BUTTER v. CHEESE.

Taranaki Daily News, 2 July 1917, Page 6

BUTTER v. CHEESE.

THE STRATFORD DAIRY COMPANY. NO CHANGE THIS SEASON. Stratford, June 30. (From Our Own Correspondent). The Parish Ilall was all too small to hold the suppliers of the Stratford Farmers Co-operative Association 011 Saturday to discuss the question of manufacturing: cheese. V Mr. Dingle, chairman of directors, in introducing the subject, said the directors had heafrd there was a certain amount of discontent amongst some suppliers as to continuing the manufactur* of butter, and it was to give all shareholders an opportunity to discuss the question of the manufacture of cheese that the present meeting was called. They must consider the matter very seriously. If they made the change they would find the labor very hard to get, in fact it was hard to get at any time. The difference between the labor required for the manufacture of butter and cheese was considerable. Again, they had to consider the output. Men on the land were likely to be called lip, and he pre. dieted a falling off in the volume of milk supplied. Another difficulty, in they went in for cheese, was the supply of rennet. Regarding finance, their factories and creameries were all good value, and thoroughly up-to-date. They Jiad not starved their factories to pay out increased butterfat. Going into cheese meant an outlay of about £30.000, which must be repaid in three or four years. Personally, he was a butter man, but he recognised the position. About building he had been told that a neighboring company could not effect the change before next February. His advice was to approach the change very carefully. There was a rush to go in for cheese and neglect butter. If they decided on a change he hoped they would put up a substantial building like Ngaere; it was no use stinting in this direction. He realised there were difficulties in the way of shipping butter. It was not a matter of chance, but a fact that cheese had the preference. There was a likelihood of cold storag* rooms at various centres for cheese being set up, and the Moturoa people been approached as to what space was available for cheese, so they could see butter had to stand aside. There had not been much difference in prices ruling between butter and cheese of late years.. He knew nothing about the intentions of the Government, but he had more than a suspicion that the British Government would commandeer both butter and cheese, and they would offer the same price at per lb butterfat. By next January they could be ready for cheesfc, that was if the suppliers desired immediate action.

In reply to a question as to the difference in cost between butter and cheese, the chairman said it was hard to 6ay, prices and conditions were continually varying.

Mr. Rawles said they were up against big questions. The labor difficulty, supply of rennet, and then to raise £30,000 within three or four years, involved some consideration. He vras not prepared to move a resolution just now. Mr. Kennedy hoped they would stick to butter. (Applause). Mr. O'Neill (Te Wera) said the directors had better opportunities than suppliers in the baekblocks of judging as to the advisability of making a change. He would like to see a statement made as to actual cost to the company of making a change anff erecting cheese factories. Without the figures he would not favor a change. Also, what were the prospects of both butter and cheese next season. The chairman reiterated that no one could say with any degree of certainty the exact sum required. Regarding the future, he wished he could say with confidence, but some years it paid to consign and other times they found it paid to sell. The directors had to use their own judgment.

Mr. R. McK. Morison said he was an advocate of cheese out and out. But they were too late in starting, and under those circumstances he believed they should go in for butter. There were too many obstacles in the way to make a change. He wished to know, if Toko could po in for cheese, finance the change themselves, and still remain with the company. The chairman said there were many objections to the change. It would oe a difficult thing to allow an alteration like that. If cheese was made at Tokb it meant that shareholders supplying there would require to take up 2000 additional shares It would take with butterfat at present about. 12 years to wake the money. If t' ,n vlmV of the company went in for cheese they would i< to increase the number of shares. If a creamery broke awav and went on its own the company received no benefit. I The expenses would IUO go up. It would ! not be wise to sanction a move like that. It meant much more work, separate accounts would require to he kept, whey would have to be recorded, and .amounts for whey butter separated, whilst the installation cost would have to be charged. To illustrate his point, if Robson Road creamery broke away it 1 would be of no benefit to the Stratford •Company. It meant they would have to take lip 4000 extra shares. They would require extra machinery, and the articles of the association would have to be altered, and after all he doubted whether the lobsoit load suppliers would be better oil if they went in for cheese.

Mr. Morison said ho hoped to see a cheese company in work at Toko. It was a natural centre. He thought that this was bound to come, and if the company was not careful Toko would break away. Yet, just now they should stick to butter and next year go in for cheese. Mr. Luxton said the company should have gone in for cheese several seasons back, and thev would now have been many thousands of pounds better off. (Applause). Mr. O'Jfeil. in order to test the feeling of the meeting, moved*:' ''That it be a recommendation to the directors to go in for the manufacture of cheese as soon as possible." Mr. Hunt seconded the motion pro forma. The matter had been shelved every year, and they had consequently done nothing. Many suppliers were against the proposal prpbablv because they believed the difficulty in securing machinery was insuperable. Still, with all the discussion, they knew practical!*' nothing. They were not going (o vote for an expenditure of £30.000 without further information. The chairman: The information is available. As near as we can*get it, the cost of installing cheese will be £27,370 Is. He offered to rciul the full details of cost to each creamery if the meeting desired.

Opinion was divided, Mr. I .o'Neil stating that they could not go''in for the change inside of four months 1 or more. Mr. Tom Ranford consideredythe compws

cheese plant; they would thus have dual machinery and manufacture whatever looked the bette." proposition. Mr. Lochhead considered that cheese was the correct move, but all recognised the move was too late for the coming season. In reply to an inquiry for information regarding prices ruling between butter and cheese, the chairman said probably about 2d, that is comparing prices of Stratford (butter) With Ngaere (cheese). Air. O'Neill's motion was then put and on a show of hands, lost by a large majority. The following motion brought down was then put: "That it be a recommendation to the directors to call the shareholders together next January to discuss cheese and in the meantime to manufacture butter." Mr. Lochhead questioned the wisdom of holding a meeting in 'January when farmers were so. busy at that period. Mr. Kennedy said they could rely on the directors to meet the wishes of the suppliers as to date . Mr. Morison moved to substitute for "recommendation" the word "instructed' Two favored the proposal. The motion was then put and carried, there being only two dissentients.