DAIRY FACTORY FOR FOXTON

Manawatu Herald, Volume L, Issue 3955, 13 June 1929, Page 3

DAIRY FACTORY FOR FOXTON

PUBLIC MEETING FAVOURS PROPOSAL. iCtANVASS TO BE MADE. A public meeting to discuss a proposal to establish a dairy factory in Foxton was held in the Town Hall supper-roam on Tuesday night. Despite the very incljement weather, there was an attendance of 20 present and apologies for absence were received from Messrs W. T. Jewell, Alex. Ross and A. K. Spedrs. The Mayor presided and regretted that the weather conditions had precluded many who were interested in the proposal from attending. For some years past, he said, itt had been thought that Foxton and the immediate district should be served by a dairy factory. In this connection Foxton was one of the few towns without a factory. In his opinion there was sufficient land which, under scientific treatment, could be converted into good grazing land for dairying purposes, apart from the better class land. The nearest factories were at Shannon, Levin and Oroua Downs. A local factory would save haulage which would benefit suppliers. W(hen the agitation for a local dairy was afloat two years ago it had created a good deal of interest among small farmers and those interested in the industry. Plans had been submitted at that time for a butter factory to deal 'with, 1500 cows and a guarantee of from 1500 to 2000 cows had been made. The proposal had fallen through owing to the principal party removing to the Argentine. In the Mayor’s opinion the time was now opportune to go on with the proposal. It was for the meeting to decide What steps should he taken and to set up a committee to canvass the district. The small herds of from 10 to 20 cows were just as important to cater for as the larger herds. Already he .had received a promise from one farmer of 400 cows and 100 cows from another if a factory is established. These promises were independent of smaller numbers. Another paint to be considered was whether butter nr cheese should be manufactured.

At the invitation ojf the chairman, Mi’. Gotz (N.Z.L. and M. Dairy Department) said his experience of the' district would justify him in saying that a cheese factory would b* a paying proposition, rather than butter. He referred to competition on the English market with butter from the Northern countries of Europe Which, under Danish instructors, were producing butter equal to Danish which could be put on the market with little cost compared with New Zealand. Cheese, in his opinion, would be more profitable than butter and would return more to the farmer. The district was well served ■with butter factories and competition was ikeen and (there was too much overlapping in haulage. There was not the same competition in cheese production.

Mr. F. Wjoods, a shareholder in the Shannon Co-operative Dairy Company, s'aid he was satisfied with bis connection wiith the Shannon Company which was well established and managed and returned a good “pay-out” to the farmers. This factory served the Moutoa district and any support for a Foxton factory would, in his opinion, have to come from the northern end. He referred to the overlapping of haulage owing to competition in the northern area which cost handicapped suppliers. Shannon was able to pay out from one penny to penny half-penny more than other factories in the district, due to economic haulage. Referring to cheese v. butter Mr. Woods said that was for the suppliers to decide. The by-product frojm a butter factory in the way of skim anilik for the feeding of calves, pigs and poultry was of importance, whereas whey was useless to the dairyman but, of course, had its value in other connections. He wished the movement every success Imt did not think that suppliers to the Shannon factory would change over. ,

In, reply to a question, the chairman said 3000 cows had been promised previously. Mr. D. (Christie said it would be necessary to" canvass the district and get ;a definite guarantee. He felt confident 'that once a start was made the financial aspect could bo met. The chairman said the share capital would need to he £4OOO. If shareholders paid up 2/- per share the balance could be paid off by deducting id per lb*, on supplies. Other than shareholders would be paid id less than that paid to shareholders.' There would be no difficulty in financing the proposal. He had assurance on that point. With the share capital guaranteed there would not be any difficulty re finance and the shareholders’ liability would Ibe automatically liquidated. In reply to a question, the chairman stated that the construction of a cheese factory would be £IOOO less than a butter factory to deal with 1500 cows. lit was pointed out that 1000 cows would need to be guaranteed for a butter factory and 800 for a cheese factory. Mr. Ootz stated that in his opinion there was room in this district foil- the establishment of two cheese factories. A cheese factory was to ibe established at Makerua immediately undo: a guarantee of 600 cows.

After a further general discussion a committee consisting of Messrs Penreau, Francis, J- !Reay, A. Evans and G. F. Smith with power to add, was appointed to canvass the district and report to

a further meeting at the earliest possible moment. The usual vote of thanks was accorded the ehaiitman and the committee met to finalise details of the canvass.