STILL STICKING TO BUTTER.

Pukekohe & Waiuku Times, Volume 3, Issue 198, 26 May 1914, Page 3

STILL STICKING TO BUTTER.

SUPPLIERS' DECISION AT WAIUKU.

PROPOSED NEW WAIUKU FACTORY.

PUKEKOHE FACTORY TO BE SHIFTED

As reported in Friday's "Times" there were over 200 dairymen present at the Anglican parish hall, Waiuku, on Wednesday evening last. Farmers came from all parts of the district—including Glenbrook, Waitangi, Aka Aka, Otaua and Kohe Kohe. During the past few months there had been a good deal of discussion throughout that part of the province upon the cheese question and much argument had been advanced upon the paying merits of cheese as against butter. The proposed erection of a r.ew and separate butter factory for Waiuku (there is only a creamery there at present) was also a topic of keen interest and a great deal of controversy has raged about the competing sites. The important part that the coming railway will play in the selection of the site naturally entered very largely into the discussions. These and other elerrents combined to produce the big meeting. Mr Wesley Sprtgg (chairman of directors) presided, and associated with him on the platform were Messrs A. M. Barriball and Mackenzie (directors) and Mr Pacey, general manager. Mr Spragg explained that this was the annual meeting of suppliers to the Dairy Association, called for the of hearing the annual report to the general msnager and for general tusiness.

If the dairymen here decided that it would be an advantage for Waiuku to go for cheese, cheese plants could be installed, but they would have to make alterations to each of the premises, erect curing rooms and make other additions which would involve an expenditure of £IO,OOO. But was that a proposition that would bring them better returns? If the suppliers wanted it the Association would spend the money provided the suppliers would guarantre to supply and subscribe for the share-money required. As to future prices, what were the prospects 7 It was right enough to say that it had been 1.3d more for the past five years, but what would happen in the future? He could noc tell tbem. But there were signs of the times as to cheese possibilities. He thought it possible that for the next couple of years cheese would show an advantage equal to that of the past five years. The Canadians had sent very much less cheese to the Old Country during the last few years than formerly, and it was possible that that quantity would diminish still further. New Zealand, on the other hand, exported 4111 tons of cheese in 1904, and 29,489 tons in 1913! And the exports from New Zealand promised to be larger next year than this year. Victoria and other countries had also joined as cheese competitors and Siberia had entered upon cheese production. New influences had to be considered on the one hand as against the tailing away in Canada on the other. He was inclined to think that the ultimate determining factor would be whether the next drought occurred in Australia or in Northern Europe, but Australia had bad gocd years and in its cycle it was likely that a drought would soon be again experienced there. According to figures in the "Grocer," which he believed had been accurately compiled, there were 250 millions of people who ate butter regularly as against 40 millions who were consumers of cheese. With butter and cheese it waß the same aa with potatoes and onions. When a good season for potatoes is enjoyed more people go in for potatoes and the reverse of what was expected then happens. It was a continual see-saw. Both cheese and butter were good, but it was a question whether it was wcrtb while breaking down the good-will they enjoyed in their butter business and which they had been building up for 20 years. Their brands were now known and respected in the markets of the world. Of course, having their good name, they should be able to do well for cheese. But it would be for the farmers to de:ide for themselves.

The Annual Speech. Mr Pacey said it was always a pleasure to come to these meetings, but it was an increasing pleasure when such large numbers turned out to take an interest in the affairs of their own association. A BIG INCREASE.

The general business of th« 3 Association had prospered during the year. The increase had been considerable and by the end of June they would have reached the point towards which they had been striving when their output would be 5000 tons. This end of the district had continued to do its share, and its increase this year was 500 tons. Round the Waiuku area a fair share of the increase had been registered, fhe quantity tonuses that had been paid out were as follows:—Waiuku 1 M6d (an increase), Otaua ljd (just the same as last year), Aka Aka lid (just a perceptible increase in sight), Waipipi Id, Pukeoware id (which creamery bad not only survived against the predictions of some but had shown an increase), Glenbrook 13-16 d, Turaogururu had gone up and this year tbe bonus there was 9-16 d per lb. That was a satisfactory statement and represented increased prosperity. He could not say what the increased price secured for the butter would be as the season did not close until the erd of June; if it was a farthing more they need not be disappointed, if it was less than that they need not be surpiised. A TROUBLESOME YEAR.

