MANUFACTURE OF CASEIN.

Taranaki Daily News, 15 May 1917, Page 8

MANUFACTURE OF CASEIN.

ERECTION OF DRYING PLANT. FAVORED BY MIDHIRST SUPPLIERS There was an attendance of nearly' two hundred suppliers of the Midhirst Dairy Company at a special meeting which was held in tho Midhirst Public Hall yesterday, for the purpose of discusing the question of the manufacture of casein. Mr. W. Skcdgowcll, chairman of directors, who presided, stated that the meeting had been called in response to a wish expressed at last meeting to discuss developments regarding casein. Mr. Greville had been asked to place the proposals of the Union Casein Company before the meeting. THE NEED FOR CAUTION. Before going further, he referred to the serious difficulties that, have arisen about shipping, so much so that a great proportion of the butter output, in the case of Midhirst about 7000 boxes, was still in New Zealand. Finance was also fairly tight regarding any new ventures. Under the circumstances he urged them to be very guarded before adopting anything involving the expenditure of any large outlay, beyond what was being done at present. Perhaps it would be wiser to wait until the end of the w';r. He then called on Mr. Greville to address tho meeting.

AN OFFER FOR CASEIN. Mr. Greville stated that when representatives of the Union Casein Company of Philadelphia had visited New Zealand he had got in touch with them, and had since kept in touch with the firm. When he received notice of the present meeting, lie had cabled the company, asking for a firm offer for casein from a supply of 20,000 gallons, the Casein Company to manufacture the casein. In reply they offered 13d per cwt., (which lie thought should read 1001b of skimmed milk. The Union Casein Company proposed to put up green casein plants at each creamery and a drying plant at the main factory. An agreement would be required for' a .term of three or five years. He suggested a peppercorn rental should be charged for the land required, and permission should be given to remove plant, eta. He had discussed the position in regard to tho shipment of butter with Messrs P'owdrell and Murdoch, both of whom agreed that the outlook was serious. Personally, he felt that if two or three more refrigerated steamers like the Rotorua were lost, a cable might be received from the Government at Home, preventing the -shipment of any more butter. That was a most important point to consider.

THE VALUE OF ADVERTISING. He stressed the benefits to be derived from advertising, pointing out the success achieved by various productions owning to wide advertising, and said that it was a lamentable fact that the dairying industry of New Zealand would not spend a farthing in advertising on the London market*and to that neglect was due the reason why New Zealand butter had no distinct reputation on the London market. . He had carefully read the Glaxo proposals. There was, he said, no other district where milk was produced in such quantities on such small areas as in New Zealand, and particularly in Taranaki. If a Nestle's milk factory were established in the district it would shut up every co-operative factory because at Bacchus Marsh a similar factory had paid cut two shillings in tho flush, and up to 2s M, and no farmer would a'rguo that he was doing himself an injury if he received more than Is per gallon for his milk. AN ADVOCATE FOR CHEESE. The speaker stated that he understood the company had been offered cheese prices for their milk for glaxo, or butter plus 2d. He then compared -tl prices of butter and cheese. Taking Ballance and Dalefiold respectively for the past ten years the comparisons were: 1904-s—butter f).o4d, cheese 9d; lflOo-G —lO.3Sd, Is; 11)06-7—lO.flfld, 12.82 d;

