DAIRYING MATTERS.

Hauraki Plains Gazette, Volume XXXVI, Issue 4845, 26 June 1925, Page 1

DAIRYING MATTERS.

DISTRICT SUPPLIERS’ MEETINGS. OPERATIONS OF N.Z. DAIRY CO. Representatives of the N.Z. Cooperative Dairy Co., Ltd., have commenced to hold the annual disti let meetings of suppliers in this part, of the territory. Mr C. J. Parlane, the recently appointed assistant genet al manager, and Mr G. Buchanan, local director, are giving a report of the past year’s- operations of the company and information on policy matters and the Dairy Produce Control Board. A meeting was held at Nctherton on Tuseday evening, and at Paeroa on .Wednesday morning, and from today unit! Tuesday next meetings will be held on the Plains. PAEROA MEETING. Mr P. R. Hubbard presided over a fair attendance of suppliers at . the Paeroa meeting, held in the Soldiers Club. Dealing With the season’s make, Mr Parlanc said that in all branches an increase had been ..recorded, Butler made totalled 32,523 tons, an increase of 1859 tons ; cheese, 4413 tons, am increaise of 396 tons; dried milk, 3981 tons, and casern 657 tons, an. increase of 19 tons. During the coming season the output of butter from New "Zealand was expected to be. between 60 and 70 thousand tons, while the indications were that other countries would also show an increase. It was necessiuy, therefore, to pay more attention than ever to quality. Wheu. the Controlf Board took control of the exported butter it was expected that a national brand would be adopted for all butter grading over 92 points, and it was necessary that the company should get as. much as possible of its output into that grade. The company had at. the beginning of hte season raised the grade for superfine to 92 points, and as a consequence, the percentage of superfine in the output had decreased slightly. Mr Parlane said that he could not give any indication as to what the Anal* payout would be, as there were approximately 7000 tons yet unsold. The market at present was good, and it largely depended on how the butter being held was released how the. market continued. Several small companies might push their butter on to the market now that the price was good and so cause a depression. It could be seen that some form of control would be desirable. Should much butter be released in the near .f uture, so as to decrease the price, it. was the intention of the company to withhold a maximum supply, so it might be necessary to carry considerable stocks forward. This would be taken into stock at valuation when making up the balance-sheet, but it was expected that the final . clean-up on the balance-sheet figures would be effected by the end of August. z Mr Parlane- reported at length on the operations of Mr J. B. Wright, the company’s London manager,- particularly in i egard to his work of introducing New Zealand -butter direct to the consumers. )

The speaker detailed the company’s operations in opening' up new. markets in the Far East. There were indications' that in time this market would beocine a very good one for the conir pany’s surplus output. Mr Parlane gave, figuros relating to the payout of several competitors, and contended that the payout of the N.Z. Dairy Company compared . more than favourably. The small companies believed in a f.o.b. sales policy, and often made good sales to speculators, who used the produce thus obtained to bear the market. By. selling f.o.b. the seller was able to get the full payment in cash and make a high monthly payment. The Dairy Conipany did not approve of f.o.b. selling, and held consistently to the open consignment policy and usually drew from 80 to 90 per cent, of a conservative value of the output. The monthly -paymyent wais known as an. advance payment., and suppliers were due to draw the balance later, but in the case of companies selling f.o.b. the monthly payout was all that could be expected.

The financial position of the company was dealt with the speaker mentioning that a big overdraft had been incurred during the 1921-22 season in making provision to deal with the abnormal increase of over 6000 tons of butter, but the position had now. righted. The improved financial state of the company had permitted a new arrangement in regard to share capital. In the past, shares 'had keen automatically allotted when a supplier’s isupply increased, but in future fully paid up shares woud be granted upon suppliers making written application. The directors anticipated that suppliers would continue to take up shares, as it would pay them to do so.

Another policy, matter that had received the attention of the directors was the cartage services, continued Mr Parlane. As had been expected, the system brought into being during last season had caused a heavy call upon the general fund of the company. In future the 12-mile radius would be abolished, and if a service cost %d per lb, this would be paid by the supplier; but if it cost %d the supplier would only pay -!4d and the company y 8 d. Likewise,, if it cost Vad per lb the supplier would pay %d and the company %d. In cases where the service cost more the company would contribute up to %d per lb.

Dealing with the coalmine, Mr Par-

Jane reported that a very satisfactory year had been experienced. The total, output of 154,000 tons was expected tills year. The average daily output had been 650 tons, and the highest daily output 762 tons. The company employed 275 hands in and about the mine, and These were mostly housed in dwellings erected by the company. A lot of capital was thus invested, but it was interest drawing.

