TUAKAU.

Pukekohe & Waiuku Times, Volume 4, Issue 33, 30 April 1915, Page 4

TUAKAU.

Cheese v. Butter. Lively Meeting. There were 40 shareholders of the New Zealand Dairy Association present at a meeting held in the Tuakau Hall on Tuesday evening last to listen to an address by Mr H. E. Pacey, managing director of the Association, in regard to the cheeee v. butter controversy, and to decide whether a dual plant should be installed at the Tuakau creamery. Mr H. McKenzie, a director of the Association, was elected chairman.

Mr, Pacey, in his opening remarks, said that suppliers had beeß notified by circular that he would visit the district and discuss with them the advisability of installing a cheese plant. The Association had started off the season with 600 tons more business than last year, but owing., to the drought it fell and it was conceivable that there would be a continuous decrease. Mr McKnight, of the Wairoa Butter Factory, had informed him that the present output ftom that factory was only half of that of last Eeason, and the payments for a peiicd extending over three months only averaged 25 per cent, rl the amount paid out for the corresponding months last season. Marketing conditions were changeable, the prices fluctuating, but the hnsl average price that would b2 pai'J for butter would be better than any form=r experience in the butter business. There was every possibility of a penny per lb> more being paid than last season. The autumn marketing conditions were difficult to jud«>e owing to the fluctuating sensational prices. lhe directors had au.horised increases of a penny, as from the 21st inst , ar.d an additional penny from May Ist. ihis would mean that in May the Association would be paying 3d per lb more than the price paid during the corresponding month of last year. He recognised that bad the increased price been paid during December it would have been more benetical to the suppliers. That meeting was being held earlier in the year than usual, cn account of the improvement in the cheese business. It was a boom season lor cheese. winetylour shillings was being asked for New Zealand cheese, and it was probable that cheese companies would do better than Is 6d per lb. The Association had arranged to instal cheese plants in suitable distrcts, where the suppliers so desired, but the decision at meet*, ings called had mostly been in favour of butter. The solid financial position of the company allowed for the installation of cheese plants, under conditions which could not be approached by other dairying companies'. It would be nceessary to settle which was the most valuable, skimmel milk or whey. I'here was diversity of opinion ia the matter. Some people considered skimmed milk was the most valuable and otberß whey. Neither statement could be taken liberally. When the relative value was found they would have lo fix a standard for comparison. There were a hundred per cent more solids in skimmed milk than in whey. He claimed that skimmed milk was twice a3 valuable as whey. He assumed that the value of skimmed milk per lb would be 2d and cheese whey half that amount. Accordingly cheese would have to return one penny per lb more. The prices paid out by companies for cheeie and butter in New Zealand, when compared, showed a slight advantage for cheese. Cheese had become a staple product in the trenches, acd while the war continued the margin would .remain the same. His opinion was that after the war, if cheese was compared with butter it would be at a disadvantage. After a cycle of years there would be little to choose between either. The tide had turned in connection with the production of cheese, and the possibility was that it would be overdone. Probably New Zealand next year would show the largest ratio of increase. He considered it advisable to keep in mind the fact that before the war broke out, ' 20 cheese factories were started in Siberia and the cheese was on the English market. It was owing to the fact that eome companies in New Zealacd had transferred to cheese that prices for butter had risen. If they were int:reeted in cheese and would like a plant instilled the company would do it, with the expectation that they would take acditioral shares. The coat would be covered by allotting shares, the deposit to be 5s and the usual two 2s 6d calls. They would require an assured supply and the profits would be- divided on a butter-fat basis. Assumig that the supply would come from 600 or 700 cows, which would give an average of 200lbs of butter-fat each annually, it would be necessary to instal a curd plant of three vats, the cost of which would be £llsO. I£ a curing room was provided it would cust an additional sum of £SOO. The dual plant which the company wua prepared to instal would allow for either the manufacture of butter or cheese. Mr Montgomerie: If a supplier wanted to give up milking «ould the company be prepared to buy the shares on their face value? He had purchased 11 shares at 3T)a each and had not received any profit bonus, and neither had the supplier that he had purchased j them from. J Mr I'acey explained that previouH to the war the company boughH Lack shares. Taranaki companieH were puichaßing them back at r>H

per cent and 75 per cent, but no company could legally boy shares, ad lib. In regard to the nonpayment of bonuses he stated that it was impossible for the companv to pay a bonus to a shareholder for butter fat supplied by a previous supplier.