If tbey had been following the market conditions during the year, continued Mr Pacey, they would probably be surprised at the outcome being bo good. There was the big industrial crisis. That had only been got over by the industry on the part of the staff, the ingenuity of the factory managers, and by the co-operation with the Farmers' Union. These factors had enabled them to weather the storm and it was to ths credit of the farmers themselves that the position was as good as it is. (Applause). When they got their butter away some farmers may have settled duwn, Baying, "Thank Gcd that is done." But getting the butter away was only a preliminary. It was a question as to when the butter would get

to its market. There was a danger « *of a butter panic and the anxieties about the London market were very great. He could say that but for the incidents which followed the strike they would have received from Id to id more this season for their butter than they had cone. This meant that the Association had suffered to the extent of £15,000 as a result of the strike. But now, however, they were enjoying a new prosperity. EXTENDED MARKETS. During the year they had extended their markets in America, and if it had not been for Canada, which had been more remunerative than England, their position would not have been so good. They had also done more business with America. But if the markets went against the Americans they could always find plenty of holes through which to get out of their contracts and New Zealandeis preferred not to take any chances of that sort. There had been quite a lot of break-downs between New Zealand and America, but despite that the season had been quite satisfactory. BUTTER v. CHEESE. There had been a lot of stories told about the butter versui cheese question. Some were true and some were far from it. He had been notified that the question of cheesemaking was engaging the serious consideration of the farmers of Waiuku and Aka Aka. The query they were asking was: Ib cheese a better proposition for us than butter? It was the duty of the management now to put the proß and cons before the suppliers and they would then have the opportunity of judging whether cheese had any advantage over butter. Meanwhile, if the charge was to be made at Waiuku the present was an opportune time lor making it. The change, of cours?, would be made if that was the will of the suppliers of this district. But the directors and management were still of the opinion r that over a cycle of years butter would give as good a return an cheese. One season the beat cheese company in New Zealand paid rather more than :<d per lb than the beat company had paid for butter. That threepence sticks in the minds of many people who seem to think they would always get threepence more. That was not a fact. It must not be forgotten that butter J»H a by-

THE NEW BUTTER FACTORY.

In reply to a question Mr Pacey said the new butter factory in Waiuku would cost between £3500 and £4OOO. They had received indications from the district that quite a little bit of interest had been taken in the matter ot the site. The position in the past was that Pukekobe at its present Bite had served admirably. Some months ago there were complaints about the drainage there, bat be could assure them that the factory was now a* sweet as a nut. The development in the business in the change of conditions now made some alterations necessary. The cost of cartirg cream from Waiuku to Pukekohe would not again be dune as cheaply as in the past and the contract was now expiring. That necessitated a reconsideration of the whole position. The quantity of butter-fat to be carted was also becoming larger; it had almost doubled duting the last four years and that made the transport difficulties very formidable. Another difficulty was the transport of cream fiom Aka Aka to Pukekohe. The water in the Aka Aka bores had a temperature of 69 to 70 degrees and meant that when the cream started out it had a temperature for li- degrees. It arrived at Pukekohe late in the afternoon with a pronounced acid development. They could not make as good a butter after carting it to Pukekohe as would be the case if it were made here. FACTORY CHANGES.

They had given a lot of consideration as to what the change would be. The first thought was to put a big central factory at Paerata. Centralisation was much desired but in butter making there was a point beyond which centralisation was a disadvantage. The people of this district were to be congratulated upon getting the railway but even when that came the train service would be comparatively limited. He had reason to believe that the service would consist of one Irain in the morning and one in the evening, both ways. The suppliers possibly would not be able to get in early enough for the morning train and if the cream could not be despatched before the afternoon train they would not be any better oil" than at present so far as acid development in the creßm was concerned. The cartage Would be