1907-8—10.28(1, ll.!)2d; 1908-9—11.32(1, 12.98 d; 1909-10—11.10(1, ]2.0.1(1; 1910-11 -10.52(1, 11.93 d; 1911-12—12.10(1, 14.59(1; 1912-13—12.02(1, 13.25(1; 1913-14—12(1, 14.38(1; 1914-15—13.512 d, 18.38(1. In 1905 Canada shipped 93,380 tons of cheese to England, but in 11914 Canada's export of cheese had fallen to 00,782 tils, and New Zealand, on the. oilier hand, sent 4072 tonb of cheese to Kngland in 1905 and 33,000 tons in 1914. New Zealand, therefore, just mado up Canada's deficiency. While every country in the world, not excluding Iceland, was a competitor in the butter business, there were only two, and both of these British dominions, which wore competitors in the cheese business. If the figures quoted proved anything, they proved that New Zealand, with its big supplies of milk on a small area, was eminently adapted for cheese production. With regard to the shipment, he pointed out that cheese made in December was just now fit to eat. Usually cheese was shipped away before it was sufficiently ! jflßJmrcd, with the result that the merchant at Home held it for a few month s\ until it was matured, when lie received * Jiigher price far it, and this was a i loss. to the Now Zealand producer, who | was, usually, as anxious to ship his green cheese away as though there were no 'market for matured cheese. In support of this, he quoted the case of two I .tons of loaf cheese which had been mislaid for a couple of years, and, when sold, realised a high price with an enquiry: "Can you send more? It will realise any price." If matured cheese | were sold on the market it would fetch big prices. He instanced the case of 13 000 crates of condemned cheese placed by the English Government on the open market, where it realised 1525, the price paid by the Government being 9Jd. Hi*. recommendation to suppliers was to cheese, failing that, to accept the glaxo proposal, and failing that to make casein. If they accepted the

Union Company's offer they would have their factories erected at. no cost to them, and would receive equal to nearly Bd' per lb butter fat. - ■ The secretary slated that on the average test of 4 the. price offered* would enable an add ..<mal 2.i)ld to be paid out. If the buttermilk were also made into casein, it would realise. £7OO or £SOO, and bring the pay out to 3d. About 3ilb of dried casein could be produced from lOOlbs of skim milk, EFFECT OX CALVES. 'Mr. Kendriek wanted to know, if the offer was accepted, what restrictions would be made as to keeping back milk for the rearing of calves. If the matter was left to the directors there would always be trouble. Personally 'he wanted to rear calves, as, unless some reared calves, where were tho cows of (the future to come from? He wanted to bo enterprising, and thought they should manufacture something besides butter, but he wanted all the information possible. The chairman said that shareholders would have to give some guarantee. AX ADVOCATE FOR CO-OPERATION 7 .

Mr. G. H. Buekeridgtf, who was asked to address the meeting, expressed the strong opinion that no proprietary concern was out to benefit the farmer. He strongly advised them to carry on the manufacture on co-operative lines. 'lft> had always been looked on as a crank on co-operation, and lie was quite prepared still to be so'regarded. They had the benefit of his crankiness in the Farmers' Co-operative Organisation Society, which, it was said, was the dream of a madman, impossible to start and still more impossible of success. Well, it had had three years of life and had saved the farmers £IO,OOO. When in England three years ago a had made enquiries regarding casein, 'but found that it was practically in the hands of the Hermans. Siii'.'e the war started, the British Ministry had set iip a Board of Science to discover methods that the Germans had used that could he turned to our benefit. Amongst these were the products of casein. This wan rincipally used in the manufacture of paint, but every day new uses were being discovered lor easein, which meant more competition, and prices were more likely to go jip than down. This was proved by tl/o offers for casein lately. That day's offer looked a good one, but he had that morning received a cable from England on Which the price per 1001b milk worked out at 25.3754 instead of 13d, showing that the proprietary companies were not out for health purposes nor for the farmers' pockets, but for their own gain. Suppliers reckoned to not 3d. If they doubled the price received they would not increase the cost of manufacture, and the price therefore should be worth more than double to suppliers. The district had liad more experience of cooperative ventures than any other part of the world, and be did.not think any of thorn would care to go back to the days of proprietary concerns. They should form a co-operative company to manufacture the iby-products of mill:, i.e., casein and sugar of milk. He referred to the difficulties he had encountered many years ago in establishing a co-operative factory at Eltham, which proved so* successful the first year that the suppliers received 41-lfld per gallon of 101b, as against l%d per 111b gallon received the previous year from the proprietary concern. Tie had shown them what they ought to do; it was now for them to decide what they intended to do. To Mr. Shotter: The price cabled was £77 per ton. A QUESTION OF FRANCE. In reply to Mr. Kendrick, tlie chairman said that some time ago it was estimated that to instal green casein plants at each creamery would cost £4-200. and a drying plant at the maki factory £OOOO. , Mv/lvondrfc-k said, that even if times were hard it jhould not bo difficult for 275 shareholders to. finance this. They had to, make a start sometime, and if they 'waited until after the war was over, someone would be ahead of them. They were now sending away the green article, tad might as well go the whole hog. (Applause.) The chairman said that the directors had approached the bank to obtain an advance of £14,000, which included £4200 for green casein plants. £3SOO for Box Company shares, and £SOOO for new butter factory, but could not obtain jt ufiles. they increased their share capital. The directors had decided not to erect the .new factory. If they put up their own plant hey would require to take up shares; if they accepted the Union Casein Company's offer they woifld not. A supplier: Our own plant would Co3t £25,000. The secretary said that suppliers would require to take up one share foV every 71b of milk, or three times their present holding. Mr. Shotter pointed out that the Arampho Company gave them £4O per ton for green casein, which equalled 2y a d per lb butter-fat. He favored erecting a drying plant, which, on Mr. Buckcridge's figures, meant an additional £3O per ton. He believed in having an open market. _ Mr. Kendrick said that every Id meant £IO,OOO to t'ae ompany, so that if they only netted 1 an additional Id per lb but-ter-fat the cost of the installation would be defrayed in two years.

