Dairy Industry Statistics

The Dairy Industry on the North Coast of NSW; an Economic Study, by J.G. Bird. Pub by Uni of New England 1962.
 

Northern Star 7Jan33: 525 Registered Dairies Kyogle Police District

NSW Dept of Agriculture Rural Statistics Bulletin:
Registered Dairies 31Mar1951: Byron 575, Gundurimba 611, Kyogle 837, Terania 786, Tintenbar 497, Tomki 488, Tweed 763, Woodburn 190. Total = 4,747. Manning Shire with 1245 dairies, largest number in state. (1,006,917 acres verses 858,000 at Kyogle)
Reg Dairies 31Mar1955: Byron 599, Gundurimba 587, Kyogle 865, Terania 791, Tintenbar 502, Tomki 488, Tweed 778, Woodburn 190

Personal Papers of Prime Minister Page. Speeches by Sir Earle Page (re Health Week, National Welfare Fund, Queensland development, National Health Scheme, Country Party, etc) - National Archives Document Series No M4330, Barcode 4681251, Control Symbol 11, Date Range 16Jun52 - 28Oct52:
Pages 54-58: History of Dairying Industry, of Government Policy and Butter Prices. Dairying Statistics wef 13Aug52:
On ascendancy of Coalition Govt late 1949 dairies and cows again rapidly expanded - until late 1950s
1Jul49 - Backdated subsidy at rate of 2½d per lb commercial butter granted to dairy farmers
1Jan50 - Additional subsidy 2½d per lb... Total subsidy 1949/50 = £8million
1Jul50 - Guaranteed return to farmers increased to 2s. 6.27d. per lb... inclusive of subsidy increase to 10.9d per lb. (plus subsidy for free milk to schools to cost £1.5million - Page Papers NAA same series, Control Symbol 8, page 49. NSW Govt already supplying 39% school kids.)
1Dec50 - Guaranteed return increased to 2/8.44d per lb due increased labour costs to cover increase of £1 in basic wage. Total butter subsidy 1950/51 = £15million
1Jul51: Guaranteed return now 3/6.02d/lb and subsidy increased to 1/11.4d/lb. Total butter subsidy now £17.8million
1Jul52: Guaranteed return to farmers now 4/1.29d/lb butter

[Page Papers NAA doc same series, Control Symbol 10, page 36, address to Casino Dairy Farmers 25Mar52: ...I fought in the Federal Parliament unceasingly from 1942 to get an adequate subsidy which I estimated was at least  £14million per year. (Labour introduced half this subsidy.) I was unable to secure this subsidy... so the industry declined to such an extent that in 1947... the Labour Party brought in a plan, which for the total production of milk and cream for butter... was fixed at an annual base rate of 2/- per lb... Certain lines of these cost factors were fixed too low, notably the wage set aside for the dairyman himself...and as a result inflation concealed by price fixing and costs ....raced faster than agreed adjustments...
Historical butter machinations also contained in Page Papers of 1947 on debate on Dairy Export Control Bill, 22Oct47, NAA doc same series, Control Symbol 1, pages 12-20 and general dairying page 148 (26Feb47). And
Page Papers of early 1949, NAA docs same series, Control Symbol 6, pages 60-62, address Dairy Industry Grafton 6May49, pages 76-78, Dairy Industry General Apr49. And
Page Papers of late 1949 election campaign, NAA doc same series, Control Symbol 7, pages 11, 25, 130, 135. And
Page Papers of 1958/59, NAA doc same series, Control Symbol 17, New Dairying initiatives following period of low prices and drought, 21Oct58, pages 94-96, and page 65, 28Nov58.]

Cows in commercial dairies as at 31Mar
from NSW Statistical Registers (excludes heifers and calves)

The Australian Dairy Industry 1961-62 to 1963-64: An Economic Survey. Published by Bureau of Agricultural Economics, Canberra Dec1966.

1.      Land values of North Coast farms were the lowest of any dairy region in Australia.

2.     Total farm receipts of North Coast dairy farms, with an average of  £4933, were the lowest in any dairy region in Australia

3.      Average net farm income of north coast dairy farms was lowest in Australia. = $1026 verses Aust average $ 2397. The yield per cow was among the lowest of all survey regions and there was some evidence of inefficient employment of family labour resources. Survey results suggest that many farmers in the low-income regions continue to operate by not fully replacing worn-out equipment and by limiting wages for family labour. Net cash income, therefore, becomes important. In these two low income regions (other = Moreton region QLD), average net cash incomes were around $3000 or almost treble the amounts shown for net farm income.

4.      38% of farms NSW earned less than $1000, but on north coast was 55% = highest proportion in Australia.