I product of considerabb value—skim milk. Some people went so far as to say that threepence per lb more tor their butter-fat would not recompense them lor the loss of their skim milk. Others put its value down as equal to 2d, Eome said l&d and some even less. From all he could gather, however, he thought the value of the skim milk could be put down as equalling 2d extra in the lb for butter-fat. Taking a five year period and quoting the payments made during the years from 1908 to 1912 inclusive, Mr Pacey compared the payments made by the best butter and cheese factories in Taranaki, as follows: Butter: Dairy Association 12d, Stratford 11.55 d, Eltham 11.36U Cheese: Lowgarth 12.71, Ngaere 13.13, Dalefield 13.13, Riverdale 12.88 d. These showed a cash advantage of cheese over butter of 1.3d per lb, but the offset against thit was that suppliers to butter factories had their skim milk as against whey.

higher in tha future, all round. In the sevision scheme it bad practically ocen decided ti have two factories lr stead of one. This would p.oba'ly mean moving the Pukekohe factor; as well as creating a new one at Waiuku. So that they would have ore factory at Waiuku and another between Papatoetoe and Pokeno. Buckland and Tuakau had been mentioned sn prospective bites and they were suitable as against Paerata on account of the preferential railway charges. If they had the factory at Buckland—not that the position had been decided on—the produce from Pukekohe, Puni, Pukekohe East and Bombay could be dealt with more cheaply than at the pr.bent time. The cream from Onewhero and Pukekawa could come to Bucklatd at approximately the same roßt as to Tuakau. Good business suggested that they should have the factory were they could get the biggest quantity of cream. The Bavings effected would be considerable; £ISOO a year would be saved on the ruads between Waiuku and Pukekohe. It cost at present £BOO to £IOOO a year lor cartage between the Pukekohe factory and the rail way. If to decentralise would bring better results then they should decentralise. If removed to Buckland ths present Pukekohe factory within a few years would be up to the size of Pukekohe at present. ABOUT THE SITE.

"It we are to have the factory in Waiuku," Mr Pacey proceeded, "where \e it to be put?" This proposition pricked the ears of the meeting. There were five sites under offer, he said, and there were difficulties and uncertainties associated with each. That afternoon they had looked at two sites on the Otaua road—Smith's and Harvey's. It was rumoured that the railway station was likely to be at tte recreation reserve and there was a Jot to be said in favour of the Bite. (Applause).

A voice: What is the cost of Harvey's. Mr Pacey said the 20 acres would cost £IBOO. The outstanding needs in connection with the site chosen were proximity to the railway so as to get a siding, a supply of pure water for butter-washing, and a satisfactory means of* disposing of the sewerage. If the railway did not go near Harvey's and Smith's then these sites need not be considered.

A voice: Supposing Mr Maseey is put out of office will we ever gtt the railway?

Mr Pacey: I am not making an electioneering speech. Continuing, he said that reckoning at the very best it would be four years belore the railway would come, but the railway was nut an essential part of the factory scheme. The site offered by Mr Rossiter had quite a lot to commend it. It was near enough to the centre to serve the purpose of a creamery or factory and if the railway failed it was fairly near to the steamer. There was more rumour of the railway being near to this site than to any of the others. But if the railway station was to be put on the education reserve then they would not need Rossiter's site. At Rossiter's they bad a good water supply; Mr Mason was of the opinion that they would get a phenomenal supply there. If there was a good water it would be a further thing in favour of that site. The drainage wes another thing. It had been reported that if a reservoir were built and pipes laid on the stuff could be discharged on the receding tide give no offence to any one. If the siding advantages were better then this site was worthy of careful consideration.

