WASTE IN DAIRYING.

Dominion, Volume 9, Issue 2647, 18 December 1915, Page 8

WASTE IN DAIRYING.

TMANY COMPANIES

PROPOSED AMALGAMATION

Far some time past (says the Auckland "Herald") the serious attention of some, of the large co-operative dairy companies of the Waikato district has been ceiitred on a. proposal to secure a general. amalgamation with a view to remedying certain disabilities which are said, to be a cause,of common complaint among producers and manufacturers. A ■number ■of conferences of representatives, of dairy factory companies havo been lield, and a general scheme of amalgamation has now beep devised. It is stated that all companies, operating in the South Auckland district will be invited, to participate in tho scheme,; and further, meetings .. will shortly bo held to advance tho scheme another step. The proposals provide'for: 1. A purely co-operativo company, and to .ensure its co-oporative entity, being maintained it is proposed to distribute all profits on a butter-fat basis, provision, being made to relieve "dry shareholders" of their shares-under suitable terms'.and conditions.

2. lie taking over by the new company of the assets of the several companies'which join. • 3. :The issue' by such new company, of shares in lieu of those now held in present' companies, tubject to adjustments ■•to meat- varying conditions. 4. The division of the territory occupied by the proposed company into "electorates," the shareholders in such electorates to appoint one of their number to the directors' board, tliug ensuring representation from all districts. The manufacture of either butter or cheese, and if butter .by creamery or liy home separation system, according Ito tire wish of-suppliers. It has been pointed out that those connected, with the dairy , business have for some time past-deplored the, enor-mous-loss to the producer which has results from the overlapping of dairy companies, there is a butter factory in the T© Aroha district,' but 1 cream is be-' ing sent ...from there tb Paeroa, Nga-'. ruawahia, and Frankton Junction, instead of being made: into butter at the local factory, while-in the Waiuku district, where there is a butter factory, seme cream: is carried by boat to One-, hunga and railed to Mercer to be made into butter, thus involving . enormous cost, as well as deterioration of quality. In other centres rival companies' are running as many as three cream carts through the same - district, , while the work could be done by one cart at less than half , the cost. In other places two butter, factories will be found side by Bide, or a creamery, a cheese factory, and a home separation oart are competing' for the: business ' with varying success: according to the respective prospects for the time beiiig of butter and cheese. - ' ' -

- These and similar follies have resulted in a loss to the producers of the Waikato of from £30,000 to £50,000 per annum, and .even more important still, 03' far as the future iB concerned, in a deterioration of the quality of tho product. While the war continues markets nro good, and the demand is strong, but there is every probability that after the war prices mil he poorer and markets weaker, 60 the producers are taking. action to ensure economy by cutting out. overlapping, and higher quality by :turnihg products to best possible account.

It is estimated-that the advantages in'a few years would,niorft than total the'capital "of tho combined organisation. If the' scheme is generally adopted,! the turnover of the new'company will probably exceed two_ millions per annum, most of which will represent

business done in England. With.' mich largo interests in Britain, it is expected that the directors of the proposed coins pany will give consideration to sending a'representative to London as a, means of securing better returns from there, and to attend to the purchase of articles of general utility for the company's suppliers", thus offering increased advan, tage in this respcct also. When'the propositions have been, approved by tho directors of the several companies they will, of course, be sub. mitted to the shareholders for adoption.