New plant, had been installed in the box factory, and a new type of butter box was being made. Supplies of white pine were becoming scarcer, and the company, being one of the largest users, had looked around for a satisfactory substitute. Two officers had been despatched to Australia and had brought back a very favourable report, concerning a method of making boxes with %in timber strengthened by cleats at the corners and bound with wire, making a container which proved 86 per cent, stronger than the old box of %-inch timber for the sides and %-inch ends. T.he saving amounted to. over a million feet of timber a, year, or about £lO,OOO In addition, the company had installed a drying machine which permitted of absolutely green timber being received at the factory and made into satisfactory butter’boxes' in fifty minutes. - ■ ' '

Mr Parlane then detailed the method of electing the members of the Control Board, and explained the disadvantages of the ward system. • After mature consideration the derictors of the company had passed a resolution advocating the college or council system. By this method only the outstanding men in the industry would be appointed to the board. Suppliers elected the directors of their companies ; they hi; turn elected a dairy council, which in turn appointed the control board. Very few questions of general inter- ■ cst were asked. Mr-Buchanan moved that this meeting support absolute control of daily produce. exported from New Zealand, and also the council system of electing the Control Board.' Mr P. Harold seconded, and the motion was carried unanimously. COMMITTEES. . Suppliers’ committees were elected as follows :— Paeroa factory, Messrs T. P. Vuglar, F. Lewis, and W. F. Johnstone ; Komata, Messrs P. R. Hubbard, J. Howie, and N. Robson ; Tirohia, Messrs H. F. North', H. P. Gillard, and B. E. Veale. - /k vote of thanks to Messrs Parlane and Buchanan, the old committees, and tiie chair, treminated the meeting. . . NETHERTON MEETING. In the Netherton Hall on Tuesday evening Mr J. A. Reid presided over about 40 suppliers. In reply to questions Mr Parlane •said that when the Control Board: assumed control it would take over the marketing of butter in cartons in Eng'land. However, though’the board intended adopting- a national brand for New Zealand, existing brands would be permitted for a term, in addition, perhaps, to the national one. Replying to a quesiton concerning marketing in the Far E'ast, Mr Parlane said that the Control Board would maintain and develop that market, but the, cost would be borne by the whole, of the producers , of New Zealand. ■ All- dairymen would thus get the benefit of the propaganda done in- the past by the-N.Z. Dairy , Company,, just as they had done in connection with other new departures of. that, company. For instance, the company had effected a reduction in the price of timber for butter boxes, and other companies had quoted this to the millers and so compelled a reduction in the price to them. No difficulty Was anticipated in connection with the agitation in England for the abolition of preservative in butter. The company was conducting extensive experiments to determine the advantage of preservative, and these tests were being accepted

by the Government as official. The final result was not yot known, as the tents were not completed.

Regarding the old Netherton factory, Mr Buchanan siad that the directors had considered .the matter, but could out agree to the cheese factory being turned into a butter factory because of the high cost and high, manufacturing costs of the small supply. The Paeroa Factory was not working up to its capacity, and the Ngatea supply could not be drawn upon for a sufficient amount without going’ almost to Ngatea. The directors were considering asking the suppliers to reopen the factory if certain decisions were arrived at in the near future in regard .to the marketing of cheese from milk separated down to a standard basis.

After a great, deal of discussion bn matters concerning cream cartage Mr Potter moved that it be a recommendation that a cream stand be erected at the school corner.; —Carried Mr L. Jamieson pointed out that annual licenses for vehicles terminated at the end of March each year, and suggested that cream cartage contracts terminate at the same date so that contractors would not have to pay the heavy annual license fee. for the short period in the second year until the termination of the contract.

A recommendation to that elfcct was carried.

. The contract entered into by the N.Z. Dairy Co. with 'Messi's Nathan and Co-., and which had been accepted by the Control Board, was mentioned by Mr J. A. Reid. , Mr Buchanan stated that Nathan’s had been given the contract to. handle a quarter of the output. The position was that the price realised foi the other three-quarters of the output determined the price for .the other quarter. So much had been made of the matter by opponents of control that the directors of the company had passed a resolution handing over the advantage to the board. There was no benefit to the company in the contract, so. the. acceptance by the board would not be detrimental to suppliers. A-motion supporting absolute control of butter, and cheese exported from* New Zealand and supporting the college system of electing the Control Board was moved by Mr J’. A.

Reid, seconded by Mr H. Hill, and carried unanimously. COMMITTEES. After a vote of thanks to'the outgoing committee the following were appointed to. hold.ollicc for the ensuing year ' Nthcrton, Messrs R. H. Heappey, E. A. Chester, W. Morrison, J. Harm's, and J. A. Reid; Awatii, Messrs H. Hill, A. Adam, J. H. Bradshaw, P. Harold, and A. Bourne ; Pukahu Rbad, Messrs Townsend, W. Reid, and S. J. Hayward. A vote of thanks to the speakers and the chair terminated the meeting.