PROPOSED BUTTER FACTORY.

South Canterbury Times, Issue 7066, 11 February 1893, Page 3

PROPOSED BUTTER FACTORY.

The meeting of “ dairy farmers and others interested in the establishment of a dairy factory at Timaru," convened by Mr O. F. Olulee for this morning was not largely attended. There were preaenfc Messrs Olulee (in the chair), J. Mundell, B Gould, T. Mitchell, W. Austin, Edmiston, D. Shaw, and Scowen, and Mr Crawford, Government expert and Mr Soott, secretary to the Middle Island Association, attended to give information. Mr Crawford explained that the latest system of working butler factories was to have a central fuctorj with “ creamery ” attached, and “ creameries ” at outlying points to receive milk from farms in their neighbourhood, separate the cream and send it to the central factory to be churned and packed It was suggested that a factory could be set up at limaru, ai d to start with creameries at Studholme, Makikihi, St. Andrews, Trmuk», Orari (or Winchester), Geraldine, and Pleasant Point. TSo creamery should bo started unless a guarantee was given for the supply of milk from at least 100 cows in the near vicinity. On the supposition that such a guarantees could bo got at each of the places named, and that 3d per gallon were paid for the milk, Mr Crawford gave the following estimates on that basis First cost factory and creamery, at limaru, £BSO, seven creameries at £350 each, £2450 , £3300 ; if freezing machine added at factory, £350, the total would be £3650. Working expenses, on the supposition that each creamery received 3CO gallons per day and the central factory 1600 gallons, in all 4000 gallons per day,— wages, coal, oil, etc. etc, £4O per week ; 24,000 gallons of milk at 3d (skim milk returned) £3OO j depreciation on plant and buildings 10 per cent, £7 per week, total £347 per week. Receipts—S6oolbs of butter weekly, at 9Jfi f o.b , £3BO less cost of packages 2s 8d per o* b, £ll 9s 4d, £368 10a Bd. Profit, £2l 10s 83 per Then the skim milk was estimated to be worth id per gallon as pig feed, with other feed stuffs. The yield of butter was based upon experience elsewhere, and the price named 9Jd f.o.b could practically bo guaranteed by the Dairy Association, and it might be better. Mr Crawford Slid the estimate of working expenses war a liberal one, provided good managers were employed, and if the supply increased the running expenses would not bo much increased, so that the profits would be proportionately larger. This was a business in which the profits grew out of small fractions, and the greater the number of fractions, the greater the profits. He read a portion of a paper read before the Wyndbam Farmers’ Club (Southland), in which Mr D. Doull, a practical farmer there, gave

calculations showing that on a 150-acre farm dairying would return (from 50 cows) £2 2a 61 an acre, and crossbred sheep only 16s lid per acre. One neighbour told him his cows averaged last season £7 12s per bead, and another that on several occasions his cows averaged £IO per head. That was for cheese making. It was not proposed to start a cheese factory here, as a sufficient quantity of milk could not be got within a reasonable distance. A wide district would have to be worked, and when that was the case only the cream could be carried.

Referring to Mr Doull’s comparison between sheep and cows, Mr Mitchell remarked that it was not a question between sheep and cows; either might go wrong, and they should not have all their eggs in one basket. He quite believed that no butter ought to be exported that was not factory made. Mr Crawford said that every pound of mixed butter that was sent away was a curse to the country. Mr Scott referred to cable quotations dairy-made 70j, factory-made 110 s to 116 s per owt—to show that it was sheer waste of cream to make up butter on the farm. That was the experience of last year, and it was being emphasised this year. There were men going round buying butler for export (be had done a lot of that himself) but it did not pay. The only way our dairies could hold their own at Home was by sending nothing but first class produce, and that they could do through tho factory system. Mr Clulee said it was proposed to form a company with a capital of £SOOO, in £1 or £2 shares, and Mr Crawford suggested that a dividend of 7 per cent should be paid to capital shares out of profits any profits bayond 7 par cent to be divided among suppliers of milk, to increase (he price beyond 3d per gallon. The proposed company would have this peculiar advantage, that it would have tho benefit of tbe experience of the Government export, who would simply plans of buildings and machinery, find them competent men to run tho concern, and see the thing fairly started, for nothing. In reply to a question Mr Scott said tho factory would not run all tho year round, but only in the flush milking season—unless tbe central factory wore kept going by the local demand. The season here would probably be from the Ist September or Ist October till tho end of April. Tho time of starling must bo settled by themselves, but generally speaking they ought to be prepared to start on a smaller than the standard supply, so that no one should bo losing on his milk. Shipments Home should cease at the end of February, but the March and April product could be well disposed of in New Noulh Wales and Queensland. There was always a demand there for really good butter. Most people who wanted butter at all wanted it good, and particularly so when it was dearThe farmers must take an interest in (he company by taking shares. Nearly every factory owned by individuals had come to grief, because the farmers, if anything else seemed belter for the moment dropped dairy ing for a year, and the factory bad to shut up. On the other hand factories owned by suppliers had been a success all along, paying good dividends and a good price for milk, Everyone in the district ought to feel an interest in this project, and especially all land owners, for there was nothing like dairying to increase settlement. Tbo Lmd Company fully recognised that, and Mr Brydone had promised to give a similar movement at Oamaru his beat support. The success of dairy ing undoubtedly meant increasing tho value of land.

It was decided to hold another meeting on Saturday, March 18th, Mr Crawford to come down a few days before to hold meetings in the centres, where it is thought creameries may be started, and those present undertook to “ get the thing talked about "in the mean* time, Mr Mundell especially promising to push it in Geraldine. A vote of thanks to the chairmen, and Messrs Crawford and Scott was proposed by Mr Mundell, who said he believed they had got the nucleus of a big thing for the district, worthy the support of everybody. During the meeting Mr Scott referred to the work of the Dairy Associative, of which he is secretary. This is an Association of a number of factories, who appoint a committee to attend to the shipping and sale at Home of all their exported produce, this combination enabling them to make the best terms for transport and realisation. The Association has also employed exports to go Home to eaquire into the beet ways of shipping, effects of different temperatures in the cool chambers, and the reality of the cooling supplied on the steamers, and one of their experts has improved the conditions of shipment by devising means of ventilating the chambers. Mr Soott had with him a mass of printed reports, of meetings of the Association and from their experts; and from their balance sheet for the year ended Jane 1892, we see that the Association shipped that year, for 19 cheete and four butter factories, 924 J tonsloheese and 27 tons of butter. There funds consisted of subscriptions from the associated factories, £B7 11s (less than £4 each) and £335 from Government subsidies, paid to the Association (Mr Soott informs us) ou account of their doing work of value to the colony generally, all their reports and proceedings being made public.