ROTORUA DAIRY COMPANY.

Putaruru Press, Volume III, Issue 94, 13 August 1925, Page 4

ROTORUA DAIRY COMPANY.

MEETING IN PUTARURU. Payout Is 7}d Pound. “ I am not liere to run down any other dairy company, but it is no use ' hiding your light under a bushel, and when it comes to facts we have nothing to hide, and are ready to stand comparison with them all.” So stated Mr. Dowling, chairman of the Rotorua Dairy Co., in the course of an address in the Putaruru Hall on Thursday last. Unfortunately, the meeting- clashed with an important local stock sale, and consequently only about a dozen farmers were present. In his opening remarks, Mr. Dowling, who was supported by Mr. Parsons a fellow director, stated that the meeting held that day was only a preliminary one, and they had come to Putaruru by request to place the position of one of the soundest and most progressive factories in New Zealand before local farmers. “ Pay-out ” was their slogan, and! the whole efforts! of the company were directed towards this end. It was necessary to read the reports of other companies to see whether the Rotorua Co. was the best for local farmers. He noticed one company which paid Is 6i, with Is 6ad for superfine. Against this the Rotorua Co. would this year have a clean-up of Is 7d for first grade, Is 7ad for superfine, and Is 73d for superfine direct delivery. In addition ) the company paid all cartage, and ( there were no deduction's whatever from the figures quoted. Cartage had to come out of butter-fat in any case, and they had decided that it should be paid for out of the general funds of the company, so that the men alongside the factory should bear a proportion of the cost of bringing the cream from farmers who were in the backblocks.

THE FACTORY: The factory, which, was erected i ferro-eoncrete, would be as good in 2 or 30 years time as it was to-day. The machinery was up-to-date and more or less new. They had designed for the future and sites for new machinery were all there. The factory had a capacity of 1000 tons, and. the only thing required was extia vats and churns. CARTAGE CHARGES. (Continuing, the speaker stated that a certain route which cost them £440 last year was tendered for at £9OO this year. By putting on their own lorries, they could do it for £4OO, which with back loading would be reduced to £2OO. This was for a six day week, and it worked out at about id per lb butter-fat for 30 miles. DEODERISING PLANT. To. secure the best prices in the open market, butter had to be tip-top stuff, and with the object of increasing the quantity of the best grade article, it had been decided to instal a deoderising plant. This would eliminate flavours and volatile smells, and it was estimated would raise the grading by five points. By this treatment first grade cream would become superfine, and second g-rade become first grade and so on though any farmer who sent out and out second grade stuff' could expect nothing- else. The water supply at Ngongotaha was exceptionally good, and with this in addition they expected to have great success in quality of output next season. Referring- to g-rading- points the speaker stated that the Board of Control had already fixed the points as follows:—Superfine, 93 points and: over; first grade, 90 to 93; second grade, \under 90. Thus with an increase of anything up to five points through use of the deorderising plant, and first-class water, they would he in an exceptional position. OVERHEAD CHARGES. In regard to overhead charges, they carried no “ duds,” having but a manager and secretary. Fuel costs were only 15s a ton, and they had no heavy overdraft. In the last balance-sheet £1 shares were worth £2 LOs. in assets. PUTARURU DISTRICT. Touching on the Puta-uru s'upply, Mr. Dowling pointed out that, cream had been received from the district since 1910. They had . never been beaten in payout, but some farmers hacl left them because a previous hoard could not see their way to finance cows. The present board was, however, ready to assist farmers in any legitimate way. They were out to cater for the district, and whether there was one man or 20 on a route, the company would meet them more than half-way. SHARE CAPITAL. The basis of share capital was 1301 b butter-fat to each £1 share, and l contributions to shares was fixed at only id per lb. Interest at the rate of six per cent was paid on all capital how- ; ever small, but was only paid in cash

when shares were fully paid. When not fully paid interest was credited to each farmer’s share account. , RAILWAY CARRIAGE. The company had made arrangements with the railway department for the cream waggon to be in a certain position every day. Any farmer arriving- late and wi< !i no time to make out a consignin' nt note vbiißt put his cream abou and then inform the office. The department were cut — ~ to get business. SEEDS AND MANURES. In referring to the assistance extended to farmers, the speaker stated the company did all in its power to assist farmers to topdress on easy terms. So long as a farmer was a ■reputable man he, could easily obtain 5, 10, or 20 tons of manure through the company. Orders given against bonus account were treated as cash with order, and would obtain the usual discount as such. Farmers could save their share capital by getting supplies through the company as no profit' was made on sales. The company was in an exceptionally sound financial position and had still 200 tons of butter on hand. ECONOMICAL MANAGEMENT. Mr. Parsons next briefly addressed the meeting-, stressing the economy with which the Ngongotalia factory ■» was run. The temperature at which cream was manufactured into butter sometimes entailed a loss of one per cent of, fat in the butter-milk, with JL this saved it was equivalent to £4OO ™ on the year’s working. A loss of one per cent over the whole output of New Zealand meant £1,200,000 in cash. Further, the percentage of ' moisture, etc., in the butter meant a ’ big difference to the overrun and they ; had a special testing room to ensure that the law was taken full advantage of in this respect. It was by watching these small percentages that they 5 were able to make big payouts. They 1 were in a proud position, being one of, if not the most financial company, in New Zealand, and thus could hold i their butter, if necessary, and yet 3 make liberal advances to suppliers.

QUESTIONS. ; In reply to Mr. Dimond, the chairman stated that the cost of the (leoderising- plant would be £I2OO. were in a unique position, being able to pay for this out of capital and nothing would be deducted from butter-fat payments on this account. A new supplier would be sent a notice at the end of the season, showing the amount of butter-fat he had sent and inviting him to take up shares. There was no compulsion, and anyone taking up shares paid 2s on application and Sd per lb the following year. The application money could be paid out of bonus or as arranged. • PUKETURUA SUPPLY.^ In reply to Mr. Vosper it was stated that the supply which went to Puketurua cheese factory now went to Rotorua. The solicitors were now drawing up the final documents and the Puketurua suppliers would shortly be on their feet through the company’s efforts. FACTORY AT PUTARURU. | Mr. Dimond: What would-be the policy ,of the Rotorua Co. in regard to building- When Ngongotalia factory has reached its maximum output. Mr. Dowling: We will undoubtedly* build a factory here. We have the finances behind us, and provided the supply is here we will not hesitate in ... regard to putting up a factory. For the time being- it is a better proposition to manufacture at Ng-ongotaha. It would not be necessary for local suppliers to take up outside shares, or Putaruru shares were in the Ro- v torua Co., and, of course, that finance d would be behind the . new factory, which would be a branch benefiting by the experience of their manager and staff. A voice: If the Rotorua Co, put a branch here, it will not be long he- _ fore it is the headquarters. (Laught- «jk er). * The chairman: We shall be only too pleased _to shift. (More laughter). In reply to further questions, .the chairman stated that speaking- from memory the amount of cream supplied to Ngongotalia from Putaruru , was equal to 119,0001 b of butter-fa?. THANKS. On the motion of Mr. Dimond, a hearty vote of thanks was accorded , Messrs. Dowling and Parsons for their interesting address and information supplied, and a request for a,;further meeting was made.