NATIONAL DAIRY ASSOCIATION

Taranaki Daily News, 22 June 1918, Page 3

NATIONAL DAIRY ASSOCIATION

ANNUAL MEETING. (From Our Special Reporter). The annual meeting of the National Dairy Association was held in Pulmcrston North on Wednesday. Mr A. Morton, Chairman of Directors, presiding. There were also present Co-operative companies: Awahuri, Awatuna, Alton, Ararata, Ashurst, Aria, Apiti, Ballance, Belvedere, Bunnythorpe, Bell Block, Cardiff, Cambridge, Carrington, Collingwood, Dalefield, Dannevirke, Eltliam. Featherston, Greytown, Golden Bay, Hawera, Hurleyville, Hukanui, Heretaunga, Hamua, Joll, Kaponga, Ivaupokonui, Kia Ora, Kairanga, Kaitawa, ICaiparoro, Kaimata, Kuku, Lowgarth, Linkwater, Mangorei, Midhirst, Ttlauriceville, Mangatainoka, iMasterton, Maketawa, Mangatainoka, Manutahi, Matamau, Mangahao, Manawatu, Maxima, Moa Farmers, Melrose, N.Z. Farmers' Dairy Union, Norswood, Ngaire, Normairby, Northern Wairoa, Nireaha, N.Z. Dairy Association, Nuhaka, Norfolk, Newman, Newbury, North Taranaki, Omata, Otaraia, Pfirkvale, Papatawa, iPutara, Pahiatua, PioJPio,. Riverdale, Rata, Ranmati, Rai Valley, Rexdale, Rapanui, Rongomai, Riverbank, Ruawai, Rangiotu, Tikorangi, Taratahi, Tariki, Thames Valley, Te Kuiti, Te Horo, Tar&rua, Tataramaoa, Tuna, Uruti Valley, United, Whenuakura, Whakaronga, Woodville, Wellington Farmers; proprietary factories. H. R. Bunny, Defiance (J. Nathan and Co., Ltd.),Wanganui Fresh Food and Ice Co., Checkley Bros., W. Duncan, F. W. Falconer and Co., Pongaroa Dairy Co.; exporters: A. Clements and Sons, Foley Bros., Oetzes and Gerritsen, Pearson and Rutter, Rowson, Hodgson, and Co., S. V. Nevanas and Co., N.Z. Co.-op. Rennet Co., Ltd. j CHAIRMAN'S ADDRESS. The Chairman referred to the fact that the greatest struggle in history was still continuing but its effect was not so serious as expected. Despite the depletion in the ranks of the producer, which looked as if it would continue for some time yet, production had still kept up. When they considered the skilled labour that had been taken from the factories in assistants and replaced by unskilled labor it was only to be expected that the quality would suffer. It had done so, but it had only suffered slightly, and they had been able to maintain the same standard as had been maintained for years past; whieh was distinctly creditable to those concerned. During 1018 they would find that the value of the season's produce in butter and cheese had been over eight millions. It was essential in times like the present, when so much depended on production, to enable us to pay our way in connection with the war that production should be encouraged. The producers themselves had spared no effort, but there were times when they thought the authorities did not give them sufficient encouragement. The past season had been exceedingly favorable to production. There had been a good spring followed by a good summer. Auckland province particularly showed a largely increased produc- i tion, this being maintained at the same rate as heretofore. There had been a continuance of the change from butter to cheese, and but for the expense of building and equipping a factory a good many more no doubt would have changed.' During the past year the question of markets had not troubled them, as the Imperial Government had purchased the output of butter and cheese. It was rather regrettable that such long delays took place in fte completion of negotiations. These were commenced in July, lE>l7, and were not completed till February, 1918. This was due to no lack on the part of the producer, and steps had been taken this year to try and prevent a delay that last year had financially emlarassed factories, so much so that it had become incumbent upon the Government here to make a temporary advance so that some factories could make payi ments to suppliers. He believed that while the war lasted and for some years after the Imperial Government would purchase our produce, and that as the results of representations made to the Prime Minister before his departure for England they would ere long have a settled price, as they were almost daily in receipt of cables. In connection with the disposal of butter last season, during the course of negotiations they found that the position of the New Zealand producer had been embarassed by the fact that Australia had completed a sale very much below what we were asking and below the value we placed on our output. There was no doubt that sale affected the price received. It was not possible to remedy it, but after consideration it was decided to send a delegation to Australia to interchange ideas and try to bring them into line 'with New Zealand. Messrs Agar, Brash and the Chairman accordingly were sent across, and for the first time in the history of the dairy industry in New Zealand, met Australian dairymen , in conference on such an important question. They were given a cordial welcome by the Federal Butter Committee, a body of recognised authority with powers not possessed by any body in New Zealand and aEter a strenuous conference lasting over two days they induced the Australians to ask 175s per cwt. for the coming season, an increase of 245, a equivalent to per lb, and seeing that when the conference opened the Australians expressed the opinion that their producers were quite satisfied with 151s and were prepared to sell at the same price this season. They had good reason to be satisfied with the result of the mission. A general conference in Wellington fixed the price that New Zealand was to ask at 1965. That was cabled to Australia, and an endeavour made to bring them into line, but only slicjnt success was met with. Australia having made a firm offer to sell at 180s. Last season New Zealand had agreed to sell at 1575, with 50 per cent participation in profits. There was a good deal of discussion as to what that was w r *th, and many and varied opinions were expressed, the majority thinking there was very little prospects of any. Latest information led him to suppose there would be a good deal. Australia had settled their extra profit as a basis of 19s, and, allowing for the p-itra price received by New Zealand at the start, as compared with Australia, he thought there was a prospect of receiving an additional 18s, or about 2d per lb so he thought they should feel satisfied. Though during the past two seasons their produce had been sold to the Imperial Government, the position regarding shipping had not improved. The whole of the refrigerated shipping was yttdar tU watrel of the Imperial JfiOV-1

