The representative. [volume] (St. Paul, Minn.) 1893-1901, 1899-05-18

Much OF the recent extensive develop
ment of the Australian dairy farming in
dustry is due to the practical application
OF the cooperative principle, especially in
New south Wales. where the leading pro-
duce agents in Sydney noting the tendency
to Independent action on the part of the
producers having for its object the aboli-
ton or the middlemen, have introduced q
profit sharing system which, SO far, appears
to AFFORD unqualified satisfaction to all con-
cerned: The Sydney produce agencies have
formed themselves into a number of COM
panies, each embracing a distinct sphere of
acton, chiefly in the northern coastal dis
trlcts OF the colony. Each company has a
large butter factory established at some
convenient point, generally at some river
port with creameries in suitable locali
ties in the surrundisg district. The local
dairy farmer takes his milk each day to
the nearest creamery. where it is tested in
accordance with given standard, and the
value entered to his account. From this
point the company takes charge of the milk,
which is transferred to the butter factory,
the dairy farmer having no further trouble
In the matter In several instances he
shares with the company any increase in the
rate OF profit, but the great advantage of the
system to him consists in the fact that it
enables him to obtain a quick return for
his labor. At the end Of each month he is
paid, without any deductions, for the milk
supplied by him, and can calculate the
amount to farthing. Again the richer the
milk, the higher the price, hence he has
every inducement to improve the character
OF his herds, being assisted in this by the
companies, which have every interest in
so doing. In fact. the companies and pro-
ducers are wholly dependent on each other.
The former could not undertake the work
OF production, save at loss; and the
latter have not the means of establishing
butter factories on an extensive scale. Most
mt
of many thousand pounds EACH and deal
with enormous quantities of milk daily. The
butter factory established less than three
years ago by the New South Wales Fresh
Food and Ice company, at Grafton, on the
Clarence river, is said to be the largest in
the world. The pasteurizng process is en-
ployed in most Of the butter factories, and
a certain standard of quality maintained
a result absolutely impossible under the
old fashioned system, when each dairy farm
er made his own butter without the as
sistance of other than what were little bet
ter than primitive appliances. Under the
new system, the dairy farmers freedom
OF action is left unimpaired. He may pro-
duce as much or little milk as he
chooses, devote his attention to other
branches Of rural industry, and forth but
he always has a market for his milk,
and it is the interest of the companies to
encourage him in increasing his supplies.
On the 31st of March, 1898. there were in
New South Wales 1871 butter factories 294
creameries, IS cheese factories butter and
cheese factories and butter, cheese and
bacon factories, forming a total of 502 es-
tablishments but since the date mentioned,
the number has become considerably in
creased. The quantity of butter made dur
ing 1928 was 90, 4O9, 966 lbs, of which
%, 713, 500 lbs was factory butter. Of this
latter, 6,526,673 lbs, value 925S725, was
exported. chiefly to the British market,
in 1897. the returns for 1S98-'99 showing a
large increase. In 1886 the butter exports
totalled only 8,047 lbs, value G2,862; show
ing how rapidly the industry has expanded.