MERGER OPPOSED

Gisborne Herald, Volume LXVI, Issue 20016, 15 August 1939, Page 6

MERGER OPPOSED

OKITU DAIRY COMPANY SAVING DISCOUNTED THE ANNUAL MEETING NEW SUPPLIERS GAINED Opposition to a proposed amalgamation of dairying interests in the Gisborne district was expressed at the annual meeting of the Okitu Cooperative Dairy Company, Limited, to-day. Mention of Die matter was made by the chairman of directors, Mr. E. H. Baker, who said he did so in view of remarks made at the annual meeting of the Kia Ora company. It had been said that amalgamation must come, but Mr. Baker stated that lie held the opposite view. If amalgamation took place, said Mr. Baker, it would do so at the premises of the Kia Ora company, which was the largest and oldest in the district. That was only natural. He had not yet found any desire for amalgamation among the Okitu suppliers. The Tolaga Bay company also had opposed any merger.

A suggestion that there would be a saving of d per lb. butterfat to suppliers' was problematical, Mr. Baker added. The Okitu factory had many natural advantages by being situated in Gisborne, close to Die town stores and with a big sale of cream. Healthy competition was an advantage in any business, and if there were ino competition there would not be the same incentive in service to suppliers .and in the manufacture of butter. The farmers' independence also would suffer. Co-oper-ation was all right to a certain point, but beyond that there was inclined to be too much complacency and lack of initiative.

Amalgamation Optional

Any amalgamation was optional among the companies, Mr. Baker concluded. The Executive Commissioner of Agriculture had stipulated that no compulsion would be brought to bear in the matter. Mr. C. J. Hamilton said that one of the arguments in favour of amalgamation was that supplies could be disciplined, and Okitu protested most strongly against such a statement. In moving the adoption of .the report and balance sheet, already referred to in tile Herald, the chairman said that this was the first time that he had presided at an annual meeting of the company. It harl been his desire since being appointed chairman a year ago to see that all suppliers had every service the company could give them. He also took the opportunity to welcome a number of new suppliers. The balance sheet, Mr. Baker continued, snowed that the company was in a very sound position. A final payment, including Id. already paid, amounted to ljd! per lb. In averaging 15ijd over the whole season on a basis of finest butterfat, the company was making a payment ttiat was in keeping with others in the Dominion. The payment at the farm gate equalled 16.638 d. As a result of the dry season, the company’s manufacture had declined 30 per cent and it was a tribute in the care \Vith which the affairs of the company had been handled, particularly to the manager, Mr. G. Forbes, and his stall', and also to Mr. 11. P. Hamilton, and his office stair, that the company had been able to make such a high pay-out. The plant, cne of the most modern in the Dominion, had helped considerably. Staff Congratulated

He congratulated Mr. Forbes and his staff on winning the Auckland championship, and oilier awards in Auckland, Hamilton and Palmerston North. That Mr. Forbes had been able to secure the Auckland championship two years, in succession reflected much credit on the efficiency in the factory.

The company wished to give its suppliers' every opportunity lo increase production. By purchasing better bulls, by herd testing and replacement with better cows, and by fertilising and improved farm management the suppliers could substantially increase the factory output, and the company would give the suppliers every help in these directions. Hard seasons such as that which had just been passed through were blessings in disguise, teaching the farmers to make better provision for lean periods and to impove rtheir farm management methods. In conclusion, Mr. Baker thanked the suppliers for their loyalty te the company, which, while gaining a number of new ones, had not lost one.

Retiring Directors Rc-elcctcd

Mr. C. J. Hamilton seconded the motion for the adoption of the report and balance sheet, and said that the company 'had a very fine staff. Mr. Morrin’s success in his factory manager's examination at his first attempt was a tribute to the assistance given by the factory manager, who also had demonstrated his ability, with a competent stafT, in 'attention to the factory plant. The retiring directors, Messrs. E. H. Baker and G. J. Whitt, were re-elected unopposed, and Mr. M. J. White was re-appointed auditor unopposed. A motion of thanks, proposed by Mr. P. Robertson, was passed to iMr. J. Higgins for his assistance to the campaay as a director since its inception. Mr. Higgins had retired from the directorate because be had discontinued dairying as a result of being flooded out. The chairman expressed the sympathy of the company in IMr. Higgins’ misfortune, and the motion of thanks was carried with acclamation.