DAIRY FARMERS MEET.

Hauraki Plains Gazette, Volume XXXIV, Issue 4521, 31 January 1923, Page 2

DAIRY FARMERS MEET.

DISSATISFACTION EXPRESSED. WAITAKARURU WANTS. A meeting of: farmers from Waitakaruru, Mangatarata, Torehapa, Maramarua, and surrounding districts was held at Waitakaruru on Monday to discuss the advisability of forming a co-operative dairy company. Mr C. Hayward, one of the conveners, occupied the chair. Mr E. Levers was appointed secretary, and there was an attendance of over thirty farmers. OBJECT OF MEETING. Mr Hayward (chairman), in welcoming the settlers of the back districts, stated that the interests of all parts o,f the district were identical. Together with Mr W. Stretton he had, at a meeting at Maramarua, been appointed to collect facts, etc., and report at that meeting. Mr Greville, of the “Dairyman,” had informed him that there was nothing in .the way of forming a company to deal with the product of of 3000 cows. The financing would be easy, as the banks would advance the money; and by having a small factory a good product could be obtained. He had asked several firms to quote a price for building and equipping a factory. Messrs J. B. McEwan, of Auckland, had written quoting £3OOO for a suitable building, and £4500 for the necessary machinery. It would be safe to say that £750'0 or £7BOO would be required. HOW OTHERS STARTED. Mr J. Cotter, chairman of directors of the Hinuer,a Dairy Co., wrote stating that they had started with 2000 cows, had had no trouble about finance, and were now very pleased with their position. He stated that they let two contracts'—one for the building and the other for the machinery.

Mr Hayward said that the finance could be arranged. It would be necessary to appoint someone to interview the banks. Previously he had had an open mind as to the advisability of supporting the N.Z. Co-operative Dairy Co or going in fur a local cooperative factory, but now he was sure the best would be the local factory. LOCAL FACTORY ADVOCATED. Mr W. Stretton advocated a cooperative factory of their own, saying that what they, were now paying on shares in the N.Z. Co-operative E*iry Co. would build a fatepry of their own. Mr Hayward and he visited Turua and inspected bath factories. One was, in their opinion, clean and up-to-date and the other was not so satisfactory. “WAS IT FAIR?” Mr A. Findlay said that as all of the farmers were shareholders in the N.Z. Co-operative Dairy Co. was it fair tp propound this scheme without asking the Dairy Co. to put up a factory ? If the company .refused, then they could go on with the scheme. Mr E. Levers said that if the Ijl.Z. Dairy Co. put. up a factory the farmers of the district would have to pay for it. They might as well put up a factory of their own, and control it themselves. Mr Parfitt said that, in his opinion, the meeting was on the ( Wrong track. There would be a large butter factory here in the futuire, and to strike out on .their own now would he detrimental, as 1 it would split the district. The results of the present organisation on the Home markets could easily be seen. The N.Z. Dairy Co. could buy the best bS'.ains in New Zealand and England, but a small company could not do this. A small company would have no chance of competing against Tooley Street merchants. It would* be unwise to break away from the Dairy Company, as there was a prospect of .them building a factory at Waitakaruru for the season after next. He pointed out that if farmers broke away from the Dairy Co. they would forfeit!their shares. In response to a question M»r Parfitt said a site had been allotted near the canal, and in his opinion it. was a suitable and central one.

Mr Hayward said that if they built a factory for 3000 ebws, and allotted one share for every 1501 b of butterfat, the shares could be paid up in three years. Then they would be an asset, as they would pay interest. The N.Z. Dairy Co. could call up all their share capital on giving two months’ notice, and the falrmers could not interfere, as the business was out of their, hands. If a small company was formed ,the directors would oe local men, and could be watched. Ho would not advocate a cheese factory, as it. would only be feasible if sufficient milk could be drawn from :i radius of four miles. PAID UP SHARES. Mr Stretton stated that if shares in the N.Z. Dairy Co. were fully paid up the basis of allotment could be altered, and each supplier compelled to take one share for evto’y 51b of but-ter-fat supplied. The suppliei s had no say in the control. Tn reply to a question, Mr Parfitt explained that proxies could only be used at an annual meeting if the secretary had been notified seven days beforehand. Mr Hayward, in response to a query, said that it would be necessary to sell through the Tooley Street, mer - chants, as is usual, but they could choose whom they liked as agent. They could pay a bonus every three months if they wished. The statement that the N.Z. Dairy Co. was unable to pay as butter was not yet disposed of was a fallacy, as it would be impossible to keep butter in England for that length of time. The Tooley Street merchants could take charge of butter in Auckland, and would probably pay market pirice. Land for a factory had been promised near Haley’s corner free to a local company. Water was available, and cartage to and from the wharf would not be very groat. In regard to a site near Waitakaruru township, it would be necessary to pipe water, and this’ would cost. £9OO for a pump an-1 a wa.tar tower, as without it the gravity system could not. be used. LAND AVAILABLE. Mr Fagan, owner of tjie proposed

top site near Haley’s corner, said the land was available for either the N.Z. Dairy Co. ar a local company to build a factory on. , Mr King said the N.Z. Dairy Co. always talked of two yeans ahead, and this was- absurd. He wanted to see something done a.t once. In response to a question, the chairman said he was not in favour of a dual plant, as it was not' possible to tell which product would command the best plrice when it was sold three months after it was made. He would not advocate cheese-lmaking as Lt was not practicable to cart milk more than four miles; Much discussion arose as to the best site. NO CONCRETE PROPOSAL. In answer to questions the chairman stated that the conveners had no concrete proposal to put before the meeting. .If the meeting decided to form a local co-operative dairy company provisional directors should be appointed. The Bank of New Zealand would advance 75 per cent, and take a first mortgage on buildings and putput. A merchant ihad offered the rest if the company gave him the handling of the output. He. guaranteed to pay the same as any other three factories they chose. He would charge the usual commission and interest. Itwould be necessary to bind the suppliers for, say, three years, .and this would be required by the bank. MOTION AND AMENDMENT.

Mr A. Findlay moved that the N.ZCo operative Dairy Co. be approached and asked to inimediately erect a factory. at the Majiuta Road site, and that in the event of them not giving favourable consideration steps be taken .to consider the advisability of erecting a co-operative factory. The motion was seconded by Mr KingMr W. Stretton moved as an amendment : “That a co-operative butter factory be erected immediately, and that the question of .the site be left in abeyance. This was seconded by Mr E. Levers. Mr Parfitt said the question of a site should be thrashed out, as the motion might exclude many from voting who might be opposed to the siteMr Findlay agreed .to alter his motion to the effect that the question of the site be approved by the majority of the suppliers. On the amendment being put the voting was: For, 11; against, 15. The motion was carried by 16 votes to 13 The chairman and the secretary were deputed to write to the N.Z. Cooperative Dairy Company en the lines indicated. Mr Stretton was of the opinion that if they had not done any good they had at least shown that they were not satisfied with the NZ. Co-opera-tive Dairy Co.

MAJORITY RULE.

Mr Parfitt moved a vote of thanks to the men who had convened the meeting. It had shown .that the majority of the farmers were for the NZ. Dairy Co. He also moved a vote of thanks to the ladies who had supplied luncheon. The motions were carried by acclamation.