BUTTER AND CHEESE.

Stratford Evening Post, Volume XXV, Issue 63, 17 March 1915, Page 7

BUTTER AND CHEESE.

STRATFORD CO-GF. DAIRY CO. SHAREHOLDERS STICK TO BUTTER. The meeting of .shareholders of th ■ Stratford Co-operative Dairy Co. at tinTown Hall yeserday morning was attended by about 200 shareholders. -Mr R. Dingle took the chair, and the manager (Mr F. J. McDonald) was also present. The matter for discussion was whether the company should change from the manufacture of butter to cheese.

The Chairman, in his opening remarks, said they would remember that this matter had been discussed at a meeting in February, 1913. He was pleased to see so many shareholders present. He pointed out that several Midhirst people were present, us they asked that they might be allowed to hear what the Stratford suppliers had ; to say. This was agreed to. Proceeding, the Chairman said that in connection with his remarks they must remember that they had not consigned their butter for the open market. They would have to consider what the butter was worth on open consign ment and what cheese was worth on open consignment. He took it every shareholder had come to the meeting with an open mind, and that they would come to a decision after they had lltard the figures. He had heard it sai ( ) outside that directors would force the proposal to change to cheese-making on them, but this was not true. He did not want theln to take the price of cheese at the present time into consideration. When they were thinking about cheese, they would have to go back before this year. They were a company, and the Chairman expressed the hope that they would stand by the decision of a majority. If the proposed change was made the capital would have to be increased by £20,000. Any person supplying 19,0001 bs would take np 233 shares; IO.OOOIhs 125 shares, and 80001 bs 100 shares. A person holding 50 shares at the present time would have to take another 50 shares. It was estimated that it would cost the Company £15,000, and they would have to take np shares to that amount. Interest would have to he paid amounting to about £IOOO tor the first year. Depreciation on both plants would have to be paid also; and the plant not in use depreciated more than the other. Depreciation at 7\ per cent, would amount to £2,250. r i be bank would ask for 71 per cent, depreciation. Under the present circumstances it was difficult to finance. He pointed out that surplus shares for butter could not l)o made use of; every share required for the £16,000 would be a new one. They would have to pay 20s in the £1 for each share. If they decided on cheese to-day they would have to take out fresh Articles of Association. With regard to the cost, if they had decided to take up cheese some years agotho machinery would not have cost so much as at the present time. The manager considered it possible to have the work done at £15,000. The factory at Makuri would still be run as a butter concern. In all, they had nine factories. The capacity and cost of the buildings would bo; Stratford (-1500 gallons), £2563; Gordon Road (2300 gallons), £2,302; Skinner Road (2520 gallons), £2520; Douglas (1200 gallons), £1214; Huiakama (1000 gallons), £1094; Robson Road (1800 galj Ions), £1780; Toko Road (1900 gallons) £1780; Toko (2100 gallons), £1502. At first sight the Toko people might say they bad a cheese factory at present, but the place was built several years ago, and was quite out of date. They could not do much with the place. A question which needed a good deal of consideration was the difference in I value between skim milk and whey. , Some valued skim milk at 3d per i 1001 b., others 2d and Id. PersouI ally he did not think 3cf was a good estimate; a man would have to be very fortunate to get 2d out of the skim milk. If they put skim milk against | whey it would lie a fair thing. People had told him that they could not get enough whey. Toko people had received lid for their skim milk from the Casein Co., and they had turned the proposition down —for what reason he did not know. The Chairman asked those present what their opinion was as regards skim milk as against whey. A supplier: Skim milk is worth l)d to anybody as against whey. Another supplier; I consider my skim milk is worth 4d, I do not give the pigs hard stuff.