eminent, and there was an increased quantity of butter and cheese in store at the end of last season. The position this season became acute as stores were full, and steps were taken to enlarge tlie accommodation. Fortunately in some districts ample accommodation had been provided and in others it had been warmly taken up. He did not think there would be any dearth of accommodation during the coming season if last season's produce were cleared out before the middle of November. The conditions regarding labor at factories was becoming more acute. Men were more difficult to get, and had to be paid a higher wage, and in many cases were not as satisfactory as previously. While they found that due regard had been made to the higher cost" of living in connection with the wages of assistants and ordinary factory hands, he thought that the salaries of managers had not been adequately increased during the past three years, and consideration should be given to the fact that the cost of living had gone up with them also. They did Mot want to see the managers form a union, as they looked upon managers as part of the dairy companies. In the Waikato recently he had discovered a wide feeling of interest in connection with the dairying industry, and | at a meeting attended by 500 some most sensational statements had been by Mr Goodfellow regarding dried milk. These had electrified his hearers, 'and had caused a feeling of unrest and a desirfe to obtain greater information. He hoped it would be possible at the conference to obtain fairly accurate and reliable information on the matter, as it promised very large returns, far and above anything ever heard of, and he trusted that the expectations of those factories who manufactured dried milk Would be borne out.

Rearding the balance sheet, he stated that the balance sheet was the best that had ever been submitted. The bonuses had increased, and the profits had also increased, showing a net profit for the year of over £BOOO. The business was a safe one, and though the margin of profit was a small one, the volume of business enabled such profits i to be shown, and this spoke well for the conduct o*f the business. The Association had war bonds to the extent of£looo and had given authority to take up another £2OOO, and if the profits continued at the same rates they would invest a large sum in war bonds, and as they wished to help the Government all they could in the present struggle, a sum of £IOO had also been voted to the ?.M.C.A., whose good work they recognised. Membership had largely increased and there were very few companies in their district that did not belong to the Association, and as a result the subscriptions had increased by £4OO. The Chairman then formally moved the adoption of the report and balance sheet. Mr Jacob Marx (Mangatoki) seconded. THE DISCUSSION. There was consi4erable discussion. In reply to Mr J. S. Connett (Bell Block) the Chairman stated that the business done totalled £250,000. Mr Lee (Te Kuiti) said that all recognised the ability of factory managers and that they Bhould be adequately paid. It was to the credit of the Auckland Provincial Managers' Association that they had decided to take no part in the formation of an industrial union-