A voice: What is the price? Mr Pacey said that frankly he thought the price asked was enough, but they would make the best bargain possible. For the 17J acres £3450 was asked; after allowing for the buildings tbis worked out at £l5O sn acre for the land. While they would do their best they had not to consider which Bite cost the least but which site would enable the factory to work most economically upon. At fJosking's, where the first sod was turned, there was another fine site; it was high land, standing up well. The price was £75 an acre. The trouble was tbat the railway promised to go so near the edge that there wculd not be more than enough room for the factory. He hud confened with the Public Works Department and found that the grade of the line was almost at its maximum at Hosking'e and the railway regulations debarred a siding being installed at such a place. He did not know if this could be overcome, but it was engaging serious attention. As far as the water there was concerned it was almost ideal for refrigerating, pasteurising, etc., being in abundant quantity. They could not use it however, for butter washing, and it would be necessary to enquire into that. The drainage was apparently a simple matter if it could be carried through Hamilton's or Bischoff's properties, and he believed that was capable of being negotiated. Campbell's site had 10 or 20 acres at £l5O an acre; they were thinking that was an ample price. If anyone had any suggestions to make the directors would be glad to give them every consideration as they did not want to make any mistake. No site had yet been selected. When they learned more about the railway difficulties and the water difficulties then they could g.t to work and decide before the next eeason was far advanced. Some people seemed to have an idea that certain directors had been working fur some sites as against others. He thought it his duty to say that that was contrary to fact, as not one of the directors had sought to give advice regarding any one of the sites. (Applause). SOME QUESTIONS.

Mr Greenway (Aka Aka): Is the factory to be limited? Mr Pacey: It will include Aka Aka, Waipipi, Waitargi and Glenbrook.

Question: If we go in for cheese what will become of the home separators?

Mr Pacey: We should expect to deal wilh them ?s we will have to make some butter.

Mr A. Harcombe (Aka Aka): Would it not be necessary to make two trips to the cheese factory, once to take the milk and another to bring away the whey? Mr Pacey said that was not the usual practice.

Mr D. Hayes said he believed in the present system and he thought they would be far better oil sticking to butter. He did not believe in chopping nnd changing. When all the others were rushing into,;,cheese he thought it was the

best time for ti.is district to keep

gur. (Hear, tear. 1 Mr Spragg said that for two or three seasons cheese might be ! better than butler, but as sure as the sun rises the cycle would occur and the difference between the two would balance itself. Was it worth while to dislocate their business and upset their markets for the sake of a few years? The man who attempted to get tie best of both sides geuerally got the worst. DECISION FOR BUTTEK. Mr C. T. Barriball moved: That the company continue to make butter and do not, so far as this district is concerned, go in for cheese. Mr Wallace seconccd. Mr J. D. Chalmers pointed out that pork was also goirg up in price and they should also start a bacon factory. (Hear hear). The motion, to continue buttermaking, was then put and carried overwhelmingly. Mr Spragg: There are at least 200 pei.ple here and the motion is carried with only two dissentients. The chairman asked if there were any suggestions which mighi help the directors with regard to the selection of the factory site. Waiuku had been promised a factory when it could carry it and now the district had improved enough for it. Mr A. Hull asked what was the grade of the sidiLg at Hoaking'tt as compared with Kossiter's? Mr Pacey said at Hosking's the grade was 1 in 50; at Rossiter's it was practically level. SITE LEFT TO DIRECTORS. Mr C. T. Barriball moved that the question of the site be left to the directors. He did not wish to baulk diecupsion but unless they had a motion they might be here all night. This was seconded. Mr C. J. West said it did not matter if they were there all night. The subject was agitating the district wherever people were brought together. What seemed to anooy people most was that Messrs Motion and Barriball were in favour of one particular section. What Waiuku was against was that they were going to have their creamery shifted a thiid time. The chairman said they must wait for the railway to be decided before the site could be selected. Mr C. Hcdgkinson said the Farmers' Union had taken thia matter up. They wanted the best site that coull be got—the best and most economical. They must have their own railway siding to Eave the carting to and from the factory, and not because it was Rossiter's site or any one else's. The Waiuku creek now was "enough to knock you down," and if they put the factory drainage into those mud flats the odour that would arise would be very bad. They had to face the very serious consideration of putting drainage into the Waiuku creek. Mr John Bent opposed the motion and moved, as an amendment, That the directors again confer with the suppliers after getting further information. The final decision would lay with the directors. Mr J. D. Chalmers suggested that they should wire to Mr Massey asking him for definite information about the station. The people at Paerata could not find out where the station at Waiuku was to be. After some further discussion, and two counts of hands the amendment (for the directors to again consult the suppliers) was lost by 47 to 44, and the motion (leaving the selection of the site to the directors) was carried. A hearty vote of thanks was accorded to Mr Pacey for his address.