of consideration, and which must by no means be hurriedly gone into. In the meantime the best and most reliable information on this point is being collected by thoroughly-qualified persons. The membership of the association will be largely increased this year, as many dairy-factories, both in this Island and in the North, have intimated their intention of joining. The secretary has visited all the factories at present associated, and they all expressed themselves well satisfied with the results of the association's work and with its aims and objects.

The manufacture of butter for export has not been given much page 22 attention to in the Middle Island generally, especially in the southern portion, and yet results show that where the butter manufacture has been carried out on the factory system no better place for the industry can be found than in Otago and Southland; and we advocate the combination of farmers in places where other factories do not exist in erecting small butter-factories in the centre of such districts, with small separate creameries acting as feeders to the main or centre factory.

The question as to whether London is to continue to be the place to which all New Zealand produce is shipped is an important one, and will be watched by this association with interest. Liverpool people are giving the matter attention, and it is a fact that it is the large population in the northern and midland counties of England who consume our produce—butter, cheese, and frozen meat; and our wool also goes largely to the north of England. There are better, quicker, and cheaper facilities for quick discharge of vessels in Liverpool; and as at present the railage between the northern counties of England and London comes out of the pockets of New Zealand producers, and in view of the fact that the great bulk of our imports come from the north, and could be more cheaply shipped at Liverpool or Glasgow, the question of direct communication with either of these ports is one of great interest to New Zealand producers. In conclusion, your committee hope that this association will have the support of all the butter-and cheese-factories in New Zealand, because its aims and objects are for the good of all who have an interest in New Zealand dairy-produce; as it aims at having a strong union of the whole dairy industry, co-operating to reduce the heavy freights and charges which have in the past and still continue to almost strangle a young and growing industry which with fair treatment will be a source of prosperity to New Zealand for ever, and will to a large extent be the means of settling a happy and prosperous population on the land; because it wants all to cooperate in imparting information and instruction that will lead to increased excellence in manufacture; because it desires to secure for all co-operating the best and cheapest mode of putting our New Zealand produce on the best markets; because it has no motive but the welfare of all co-operating, and is not in any way carried on for any one's benefit or profit, but for the good of all.

The statement of income and expenditure laid before you, duly audited, shows that the income for the past year, including £125 from Government, was £190, and leaves at the end of the year a balance of £58 17s. 3d. to the credit of the association in the Colonial Bank. There is £125 to come from Government when the dairy-expert report comes to hand, and there is also the expense of the dairy expert to meet. Your committee, however, feel quite sure that the expenditure will be within the income. The items of expenditure up to end of year are— page 23

	£	S.	d.
Secretary's salary	52	0	0
Postage, stationery, printing, advertising, telegrams, &c.	20	19	5
Expense dairy expert to date	58	3	4
	131	2	9
Cr. balance in bank	58	17	3
	£190	0	0

The Government have shown a great interest in the dairy industry, and have also approved of the aims and objects of this association, and we think that by all joining this association we shall be able to lay before them in a proper and united way the matters that we deem needful to the furtherance of this great industry, which we know has the Government's best wishes; and we feel sure that any help we need from Government will be forthcoming, either in legislation or otherwise.

Balance-sheet.

Receipts and Expenditure as at 27th May, 1891. End of first year.