5.      Greatest concentration of dairy farms in Aust = Far North Coast

Regional History of the North Coast. Published by Dept of Planning, Grafton, 1989.
Dairy Industry….
The peak of the industry on the Northern Rivers was reached in 1933-34, when it produced almost 60 percent of all butter in New South Wales. However, at the same time, its viability was being undermined by its very success. With its relatively low capital and skill requirements the industry attracted many people seeking refuge from the Great Depression while centralised price supports were instituted which kept inefficient producers in the industry. This meant that many small farms were cushioned from the full effect of market forces, when the trend in agriculture was to amalgamate farms into larger, more efficient productive units.
Dairying on the Northern Rivers retained the family farm long after it became uneconomic in other rural industries. Too many farms were producing for a static and even declining market. Not only did overseas markets shrink but the price of exported products fell. Margarine also took away a goodly slice of the domestic market. In consequence, the average net farm income of the north coast dairy farm was the lowest in Australia in 1963-64.
In 1969-70 a Bureau of Agricultural Economics survey found that north coast dairy farms had the lowest farm income in the state of New South Wales and one in four north coast dairy farmers was found to be in poverty. In 1970, 53% of dairy farms surveyed were family farms, which had passed down from father to son; of these, only 7% employed any labour from outside the family.
An attempt by north coast dairy farmers to cash in on the supply of liquid milk to urban areas did not address the fundamental structural problems of the industry. North coast farmers had long been butterfat producers and their milk was less suitable for the liquid milk market. Since World War 11 dairy farmers had been leaving the industry in ever increasing numbers as its viability declined.
Butter factories have been closing down since the war, partially due to the changeover to bulk milk shipment to central factories by road tanker, but also since many milk suppliers left the industry. The Coramba and Coffs Harbour butter factories closed down in 1950. The Casino and Dorrigo butter factories both closed down in the 1970s, as did many small factories in the Tweed Valley. The most notable closure and the one which really underlines the current condition of the industry was the recent closure of the huge Norco factory at Byron Bay.

Northern Star 26Jun28: Norco now most extensive butter making concern in Australia. Year ended 1927 had turnover of £2,114,211. Recent improvements in herd testing led to increase of 10lb of milk and butter per cow. 12mths to Jun27 Richmond-Tweed produced 16,000 tons of butter. Clarence, Bellingen and Dorrigo = 4400, Nambucca and Manning 6400, Gloucester and Hunter = 6400, Illawarra and Berrima = 1700, Moruya and Pambulla = 1600, Tamworth and Northern Tablelands = 400.
Richmond – Tweed = 251,951 cattle. Largest number in any PPU district in state.

Paterson Scheme introduced 1Jan26. Imposed levy on all butter and cheese produced in Aust and paid bonus on all butter and cheese sent OS. Returns from OS considerably lower.
11Jan32: Butter Equalization scheme.
11Jan34: Farmer’s Relief Act.
May34. New scheme under control of Commonwealth Dairy Produce Equalization Committee to give equality of returns to manufactures to maintain and stabilize Aust prices for butter and cheese

Despite all the pledges of the voluntary Paterson scheme, breaking of the gentleman's agreement not to dump on each others markets was doomed to failure without an effective policing scheme. Coraki and Casino butter co-ops, not then members of Norco, were sprung dumping butter in Brisbane in early 1931.
The Queenslanders were the first to start questioning the worth of the Paterson Scheme. At a farmers meeting 13Jun31 Mr James Purcell, Chairman of the Queensland Butter Board and a member of the Commonwealth Export Control Board declared the Paterson scheme most probably would cease to exist in the near future... and propounded a new scheme to take its place - a Commonwealth butter pool and equalisation scheme which would assure an Australian price of not less than 1s 9d a lb. He was absolutely certain the Commonwealth butter pool would eventuate and thus place the dairying industry not only in Queensland but in Australia on a sound footing.... Mr Purcell pointed out that vast sums of money would go to the producers by having a standardised price for butter and with the establishment of a new scheme there would be no incentive for one State to dump its supplies of butter onto its neighbour's markets.
On 11Jul31 the Queensland branch of the Economic Society of Australia and New Zealand were advised that while the dairy industry 'is a big asset'... the fact remains that in order to give the farmer a very frugal living, the home consumption price has been increased to provide a bonus on exports, which can only be sold at world's parity. ... While it is right that the farmer should receive some compensation for the inflated price he pays for his requirements, due to high protection in the secondary industries, it must be frankly admitted that no industry can expand on such insecure foundations....
By mid Jul33 while NSW was debating the parlous state of the butter industry following the lowest ever prices, Mr Purcell did not mince matters when he said the Paterson scheme, legalised or otherwise, was useless for our purpose.
And in Oct33 at a meeting of the Richmond District Council of the PPU it was said that Queensland was the only State that had taken a lead... in implementing a butter stabilization bill, while NSW was dragging the chain.
Early 1934 Mr Purcell appointed as Chairman of Provisional Dairy Industry Stabilization Board. General Manager Norco on committee.
The Paterson finally ceasing operation on 25Apr34 and the Commonwealth Dairy Produce Equalization Committee came into being to oversee new State Dairy Produce Boards which had the power to fix the amount of butter for domestic consumption within States, regulate the movement between States to prevent 'dumping', and place the surplus to Australian requirements under the export control of the Equalization Committee.