TUAKAU

Pukekohe & Waiuku Times, Volume 7, Issue 387, 28 June 1918, Page 2

TUAKAU

DBIED MILK QUESTION

DAIRY SUPPLIERS' MEETING. AMALGAMATION FAVOURED. A meeting, convened by the New Zealand Dairy Ass ciation for the purpose of discussing the dried milk question, was held at the Public Hall, Tuakau, on Tuesday everting last when suppliers and farmers numbering about 100 and representative of the district around Tuakau were present. Mr R. H. Mackenzie (a director of the Association) presided, supported by his codirector, Mr W. 0. Motion, and Messrs W. Y. Kirkman and M. Shaw, the Association's representatives. Among others present in the body of the ball were Messrs Dynes Fulton, local director of the Waikato Co operative Dairy Company. The Chairman, in announcing the object < f the gathering, briefly referred to the negotiations entered into by the Association with Messrs Joseph Nathan and Co whea the glaxo proposition was under consideration. Before approaching the Association, he said, Messrs Nathan, who had a contract to supply the Imperial Government with butter, had decided to erect a factory for the manufacture of glaxo had those negotiations not been completed. The proposals were submitted to the . suppliers and were conducted on a business basis and, said the Chairman, the Association is still thoroughly co-operative Mr Kirkman then addressed the meeting and first described the process of manufacture of glaxo by Messrs Joseph Nathan and Co. As to the proposal to manufacture skim milk powder, Mr Kirkman questioned, in view of the limitation of supply and the control of the milk product in England by the Controller of Food, the accuracy of the price that Mr Goodfellow claimed could be obtained for dried milk powder. As to the financial aspect, the capitalcost of the plant and buildings for adried milk factory, he said such was borne by the shareholders participating in the benefit to ba derived. If a factory were erected at Tuakau a guarantee of the supply from 3000 cows would be necessary and the district suppliers would have to provide about £15,000 towards the capital expenditure although there was no occasion to call up that amount on the first year's working. Alluding to the prices mentioned by Mr Goodfellow Mr Kirkman asserted that there was no guarantee that those prices could be obtained as tiny largely depended on the war conditions. From recent cabled information to hand he questioned if more than 376s could be obtained as against .510s mentioned by Mr Goodfellow. Mr Motion, as a Director of the Association, said that if the suppliers wished to make any change in the manufacture of products the Directors would be prepared to consider and carry out any scheme they desired. "We have (said Mr Motion) to live and let live and there should not be so much competition between producers as there is." (Hear, hear). TLere was not only competition in the production of the article but also in the selling which affected them all as producers. He urged that as producers there should be more unity in the production of butterfat ; otherwise they as producers would never realise the maximum amount of return. Mr Motion added that there was a possibility that after the war the same market for dried milk powder would not be available. With the good value obtained for the bi-products of butter, such as calvos and pigs and j the advantages of the home separa- | tion system, Mr Motion thought the present me hods of the Association were on the whole satisfactory. On the question of amalgamation he mentioned that some years ago a meeting of represser tatives of various companies was he'd at Te Aroha and a basis of agreement was almost settled but owing to conflict between certain r.flu-ials that proposal •' was upset If, said Mr Motion, .the dirci tw-r.s i ad tuken the matter up then they would be a more united body and suppliers would now be deriving greater benefits out of the produce of butter-fat The Chairman remarked that there was practically a unanimous feeling on tiie question of amalgamation and when the supp iess *♦! 1 th.»y should amalgamate they would have to do uf hsrioNS _ * On questions being invited by the chairm ;u a pupplier asked why the dry milk p twder had .been prohibited for export from the United J'ta'es, to which Mr Kirkman replied that ho believed it wa9 to conserve the interests an 1 to retain ill then' wns in the biuiness in the United Sla'e^ Mr P. •acock enquired what proportion of milk was contained in a pound of glaxo and was informed tha' ther« were 12lbs of powder for pvptv lOOjfos of milk

Mr R Fulton (Whangarata) quiutiow 1 the wisdom of the Dairy Assnciatio i suppliers at Matangi bein r under any obligation to Messrs Na'han as the business was theirs ami not Messrs Nathan's. The Cha'rman pointed out that Messrs N.itlian could not make any milk product in a district in which the Association wore operating. He considered that the Association s foresight showed good business acumen.

Mr Lawson asked assuming the Association operated in 87 districts, what concession did Messrs Nathan and Co rooeive by being put out of action, tn whidi Mr Kirkman replied tint no quid pro quo was given them. The questioner somewhat doubting this, Mr Motion humourously added " You see the Association" was shrewd enough to stop them from operating." (Laughter). Mr Lawsun then enquired why in the sale of dairy products the Association, as a co-operative concern, should employ a third party, to

which Mr Kirkman said that it »M not possible to effect sales except through an agent. Mr Lawson suggested that it WM possible to deal direct He failed to see that under such ciicumstanoes the Association was altogether cooperative. _ , Mr Craig sought advice as to whether the Association could offer sufficient inducements for a change to the manufacture of dried milk.— The Chairman: "It is purely ft question for the suppliers." Mr Craig, recognising the value of the by-products, expressed him-, self as doubtful if any change in their present methods was desirable. Replying to an enquiry by Mr H. H. D. Wily whether 3s 6d per lb could be obtained for dried milk powder Mr Kirkman said that there was nothing to justify the figures quoted. DISTRICT MEETINGS PROPOSED After some further discussion it was suggested that the whole question of the manufacture of _ dried milk should be carefully considered by suppliers in each district. 1W Sims accordingly moved and Mr Hi H D. Wily seconded •" that the, President of the Fanners 1 Union in each area should convene a meeting • of suppliers and that three representatives from each district should attend a central meeting and report the result of their deliberations within fourteen days." It was suggested in this connection that the views of each director of the Association should be obtained separately. The motion, on being put to the meeting, was carried unanimously. _ AMALGAMATION OF INTERESTS The question of amalgamation was mooted and Mr R. Fulton re-' marked that the suggestion of amalgamation emanated from the Association whereupon Mr Kirkman pointed out that Mr J. Clark (one of the Directors of the Waikato Company) at a recent meeting at Moirinsville strongly advocated amalgamation. The Chairman at this stage invited Mr Dynes Fulton to speak on the subject, and Mr Fulton admitted that he was in favour of amalgamation provided it was satisfactory to all parties concerned. Too many conflicting statements, he said, had been in circulation about the respec- ... tive companies and the sooner the farmers put their heads together and demanded amalgamation the bettor it would be for everyone_(ap- ; plause). As a Director of the Waikato Co-op. Dairy Coy, he was strongly in favour of amalgamation (hear, hear). Following the discussion, it was resolved, on the motion of Mr Piggott, who was a strong advocate for co-operation, " that this meeting of suppliers views withmuoh concern and alarm the competition between the companies operating in the BouJh Auckland district and Btrongly urges that the companies should amalgamate at the earliest possibly date." • . • A vote of thanks to the Chairman and the speakers brought an enthusiastic meeting to a close.

20/6/18.