DRIED MILK.

Matamata Record, Volume II, Issue 89, 4 July 1918, Page 4

DRIED MILK.

Meeting at Matarciata. Dried milk is no new com-1 modity in Matamafa, a number of settlers having bean supplying the Glaxo factory for nearly two seasons. Although during that period what were considered good prices were received, the recent statements as to future possiblo prices have created perhaps greater interest here than even through the rest of the Waikato. Consequently, the largest meeting of dairymen yet held in Matamata was that which assembled on Friday evening last. The meeting was called by Mr W. Goodfellow, and when he rose to speak over three hundred dairymen were seated, most of whom were from Matamata and surrounding districts. Mr Goodfellow was heartily applauded when he commenced his address. He stated that as he might not have an opportunity of speaking before a Matamata audience again this season ho would take the opportunity of running over the history of the company and its past season's operations, and then go on to the more important question—future operations. His remarks were on the lines of the speeches delivered by him elsewhere, but incidentally he made it clear as to the position of Matamata in connection with the proposed dried milk factories. Mr Goodfellow stated that the process did not need the services of great experts; he considered the present staff would be able to take their places in new factories. He stressed the point that the dairying industry was yet but in a transition stage, and it was a duty to him to keep his company up-to-date. The dried milk industry promised something better than yet attained. There was no patent in the manufacture of milk powder; it could be made by anyone who had the machinery. The machinery had lately been greatly improved, and the roller system was now considered out of date in America. The process, of which the New Zealand rights had been acquired, would be capable of drying whole milk or skim milk. The latter, however, was the more profitable product; he was confident he was quite safe in stating that 3s 6d per pound could be paid, and possibly even up to 3s Bd. Out of the 3s6d per lb it was proposed to deduct 6d per lb for the first two years to pay off the cost of the factory. A factory, he estimated, would cost from £20,000 to £25,000. Thus with a guarantee of 3000 cows a factory would be free of debt in two years. (Applause). The next question after the erection of a factory was a market, and in this connection he was pleased to be able to quote a cable and letter received from Messrs R. W. Davidson & Co., of Glasgow, in which they stated that they were repeatedly asked for a dried milk powder, and could sell every pound likely to be produced. He was confident that there would be no slump directly after" the war, but rather he looked forward to a big commercial boom with corresponding purchasing power on the part of the people for many years. Mr Goodfellow, before concluding, said he would like to touch on the operations of the present dried milk factory at Matamata. He congratulated Messrs J. Nathan & Co. on the most excellent business arrangements they had made —for themselves —and paid tribute to their firm's cleverness. However, he still failed to see that the suppliers had gained anything. They were getting a little better than cheese prices (he estimated the larger factories to pay 2s per lb butter-fat) and the factory was not being paid for. There was nothing co-operative about the deal, the suppliers simply selling their milk at a fixed price to Nathans, who get practically the whole of the profit. The idea was fairly general also that the payment of 10 per cent, on the cost by Messrs Nathan & Co. for ten years would mean that the factory would be paid for in that period. Nothing of the kind; interest on the borrowed money had to be paid, possibly at 5% percent., and he would say that depreciation, which would have to come out of the iVi per cent, balance, would just about swailow it. So that in ten years the factory would still be unpaid for, and the suppliers were not getting anything near the payments while supplying what they would if working on a co-opera-tive basis. It was these operations in the district which had compelled the South Auckland companies to investigate the possibilities of the dried milk industry, and introduce a scheme to be conducted on co-operative line*. On resuming his seat Mr Goodfellow was greeted with deafening applause. Mr J. Clark (director Waikato Co-operative Dairy Co., Ltd.), said Mr Goodfellow had practically told the farmers flatly that

they would get all there was to be got from their supply. Questions invited by the chairman,Mr J. Pohlen, wore answered by Mr Goodfellow. Mr C. A. Stopfoid (Sunny Park) said his directors would be pleas- ( ed to meet the Waikato company's directors to discuss the whole matter of the industry; and it was practically certain that a supply from 900 cows could be assured from this source. Mr Goodfellow said his directors would be pleased to accept the invitation. In answer to questions Mr Goodfellow said that it would be necessary to deliver milk twice daily in the flush- of the season. In America a delivery once a dty was sufficient, but conditions in New Zealand were against a similar proceedure here. Owing to the probability of the factories still being largo suppliers of cream to the butter factories, ho did not think it would be possible to transfer shaies from the dairy company to the dried milk concern. THE SITE QUESTION. The company did not propose to decide upon the question of site until Mr Shirley returned from America. Drainage promised to he an important factor, and the manager was investigating the latest methods. He, the speaker, would bo perfectly frank and say that it had not been settled as to whether the factory was to be erected at Matamata or at Waharoa. He suggested that committees be set up to ascertain what supply could be obtained at Matamata, Waharoa, and Hinuera. With that information the company could not decide on a site, and proceed with the erection of a factory directly upon the return of Mr Shirley. They hoped to use the railways to run milk from receiving stations to a central factory. If great supplies were offering it might be possible, when times were normal, to have a special milk train running from say Putarurn. This scheme was working in Australia; but, on the other hand, the suppliers might have to rely on motor transit. The allotment of shares would be on the basis of £5 per cow, with possibly a 10s application fee, the balance of the share money to be deducted at the rate of 6d per pound for two years, when they would be fully paid up. He considered a fair radius of supply would! be six: miles, and suggested that people in the outer districts should sign the Matamata lists if they were prepared to supply a factory there, and also sign the lists for a factory in their own district, otherwise it might the supply would not warrant a factory in either place. The signing of a list would not be binding, but would be but a preliminary guarantee, which would enable the directors to ascertain where the largest supply would be available. If there was more milk offering than could be treated in one factory possibly further factories would be erected later. He would assure his audience, however that wherever the factory went it would be in a position so that it could cater for the whole of the milk frem Matamata. (Applause). He could not say definitely when a factory would be completed—possibly in January or February, but probably later. To Mr O'Connor : If a settler signed the proper guarantee he would have to fulfill his contract. The factory would not be built for speculators, or to boost up the value of land, but to manufacture the product successfully. If a farmer sold his property, and could not persuade his successor to take over his responsibilities he would be penalised at so much per cow, (Applause).

Mr I. McNair said he was pleased to listen to the address on the dried milk question and co-operation, but he would have liked to have heard something said about amalgamation. Mr Goodfellow said his company was quite prepared to discuss the question of amalgamation on co-operative lines. The directors of the Dairy Association knew quite well what was wanted and he was not prepared to state anything further than that. Amalgamation proposals had been spoken of by South Auckland companies. The following committee was appointed to canvas the district to ascertain the number of cows available: Messrs P. Quinlan (Taihoa), S. Banks (Peria), J. Ryan (Waharoa), Herbert (Okauia), C. C. Neal (Te Poi), F. Gibson (Turanga-o-moana) and J. Pohlen (Matamata). At the conclusion of the meeting on the motion of Mr H. Rollett a hearty vote of thanks was passed to Messrs Goodfellow and Clark for their most interesting and lucid addresses. Mr Goodfellow moved a vote of thanks to the chairman (Mr J. Pohlen) for so ably conducting the meeting.