j The Chairman said that if the meeting was of tho opinion that skim milk was worth 3d they had better stick to I hotter. He then gave figures showing the prices for cheese from two compaoI ios not a thousand miles from Stratford, and those for their own butter. In (he year 1910 (lie cheese was 11.37 cl and 11.70 d, hutjter 11.10(1; in 1911, cheese and 12.25 d, butter I 10.89(1; in 1912 cheese 15.3 d and 15.5 d ; | butter, 12d ; in 1913 cheese 12.73 d and | 13d, butter 12.53 d; in 1914 cheese 1 13.73 d and 13.87 d, butte,- 12.3U1. He ! pointed out that whey took a good deal ! of looking after to make anything out of it. It would he necessary to educate themselves up to it. The average price over five years for cheese from one factory was 13.1 d, from another 13.27 d, while butter was II.SGd. If the skim milk was worth 2d butter was as good. If lid was added to butter it meant nearly 13d. The past year had been a good year for both butter and cheese. The cheese, however, would go hack to normal. The Chairman referred to the competition set up by the. manufacturers of margarine, and the following letter

Mj Nclnon, London vrpfe’Siit-a- (,|| (he National Dairy Association, I was read: — “Margarine to-day is still being retailed at sixpence per lb., and evidently affords a big profit to both manufacturer and retailor, otherwise, they would have advanced their prices. At Is Id to Is Gd per lb. butter is hocomi a luxury, that is, as far as home dependent up to 30s lo 40s is concerned. An American writer has recently put the following figures on record regarding the margarine trade:—ln 1908 ■IO,OOO ton were produced in England in 1913 100,000 tons were produced, so in live years the make has more than doubled, besides which, 77,000 tons wore imported in 1913, which gives 'a per capita allowance of BJibs, for each man, woman and child in the United Kingdom. Holland consumes 20lbs. per head per annum, and Denmark 3 libs. per head, Norway 24-Jlhs. per head, the three last-named countries therefore having an average consumption per head of 26lhs or three times that of the United Kingdom. It is difficult to contemplate what may happen if in this country the per capita consumption were to rise to 24lhs. You are undoubtedly aware that in times past various spasmodic efforts have been made to try and do sometiling towards protecting butter against the inroads of margarine. From one cause and another—mainly want of co-operation and fighting fund nothing has been accomplished; the giganstrides made by the margarine people. their scientific methods and adriot system of advertising have now so [firmly established their position that nothing can now he done to check their growth. Personally, 1 regret having to say so, but we might as well face facts and admit that the margarine trade has won its place and will not only keep it, but from year to year will become more and more known and used by the British public. At the present moment we have little to complain of, butter prices are high, and i only hope they will continue so for many years, but f have my doubts. The present high prices of butter is due in a measure to a coTvTbination of circumstances. The primary factor is, of course, the war. The imports of butter into the United Kingdom during August, September and October, 1914, were 786,8()0cwt„ for the same three mouths in 1913 the quantity was 932.SOOcwt. This shows a shortage of 146,000 cwt., or 292,000 boxes of butter.” The Chairman, continuing, said that he understood that margarine was as good as butter, and was used in the best hotels. It had not affected the price of butter so much as some people would like to make out. There was no similar competition with cheese. In conclusion, the speaker said he would bo very sorry if any should break away. He did not think they would lose ranch if cheese was decided on, but considered that they would get a good price for their butter. Mr McDonald (the manager) was going to submit figures. They were not random figures, but had put him to a good deal of trouble. * The manager (Mr McDonald) said he had made'estimates for the cost of the change. His first estimate was £17,000. He went into the figures again and was able to make a reduction of £2OOO. 'This reduction was owing to a re-arrangement of the buildings. He considered his estimate came very near the mark. The Chairman then invited questions.

Air Sangster said he could not support the 1 proposal in its present form to change the whole of the buildings to cheese factories. Ho suggested five cheese factories.—The Chairman pointed out that this would mean the company would be a harder proposition to run than it was at present.—The manager said it would be impossible to have five cheese factories. Mr S. J. Rawles moved that they continue making butter for the next season. The Chairman said that it was rather early to pass a motion, and the question was a very big one. He thought that the facts of past experience had been plainly put to them. A shareholder: The time is not opportune to make a change. I think it should be postponed for another year. After some discussion the motion was put,and carried on the voices.