Mr Donaldson (Opotiki) asked whether factories that sold locally could share in the profit received for the sale of export butter. The Chairman stated that no equalisation fund had been established. When butter was sold to the Imperial Government at 157s local factories appeared to have an advantage of y 2 d per lb over export factories, and before an equalisation fund could be established it would be necessary to put that Jd into' the pool, and this they declined to do. Mr Prouse (Levin) questioned this statement. He said that as representative of the Wellington suppliers they were prepared to do so, but the suggestion was not accepted by the Butter Committee,

Mr Nathan stated that it was stated that local supply factories would have to pay storage and other charges during the winter months as a set off to the extra }d. If the amount had been pooled all the factories should share this. Mr Brecow considered the Government should be asked to established an equalisation fund from the consolidated revenue.

Mr J. B. Marx (Mangatoki) considered this was the result of the Government attempting to fix an artificial price to "supply the local market. Those who supplied the local market should get their share of any additional profit. Mr iPowdrell suggested that the matter be deferred to the Butter CommitMr J. B. Gow (Opotibi) said that it was felt last year that an injustice had been placed in the dairy industry by % levying of the butter fat levy. _ This year, however, a more heinous injustice had been placed on a small section. Seeing that the Government had made the jnisU&ke of not taking any extra pay out into consideration, they should remedy this injustice by making up the amount to local factories out of consolidated revenue.

Mr Buchanan (Thames Valley) asked the Chairman to outline the regulations for the sale of butter, holding that this included the setting up of an equalisation fund to deal with local supplies.

The Chairman stated that it was impossible to set up an equalisation fund unless all the local selling factories had been prepared to pool the extra price they received. They could not be forced to do this.

In reply to Mr Breton, the Chairman stated that he had no suggestion to' make as to how to adjust the difference that had arisen between local and export butter. There was no possibility of making one satisfactory to both parties. He agreed that there was no hope of paying it out of the consolidated funds. It was undoubtedly a gross injustice that a portion of the community should have to provide cheap butter for the whole of the community, but the Government had the matter entirely in. its hands. After further discussion Mr Prouse (■Levin) stated that a resolution had been passed giving the Dominion Com.mittee power to sell all the butter of the Dominion—not only export, but also local. He had made inquiry and found that the Dominion Committee had done nothing in regard to local butter. Heaftenvards found th&t a resolution hadbeen gazetted that export butter was to have the Whole of aJty carefully gone into the qu£ and found out that there was on\sjta advantage of Is lOd in favoui»"''fT local butter after paying all and they were prepared to place \ a\ into Ata'j&ggNgffigtifc* IIW. ?£fl ft

any profits accruing to export butter. Tliey were prepared to act fairly and asked the Government to put this into operation. Mr Massey said tlhat he agreed to this, and would have regulations prepared, but nothing was done. On behalf of factories supplying the Wellington market they were agreeable to have a fair, reasonable and equitable disposition of any charges or profits that might be made, and he would not accept the statement that they would not agree to the matter. The matter was then held over for a meeting of the Butter Committee. The report and balance sheet was adopted. ELECTION OF DIRECTORS. I , The Chaiirman stated that this year they had adopted the principal of one director from each district retiring and accordingly the retiring directors were Messrs A. Morton (Taranaki), Thos. Bassett (Auckland) and Wm. Fisher (Wellington). The two directors appointed by the executive to bring the "number up to nine in accordonee with tesolution, Messrs J. B. Gow (Auckland) ■Bad W. Jewell (Rangiotu), would also retire. The first four were re-elected unopposed. For the last named seat Mr Brown (Kuku), was declared elected. The Chairman's honorarium was increased from £IOO to £l5O, and the director's honorarium was fixed at the same as last year. Mr C. D. Morpeth was re-appointed auditor. THE LONDON AGENT. The [President referred to the valuable work done by their agent in England (Mr R. Ellison), and stated that he had asked the Premier wtoen in England to make the utmost use of Mi- Ellison's services and endeavour to obtain his official recognition by the Food Controller. Mr. J. B. Murdoch (Joll's) considered it would be a good thing for the producers if Mr Ellison could visit New Zealand and toe present at the next annual conference. The Chairman stated that it was At this time that negotiations were in progress for the sale of the output, and jt was necessary that a representative should be in London. It might be advisable to send some one else to London to enable Mr Ellison to come to New Zealand, for Ihis experiences would prove of great benefit. After the Imperial Government had finished purchasing their produce and they had a free market, the question of marketing would Tiave to be taken up and pushed to a satisfactory conclusion. Mr P. Nathan considered the sale of New Zealand produce would be considerably .expedited if it? was carried in by the National Dairy Association direct through Mr Ellison and the Trade Commissioner and a committee set up with Ihim instead of through the New Zealand Government.