Mr. Buckeridge said that the price quoted by him was for fair grade. He understood that Midhirst aimed at making high grade. The chairman said that Midhirst sent the best casein received at Wanganui.

Air. Snngster understood that some casein was sold by tiie ounce. Mr. Shotter said that this was edible casein, which had been made in Midhirst. ;.

CO-OPERATIVE DRYING PLANT. Mr. Thomson asked whether the drying plant could not be run separately, and Mon,, Makctawa, and other companies asked to join in. Mr. fihottcr stated that they "hart been jipprcacheu,, but no action was taken. Each company was waiting for the other to start. Mr. Peterson, Government expert, said Midhirst was large enough to [■mi a drying plant of its own. If they started, ivo doubt other factories would Lake shares and send their casein to be dried. In replv to questions, Mr. Buckeridge said that Hi is offer of £77 or £7B was available at once. Mr. Greville said the Union Casein Company would also bid for their dry casein. THE MAIN POINT OP ARGUMENT. Mr. Pitt thought thftt the shareholders should first decide whether they were going in for the scheme before discussing the finance. The question was

whether they should go in for the manufacture of casein on a co-operatiyo basis or accept the offer made 'by. the Union Casein Company, which was equal to -.'Old per lb butter-fat. This company, a Philadelphia one, wanted a guarantee of three to five years. This, he thought, downed their proposal, as to guarantee anyone nt a time like the present was had business. If they did enter into an agreement, they did not know Nit that next year/the Government might pass legislation that only sufficient butter for local consumption should lie manufactured, anil that the balance must be chce?e. If, as was stated, the people at Home were starving™ some only receiving two meals a day, and tlicy were to quibble over an extra penny per lb instead of thinking how the people were to bo fed, they would miss the main point of the argument. ]f they entered into an agreement and could not fulfil it the Union Casein Company might mulct thein in 'heavy damages. Mr. Buckoridge: Government action would abrogate any claim. Mr. Pitt: In the case of an English company, hut not a foreign one. .Mr. Cuthbort: They arc our allies.

Continuing, Mr. Pitt said the offer sounded a good one, and but for the three to five years ho would be prepared to accept it, as it meant more than could he made out of calves and pigs. The same argument held good if tliey spent £20,000 in installing their own plant, for they would bo nailed down to the manufacture of jutlcr, and lie personally liked a free hand, until he knew their liability. He therefore favored going oil as they were at present.' Mr. Shotter stated that some of the expenditure in installing casein plants would prove useful if they decided to go in for cheese. The secretary, in reply to a query, paid, that the creamery suppliers had not paid anything towards the green c.isein plant at' the main factory, though it was recognised that this was in the nature of an experiment, the results of which would be beneficial to the whole company, • SKIM MILK v. CASEIN WHEY.

