N.Z. DAIRY COMPANY.

Hauraki Plains Gazette, Volume XXXIV, Issue 4580, 29 June 1923, Page 2

N.Z. DAIRY COMPANY.

PAEROA* BRANCH. ANNUAL MEETING. The annual meeting of suppliers to the N.Z. Co op. Dairy Go’s. Paeroa factory was held in the Soldiers’ Club oh Wednesday evening last. Mr T. P. Vuglar presided over a gathering of some twenty-five suppliers. Mr G. Buchanan (local director), and Mr W. H. Blakeway (branch secretary) were also in attendance.

Mr A. J. Heighway, of the ■ Company’s executive staff, delivered an interesting address,- in which he related the history of the huge co operative concern during the last year, and some important and educational facts concerning the business were disclosed by him. He gave figures showing how the dairying industry and the Company’s supply had advanced during the last four years. “Four, years ago the butter manufactured by us totalled IO’.OOO tons,” he said. "The next year* 12,600 tons; the nexr, 18,218 tons, and last year, 22,072 tons.” Continuing, he remarked that this tremendous expansion in business tended to give the Company a position of strength in regulating the markets to advantage and obtaining for the farmer advantages that under other conditions would not be gained. Referring to the amalgamation, he said that one of the chief arguments for it. was that it would result in the’ quality of the manufactured article being improved, and then he went on to deal with the days when the grading system was commenced, and since from year to year the improvement in the quality of the primary products has been tremendous. Four years back only 60’ per cent, of the to’al butter manufactured was graded as superfine, 32 per cent, as firstgrade, and 8 per cent., as secondgrade ; the following year, 72 per cent, superfine., 20 per cent, firstgrade, 8 per cent, second grade ; two years ago, 74 per cent, superfine, 18% per cent, first-grade, 7% per cent, second-grade; while for the season just closed the standard had been bettered to the extent of 87.76 superfine, 9.41 first-grade, and only ’2.83 second-grade. The credit for this improvement was due to three factors: in the first, place to the farmer for the care and attention he had given to details ; in the second place .to the instructors in these subjects for their efficiency; and, thirdly, tp the fiactories where the facilities for manufacturing have been bottered unt.il now almost perfect.

Mr Heighway then dealt in detail with the rise and fall of the London market, and by means of a chart he illustrated his remarks. He said that the total monthly consumption of the London market represented about 20.000 tons, of butter/ and in December last there were some 23,000 tons in stock and due to arrive. The directors were ..then set the task of finding a way to protect as much as was possible the price for Anchor butte 4 and, luckily* they had a precedent to guide them. They benefited by the experience gained when Mr Goodfellow sold the 1000 tons of butter to America at 2s 6d per lb. and the directors were led to again, ask America if she would take any butter, and after Refusing one offer it was decided to sell her 120.000 boxes at Is 5d per lb f.o.b. Auckland*'on the conditions that, the butter would be consumed in'America and that the cash for the purchase of the shipment would be paid into the bank before the butter left New Zealand, in passing, the speaker remarked that for eight days the Te Koa, the ship which carried' the butter, was delayed in Auckland until the- purchase money was paid into* the bank. This sale hnd the desired effect upon the Home and not only did the Ne.v Zealand Dairy Company benefit by the move but a!so all other dairy.companies in the Dominion, a fact which went to illustrate the effect that the volume of the New Zealand Dairy Company’s supply had on the market. Mr Heighway explained in full detail the history of the American buftter deal and the far-reaching effect on the market when some of the butter was, through a forced breach of faiths thrown back on to the London market, Details were also given as to the bearing this had upon the season’s final realisation due to be paid to suppliers.at the end of August. THE BOX FACTORY. Relating to the establishment, of the box factory about two years back, he cl imed that this new enterprise had already meant to suppliers a saving of £50,000 as a result of reduced costs. To confirm his arguments he showed that during the first year better boxes which on the outside market were casting 2s lOd eacii their own factory turned same, out at 2s each, and in the second year the cost was further reduced to Is Bd, and it is anticipated that this year tiie average cost will be Is 6d. in this instance, also, other companies in the Dominion were benefiting as the result of the enterprise of the New Zealand Dairy Company, for in order to gain a new market the company which was supplying the N.Z.D.C. with boxes had to “ cut ’ the price of its manufacture. THE COAL MINE. Last week marked the beginning of production from the company’s coal mine, he continued. At present it produced 200 tons a day, but it was hoped’ that six or eight months hence it would be turning out from 500 t.o 600 tons daily, thus providing an adequate supply for all the factories* and al?o the suppliers.. The official opening of the mine would take place on July 25, when special trains would rm from Frankton to Huntly, and’ all suppliers were invited to attend. ADMINISTRATION REDUCED. ’ The company was always endeavouring to devise methods whereby it could manufacture the produce and conduct, the commercial side of things more economically, said the speaker, and, as evidence of such, it had reduced the levy of Id per lb butfenfat for administration purposes down to l r scl per lb. butter-fat. (Hear, hear!) WORKING CONDITIONS. it has -been candidly admitted by ]

overseas experts who have inspected our factories that they, and the. process of manufacture, were as perfect as it was humanly possible to get, said Mr Heighway, but they had a ' lot to learn aboujt marketing. : DAIRY PRODUCE POOL. The Dairy Produce Pool Bill had been received and would possibly be* cotae law. Such a m'easure offered three outstanding advantages to the producer. It would enable shipping to be dealt with to secure greater economy in freights and'faster, and more regular services. This would enable advertising to be carried out . on a basis equitable to the whole in- - dustrY, and, most important of all; it would permit of alternative markets being developed in the interests of , the country and some measure of J control being exercised in feeding markets instead of injudiciously flood- , ing them, as was now possible, by the heavy extra production of butter in New Zealand at the present time. It , was vital to the producer to organise ;■ marketing, otherwise he would not receive the full reward for bis labour. FRESH MARKETS. The Directorate’, had an eye to ; establishing new markets in the East- < ern countries, if at all favourable, and : already an inspection had been made and a report furnished regarding the prospects, which seemed bright. The - only apparent requirement was" improved transport facilities. .. LOYAL SUPPLIERS. • In conclusion, on behalf of the 'com-■ pany,, Mr Heighway thanked the suppliers for their loyal support, during •the past season, and he trusted that such loyalty would be continued, and it meant only a matter of a short time when the suppliers would be re? • warded handsomely for their co-op-eration. The company had had many ■ drOTbdcks, but had overcome. them/ .At. the conclusion of the-,address, several; questions were asked and answered. On the motion of the chairman a hearty vote of .thanks was accorded*! Mr Heighway for his clean and interesting address. . A vote of confidence in the directors was also carried-'’with acclamation. SUPPLIERS* COMMITTEE. The following were elected a sup- : pliers’ committee for , the; ensuing season: Messrs T. P. Vuglar, W. F- K Johnstone, P. R. Hubbard, W. North, R. H. Ryall, L. E. Cassrels* and W. D, Keys, .