CO-OPERATIVE DAIRYING.

Pukekohe & Waiuku Times, Volume 4, Issue 121, 15 December 1915, Page 2

CO-OPERATIVE DAIRYING.

Amalgamation Proposals. Negotiations Commenced. Those connected with the dairy business have for some time past deplored tfce enormous loss to the producer which has resulted from the overlapping of dairy companies. There is a butter factory in tbe le Aroha district, but cream is being sent from tbere to faeroa, Ngaruawahia and Frankton, Junction instead oi being made mio butter at the locs 1 factory, while io tbe Waiuku district, where tbere is a butter factory, some cream is chrried by boat to Onehunga and railed to Mercer tj be made into butter, thus involving enormous cost, as well as deterioration of quality. In other centres rival companies are running as many as three cream carts through the same disrict, while the work cuuld be done by one cart at less than half the cost In other places two butter lactones will ba found side by side, or a creamery, a cheese factory, and a home separation cart are competing for the business with varying success according to the respective prospects for the time being ot butter and cheese.

Ihesa and similar follies have resulted in a loss to the producer of the Waikatii of rrom £30,000 to £50,000 per annum, and—even more important still as far as tbe future is concerned—in a deterioration of the quality of thj product. While the war continues markets are good and the demand is strong, but thera is every probability that after tbe war prices will be poorer and markets weaker, so tbe producers are takng action to ensure economy by cutting out overlapping, and higher quality by turning products to tha brat possible account.

These conisderatiois bave for some time patt engaged the serious attention of some of tha large cooperative dairy companies of the Waikato, and bave resulted in a scheme beiiog tormolated for a general amalgamation. It is understood that all the companies operating in the South Auckland district will be invited to participate in the advantges of the proposition. Meetings will shortly be held to further promote the scheme. The proposals provide for 1. A purely cc-operative company, and to ensure its cc-operative entity being maintained it is proposed to distribute all profits on a butter-iat basis, provision being made to relieve "dry shareholders" of their shares under suitable terms and renditions.

2. The taking over by the new company of the assets of the several companies which join. 3. The i°sue by such new company of shares in lieu of those row held in nresent companies, subject to adjustments to meet varying conditions. f 4. The division 6f the territory occupied by the proposed company into ''electorates," the shareholders in Bucb electorates to appoint ope of their number to the directors' . board, thus ensuring representation from all districts. 5. The manufacture of either butter or cheese, and if butter ■' either by creamery or by home separation, according to the wisb of suppliers. The advantages from a union each as is contemplated are briefly set forth as including the manufacture of a better quality butter and cheese; the great reduction of expenses bv cutting out ot overlapping of organisations, and the delivery of butterfat at its natural centre; the cutting 1 out of friction and consequent waste; a stronger and more economical organistion on the local market, with consequent advantages; and possibly in time a stronger position on the London market. It is estimated that the advantages in a few years would more than total the capital of the combined organisation. 'lf the scheme is generally adopted the turn-over of the new company will probably exceed two millions per annnm, most of which will represent business done in England. With such large interests in Britain it is expected that tbe directors of the proposed company will give consideration to sending a representative to Londun as a means uf securing better returns from there, and to attend to the purchase of. articles of general utility for the company's suppliers, thus offering increased advantages in this respect also. ' y When the propositions have been approved by tbe directors of '.he several companies they will, of course, be submitted to tbe shareholders for adoption.