DAIRY MERGER.

Hokitika Guardian, 30 March 1926, Page 2

DAIRY MERGER.

MOOTED IN CANADA. VANCOUVER,, Feb. 10. In another obvious effort to endeavour to reestablish herself in the furious competition waged by Australia and New Zealand in the British dairy markets, the Canadian dairy interests are concentrating forces to initiate a. new campaign for trade in England and elsewhere, and the formation of a holding company, capitalised at around 20,000,000 dollars, merging dairy companies throughout Canada, is mooted, according to a dispatch from Ottawa, where it was reported that the shareholders of the Producers’ Dairy Company of Ottawa are likely to ho called upon to vote on entering the big combine. Under the suggested scheme a holding company for many of the dairies of Canada, extending from coast to coast, would he created. The chief source of capital behind tho project emanates from Quebec, Montreal, Toronto, and Winnipeg. If the proposed venture materialises, which is expected likely, considerably more than tho distribution of dairy or farm products will be undertaken. It will include such plants as manufacture glass bottles, wooden cases used in the distribution of milk in bottles, and perhaps one or more industries kindred to the dairy trade. Bower Henry, president of the Producers’ Dairy, admitted he had been approached in Ottawa, but he did not think it advisable to reveal the name of the big holding company which within a very short time may take over soni.? of Canada’s important dairies and dairy deliveries. If producers go into the merger tho amount of money that will be involved will he nearer 700,000 dollars than 450,000 dollars. Consideration of the proposal to merge or amalgamate with the big Dominion project, is being given serious attention.