GROWTH OF DAIRYING.

Franklin Times, Volume 9, Issue 636, 27 May 1921, Page 6

GROWTH OF DAIRYING.

DEVELOPMENT IN NEW ZEA-B LAND. I POSITION ON THE WORLD’S I MARKETS. I The annual meeting of supplied oi Papntoetoe was hold last eveni™ in the Town Hall, Papatoetoe, wheß too officials of the N.Z. Co-op. Dairl Company, Ltd., made their Mr Frank Waters presided, anl there were also present Mr #A. -■ Sinclair (assistant manager of thJ company),, Mr M. Shaw, Mr Dyne! Fulton, and Mr R. * McKenzie (klirecl tors), and Mr J G. Ward (manger oJ the Pukekohe Factory). I Mr Fulton, in addressing the meet! mg. dealt with the position touching! the sale of butter to the Imperial! Government, and the prospects of local trade. Mr McKenzie dealt with the question of quality of butter, and its bearing upon prices. In support of his statements, he pointed out that New Zealand butter brought from two to three cents more than Danish butter on the American market. That was sufficient proof that it was of high quality.

Mr Sinclair, speaking of the price received for last season's output, said that it was only through the power, acquired by co-operation that they were able to get 2s 6d per lb. When the Royal Commission was set up to take evidence, the officials of the company proved to their entire satisfaction that it cost 2s 4d to 2s 5d to produce one pound of butter. So sound was some of this evidence that the Royal Commission used it in its report to the Government. The Government, being persuaded of the high cost of production, allowed the company a fair margin of profit by taking 8d per lb out of the Consolidated Fund and giving* the butter to the consumer at cost price. That cost the Government somewhere about £750,000. When Mr C. Motion went down to Wellington at the beginning of/ the year, Mr Massey promised a free market for butter in New Zealand, but lie said quite definitely that he would take oil" the subsidy of 6d per lb. The Government did not commence storing butter at the beginning of this year. Hence they had no stocks to see the country through the winter. As a result of depleted stocks in southern cities telegrams were being daily received asking for butter for local requirements. To company’s supplies available the Government had decided to give a subsidy of 2d per lb and to make certain other ebneessiors until August 31 next. Payment of Honuses. Concerning the payment of bonuses Mr Sinclair said that the money owing from the Government had not all been paid yet and- final payments could not be expected yet. On top of this the butter being put in cold storage entailed an expenditure of £4OOO or £SOOO. However, 3d per lb, exclusive of deductions would be paid by the end of August. The final payment would be made at the earliest possible moment _ The management, recognising that the autumn has been rather severe, will endeavour to aisist farmers by giving extended credit on manure and other requirements on the farm purchased through the company. The Government grader congratulated the company on the high standard of grading maintained. The butter was sometimes 94 and 95 per cent. pure. This high quality- was accounted for by the fact that 72 per cent, of the cream was superfine. (Continued in next issue.)