REDUNDANT FACTORIES.

Taranaki Central Press, Volume IV, Issue 358, 12 February 1937, Page 4

REDUNDANT FACTORIES.

ZONING OF SUPPLIES.

Conference With Commission At Stratford.

Representatives of the Midhirst, Tariki, Kaimata, Maketawa and Moa Farmers’ Dairy factory companies, wiere present at, a confferejnciei at Stratford to-day with the Executive Commission of Agriculture, which is making a tour of Taranaki with the purpose of bringing about the rationalisation of the dairy industry by the elimination of redundant factories and the zoning of supplies to prevent overlapping and wasteful collection servicer

The personnel of the Commission is; Hon. Sir Francis Fraser (chairman), Messrs David Jones, G. A. Duncan, and A. D. Steel (secretary). In the East Coast and Bay of Plenty districts, which were recently visited by the Commission,, several factories had agreed to zoning of supplies. Although the Commission is vested with compulsory powers it has not had occasion to invoke them and every endeavour is made to bring about rationalisation by voluntary agreement. The Commission has been overwhelmed with requests' from dairy factory companies and in the meantime it is only possible to deal with the most urgent. It is very probable that another visit to Taranaki will be paid within the next few 1 months.

In a statement to the “Central Press” at the conclusion of the proceedings, Sir Francis Frazer said the Maketawa and Tariki companies were desirous of having exclusive zones allotted to them. It was pointed out by the Commission, however, that the Commission had no power to zone a company receiving whole milk against a company receiving cream, or vice versa. In view, then, of the relatively small quantities of cream collected by the Maketawa and Tariki companies, it would not be reasonable for the Commission to take any action to prevent the Moa Farmers, which was purely a cream-collecting company, from operation in the territory covered by the Maketawa and Tariki companies. Considerable discusison ensued as to the possibility of the amalgamation of Maketawa and Moa companies, or alternatively, the making of an arrangement by which the manufacture of butter for both companies would be carried on at the Moa factory instead of at both factories as at present.

A similar arrangement between Tariki and Midhirst was discussed. Sir Francis Frazer said it was highly desrable that accurate figures as to possible costs savings should be obtained before any plan was definitely decided upon. He suggested that the Commission should be authorised by the companies represented at the meeting to appoint two competent accountants with dairy factory experience to investigate all the possibilities at the end of the present dairy season, when the accounts of the different companies for the year bad been made up. It would then be possible for the Commission to meet the companies again and place before them a definite recommendation.

Ho indicated that In the event of arrangements being entered into by the companies along the lines indicated, it would be possible to define a boundary between the Moa-Maketawa group on the one hand and the Tarikl-Mldhirst group on the other hand, which would reduce overlapping to a minimum.

A resolution on the lines suggested by the chairman, moved by Mr. R. B. Sutton (Moa) and seconded by Mr. J. Browning (Tariki), was carried. It was supported by the act-ing-chairman of the Tariki Company, Mr. Rumball, and Mr. Kaye (Maketawa).

Sir Francis expressed the appreciation of the Commission for the assistance given by tho company representatives .