Mr. Susans advocated the company taking up the '; co-operative scheme whole-heartedly, fi-r.m the. manufacture of green casein to llie-drying and shipping Ho.ne. Ho held*Bo shares, but, if necessary, was prepared to take up an additional .'CO shares. ,let Midhirst he the lint to start and thus get ahead of pthers. He considered that the value of skim milk had deteriorated* owing to the amalgamation of the bacon companies, and when le war was over pigs would be worth very little. If they cooperated they could get back in casein what they lost, in pigs. It was useless continuing to feed pig* unless they started a factory of their own.

A voice: What about Inglewood? Mr. Susans: I air. .pleased Inglewood has pot joined.the company. Mr. Shotter understood that a sugar-., of milk plant could bo installed foi i: £2OOO, and this would enable them to pay out an additional 3d,

' Discussion then ensued as to the feeding value of casein whey J some ing it useless, ■ whilst, others remarked that it was considered so valuable that some factories had to instal scales to weigh it.

MOTION TO JNSTAL PLANT. Mr. Susans moved that the Midhirst Company instal green casein plants at tho creameries and a drying plant at the main factory and increase the shai'Oi capital to finance it Mr. Hancock seconded. Mr. T. Cuthbert favored making fond for the soldiers. If we wanted to win tho war we must feed the soldiers, c: scin was tot good food. '*; THE SHIPPING PROBLEM. Mr. Peterson considered that the main question was being overlooked. It was doubtful if they would get their produce Home next year. It was a big problem. Very nearly half their butter was locked up in New Zealand this year, and no ono could say what the position would be next year. . When they saw the number of boats that wore being sunk it made them consider what their position would be if they took this extra load or. their shoulders and were unable to get either their butler or casein away. If times were normal he would favor manufacturing casein. In reply to n query he would not say whether he favored continuing the manufacture of butter; that was for suppliers to decide. Mr. Davis said if they installed the casein plants at the creameries, with very littlo expense they could change to cheese, which was more likely to be shipped Homo. Mr, Ppllpek proposed that they manufacture eJieeje, This, was wconded in

two or three places, but the chairman ruled the proposition out of order. Mr. Western thought they should b* cautious in their expenditure uni.il after the war, as they did not know what would happen. They did not want to put in plants and then have to turn to something else. The chairman said that the factory would be open to deal with green casein from other factories. Mr Kangster'advocated caution before undertaking a large expenditure. Farmers sirieo the war had never done bnt>ter. The war .was at a critical stage, and they should think twice before embarking on a large expenditure. Mr, Fenwick said that Inglewood had turned the casein down, on the ground that it was not feed. Other suppliers considered the whey would be very little use for calves or Mr. Lihnel said his pigs had gone, but his calves were to 'be seen, and they looked as good as, if not better than, most others. They had been reared on casein whey, sayo for the first three weeks on new milk. This also applied to pedigree cattle. The chairman considered they should adopt the advice to be cautious. The Aramoho Company, ho said, paid out l'/jd for the firs,t,year, ..and MwHiirst paid lv,<l. Last year .»Aran>.oJu>'lifliij, them 2 J / 5 (1; the Midhirst (Company now their own expenses aß&faltUAnt li'l^Wdt 1 Mr. Hogg dry casein plant ,they wguld ,s]%&£§'s., to build a ne\V butler, factory! ' ' •AX AMENDMENT. Mr. Mcßrido moved an amendment thr|,t the question,, ottftwoin be postponed until tho directors aie of opinion that the conditions are more favorable. Mr Eiokstaodt. se^uded^ ThctfjMirWn^tifeV' ttf Motion, said they would;,be labor question in the* manufacture of casein. At present, in factory, they, wcie. abort of labor.

TiPi,#»TIGX CARRIED. m(^t?(*i« ! ,flfo»WW--!m>t > 'no«essary. qn jt ment and <X) for the motion. It wa» stated that a proportional malonty as lcqiured, bub doubt was cxpressed as to the actual lo»jority necessar>. The chairman staled that the. present meeting was in the nature of a notio? of motion, and. ttio matter would lie again put before the shareholders, when a ballot would be taken on the question, jV ; , ■ < «il,j.-