ALTERATION OF ELECTION. Mr J. S. Cwmett (Bell Block) moved the following notice of motion:—"That the following new article be made: 23a. The three directors to retire annually shall he one each from the following districts—Auckland, Taranaki, Wellington. At every election members shall have a right to vote only in respect of the vacancy for their own district, and every election shall be conducted in the following manner: On April 1 in each year every member shall be invited to nominate a consenting candidate for tie • position becoming vacant, every nomination to be posted to the secretary before April 26. On May 1 the secretary Bhall prepare and send to every member a ballot paper containing the names of the candidates so nominated or the respective districts, and every member ■Aftll, after recording his vote thereon, return such ballot paper to the secretary not later than June 1. The Tesult of such voting shall be declared at the annual meeting." . . The Chairman said that an opinion would have to be obtained as to the legality of the proposal. It might be reckoned illegal on the ground that it disfranchised some of the members. Mr iP. Nathan suggested that voting should be on the following basis:—Factories with an annual subscription of £7, one vote; between £7 and £l4, two votes; between £ls and £2O, three votes; between £2l and £2B, four votes; over £2B, five votes. Mr J. S. Connett (Bell Block) said that ho understood the legal aspect would have been gone into. The alteration was brought forward with the object of effecting an improvement in the working of the Association. Hethought it would tend to give members at a distance a greater interest in the Association. The exeentivo had already adopted one motion and members should be directly responsible to the districts tliey represented, and men of any part*--, ■cular district were better fitted to re- 1 present that district than men perhaps who were quite unknown to them. Ingtancing the election that day, he, stated that he did not know one of themen nominated, and so had not exercised his vote. The present method, therefore, was not in the best interests .of the Association. A number of com-; paniea were not represented at the con•ference, and so ware debarred from voting, though perhaps they took a more' -than passing interest in the affairs off the Association. Mr Baker (Papat&wa.) seconded. Mr Mars (Mangaitaki) considered that the resolution should provide for inercased voting power to the larger factories. Mr Powdrell (Kaupokonui) strongly opposed the principle of one company one vote. He considered that if this proposal were carried no man in SoutJh' Taranaki no matter how good he might he, would have a chance of being placed •on the directorate as,he would be outvoted by North Taranaki, where- the land, being good, there were numerous factories, whilst in South Taranaki there were four factories with turnovers between £200,000 and £250,000 each. This had been done in connection with the Bgmont Box Company. He did not introduce the matter from a spirit of parochial views. Mr Connett said he was prepared to accept this addition. Mr Powdrell said that he did not wish .jto see the big factories get the preponderance of votes, and would second the resolution if limited to five. This was agreed to and the resolution was carried, the 'basis being one vote for every '£7 of subscription paid. insurance. Mr Woodley, on behalf of lie Ncretea -Dairy Company, moved that the time has arrived when a Co-operative Insurance Company should be formed for the purpose of taking ovtr alldairy factory Several speakers saSi there was .no need to duplicate the machinery, as the tfT* vmdKtfliMa ttfti

Farmers' Mutuals now in existence, and the' resolution was withdrawn. FINANCE. The Chairman stated that' t&d position regarding pji's given by factories was more satisfactory. In response to the circular appeal 78 factories had increased their p.n's from £3OBO to £7OBO. Fifty new factories had given £2585; sixty-five did not respond and did not renew. The directors and staff had given promissory notes for £4OOO. A shareholder considered the staff should not be asked to do so. The Chairman remarked that the staff did so voluntarily, looking upon the business as their own. The secretary (Mr J. B. Harkness), I also spoke strongly on the subject.