Dairying - the Refrigeration Revolution

Before 1882 Dairying had been a minor industry. It was a small scale localised operation run out of small mixed farms. Poor infrastructure (esp. transportation) mean that milk could only be supplied to local towns or villages. Processed into butter or cheese it could travel further but not much, especially in the summer. There was also the problem of consistency, each farmer (or his wife) had their own recipe so that every batch was different.

Dairy farms were thus generally small affairs dealing to the local population and barely making a living. In the Taranaki, Chew Chong, a chinese trader kept many small farmers from starvation when he began to purchase a local fungus from them. When refrigeration was introduced small dairy factory's sprang up to support the growing dairy industry and the Taranaki was ideally suited to this. Chong built one of the first factories, continuing to support his clients. He preferred to take their milk and produce his own cheese and butter, a more consistent product that sold more readily. Later co-operatives forced him out of the business but he remained a highly regarded member of the community.

Dairying opened up the Taranaki and other areas, giving many of the small farmers a leg up the economic ladder. The creation of co-operatives gave them the strength of many and allowed them to apply economies of scale. Wool was hard pressed by the depression but Dairying resulted in an economic expansion rather than retrenchment and the bankruptcy that devastated some parts of the South.

The export of dairy products helped to diversify the economy and expanded the settlement of New Zealand, along with the expanding infrastructure that pushed Europeans into every corner of the country. As noted in your handout New Zealand went from a single commodity economy (Wool) to a treble (Wool, Meat and Dairy Products). Expansion of this industry through the 1880s meant it was well placed to take advantage as the 'Long depression' dragged to an end.

So the effects of dairying can be summed up with the opening up of the North island, increased settlement with improved transport (road and rail) and communications. The development of new industries including dairy factories and abbatoirs for the processing of meat (creating more employment opportunities) . The expansion and diversification of the economy and finally the destruction of the Kahikatea (White Pine) which was used in the production of boxes for butter. (aka the butter-box wood)