A voice: the Waikato Co-opera-tive Dairy Company will buy back shares in nix months ai the price originally paid for them and 8 per cent, addition.

Another member ot the audience asked: "In the event of a cheese plant being installed would there be an obligation on the aupplieis to guarantee a number of cows for a definite period? Mr Pacey: The company would not expend capital on a cheese plant unless they received a guarantee of the milking herds for a period of three years. Mr D. Fulton: Would the returns from cheese factories as a whole be bulked and paid out to shareholders as one business.

Mr Pacey: Yes, but if delivery charges were incurred by lactones, the factories concerned would be debited with them. A voice: Would the labour required in the manufacture of cheese be greattr than in the manufacture of butter? Mr Pacey: Yes. A voice: That would reduce the Id per lb profit. Mr Pacey: No. Mr D. Fulton thought it an injustice to the shareholders for a shareholer who had been supplying the factory and discontinued, in order to seed hi a milk to Auckland, to get the fuH benefits, the Fame as the other shareholders, when he again supplied the factory. Mr J. Fulton proposed that the meeing should decide not to consider the matter any further, and not to entertain the manufacture of cheese so far as the Dairy Association was concered. Mr Henderson seconded, but withdrew when the chairman explained to him that the motion was of a two-fold nature. Mr Montgomerie then seconded. Captain Kyder offered to support the first portion of the proposal, but not the latter part. Mr Henderson moved as an amendment, that the meeting should simply decide not to go in for cheese.

When put to the meeting the amendment was carried

Mr D. Fulton objected to the manner in which the chairman made suggestions to Mr Henderson as to the motion after Mr Henderson had seconded it. Mr Fulton went on. to say thut at the annual meeting held at Tuskau last year it was decided and understood that the directors would adjust the boundaries at Tuakau. The chairman stated that the directors had waited for the Tuakau peoplo to notify them ro the matter but they had failed to do so. Mr Pacoy romarked that at a meeting held in the hall during October last Mr D. Fulton had said that a deputation would go to Auckland from Tuakau to put forward a petition in regard to the matter, but nothing had been done. Mr D. Fulton claimed that it was fully expected by those who had attended the meeting in October that the directors would attend to the matter on their return to Auckland, but thev had not done so. The suppliers accordingly let the matter drop. The chairman said the opinion he held in regard to the Tuakau and Whangarata factories was that if either closed down the supply should go to the nearest factory. (Applause.) Mr D. Fulton asked if the Association paid for cream carting from Whangarata.

Mr Pacey replied in the negative. Mr Fulton said that the carting was paid on the cream from the Whangarata station, when taken from the Pukekohe railway station to the Pukekohe butter factory. Mr Pacey : The business has been building up for a period of 30 years and it is run according to policy. Mr Craig said it would be more profitable for the shareholders to forward their milk to the Pukekohe factory by train, seeing that Whangarata settlers were receiving a better price than them. He moved that the creamery be closed. A vo'ice : If something is not done the Tuakau factory will suffer extinction.

It was decided on the motion of Mr McFarland's that it should be a recommendation from the meeting that the directors should grapple with the matter of the difference in prices in districts at their next meeting and endeavour to find some equitable means of settling it. Mr McFarland took it for granted that an answer to the proposal would be received practically at once. Mr Pacey : Yes. In reply to Mr D. Fulton, Mr Pacey said that it was correct that the Tuakau creamery manager, owing to the drought, had had his salary reduced by 2s 6d. It was at the request of creamery managers that the Association were paying them the creamery managers) according to the amount of milk thoy handled and it was through the reduced supply to the creamery during the drought that the manager's salary was reduced. Mr J. Fulton : Is it a fact, Mr Pacoy, that you have received an increase of £2OO iu your wages.