DAIRY PRODUCERS.

Taranaki Daily News, 23 June 1921, Page 6

DAIRY PRODUCERS.

ANNUAL MEETING OF NATIONAL | ASSOCIATION. IMPORTANT SUBJECTS DISCUSSED. QUESTION OF SHIPPING. i (From Gur Special Reporter.) Palmerston North, June 21. The twenty-seventh annual meeting of the National Dairy Association of New Zealand was held in the Manawatu A. and P. Association’s rooms to-day. Mr. A. Morton (the president) was in the chair, and there was an attendance of over 200 delegates. The following Taranaki factories were represented: Awatuna, Alton, Bell Block, Cardiff, Cape Egmont, Eltham, Hawera, Joll, Kaponga, Kaupokonui, J£akaramea, Lcpperton, Lowgarth Mangorei, Manga* toki, Midhirst, Maketawa, Moa Farmers, Manutahi, Ngaire, Nonnanby, Omata, Oaonui, Okato, Puniho, Pihama, Rahotu, Stratford, Tarata and Tariki. In moving the adoption of the report and balance-sheet, the president said that they were meeting under very different conditions than previously, in that they had an open market for their produce and were free to make the best arrangements for its disposal at the best prices offering. He had no doubt that present-day directors would be able to accommodate themselves to this position with the skill of their predecessors. Climatic conditions had militated very largely during the past months against any increase in the dairy output, and in many cases there had been a decrease. Fortunately, these conditions had not been universal, and notably in the northern part of the Auckland district they had had a very fine season. He forecasted that there would soon be increased production in dairying on account of the number of farmers who were taking up this industry. During the past season they had made a contract with the Imperial Supplies Department for the sale of their butter, fortunately at a good price. As a result of the price secured for butter and the fall in cheese prices, a number of factories had changed from cheesemaking to butter, so that its production had been unusually high, and placed butter in the forefront .of these two primary products of the Dominion. NG STABLE MARKET YET. There were also, in ‘connection with the fall in the values of cheese, some other matters deserving attention. Last year he had suggested that owing to the fall in meat values cheese prices would bo affected, and this had coine to pass. There ,was a connection between the two lines that could not be explained in any other way. The purchasing power of their overseas customers had dropped also, and without doubt the prices of their products would be affected by the conditions, social and economic, in Bri- , tain. They could look for no assurance that they would have a stable market for some time to come. There.had also been a considerable fall in the by-pro-ducts of the industry, to such an extent that their continuance had been a matter for grave consideration. This was, he believed, only temporarj', but there was bound to be uncertainty in the mind of the dairy farmer regarding the making of butter, cheese, and their by-products. • Delay in connection with shipping had resulted, in some cases, in an improvement in the quality of cheese, but in many instances, on account of produce being stoved in unsuitable buildings, consignments had not only deteriorated in quality but there had also been a shrinkage in weight. He hoped as a result of the improved shipping and storage conditions, they Avould have a hotter article to ship next season. Every attempt had been made to maintain and improve the standard of grading. He gave a recent statement that there had been a falling-off in quality an emphatic denial. In th? circumstances it was a credit to them that they had been able to maintain the high standard attained in previous years. . With regard to the local butter market, they had had some trouble, blit they had now made arrangements whereby the hotter producer eould get the full export value of his butter on the l<wal market. Fl N A NO [AL DIF F ICULTIES. During the past year the financial position had gone from bad to worse. He referred to the attitude of various banks in refusing advances to dairy companies, and said that the conditions imposed by the banking institutions were very severe. They found that right throughout the Dominion there was financial stringency that made it exceedingly difficult for them to conduct their businesses as they had been in the habit of doing. Its effect had been that primary products had fallen almost to the pre-war values. In connection with their export trade, it would have been •rood business if dairy companies had arranged at the beginning of the season for the disposal of their surplus goods. FREIGHT.,!. The president referred to freights, which he said had become a very severe burden on the exporting producer. He hoped that the meat and dairy companies would make contracts with shipping companies that would become coterminous. so that both branches of the primary industry would be able to give mutual assistance in the matter of securing better shipping arrangements in future. At the previous annual meeting a resolution was carried supporting the principle of a farmers’ line of steamers, Since then numerous conferences of producers had been held, and the Government had said that it would give such a scheme every assistance. Within a few months definite steps would be taken to put the scheme on a sound and proper basis with good results for all concerned. (Hear, hear.) The Government had withdrawn the concession exempting dairy companies from income tax owing to the difficult financial position. To those companies whose finance was not exceedingly good this taxation would prove very irksome. It was an unfortunate move, as there was never greater need to stabilise the financial position of the dairy companies than at the present time. Increases in frci°hts by rail imposed during the past twelve months had more than doubled the pre-war rates. THE OUTLOOK. Turning to the future, Mr. Morion said that there were circumstances in connection with both butter and. cheese that made it almost impossible to forecast which would be the batter proposition during next season. If cheese became a less payable proposition, all

cheese factories would turn to butter, with the result that competition in butter would be keener than ever. The erection of a tariff wall by the United States of America against Canadian cheese would have the effect of putting that commodity in serious competition with the New Zealand article in Great Britain. However, it might be that Canada would turn to the production of butter. He hoped that before the opening of the new season there would bo. some clearer indication ol which product would be the better paying commodity. The bulk of the cheese factories were able by their dual plants to turn at will to the production of either butter or cheese. Their position on the English market was a very different one from that prevailing ten years ago. Then the amount of New Zealand produce was so small that it did not affect the market, but in the near future he believed that the New Zealand ouput would have, a determining effect on the English market. It was therefore necessary to increase their individual production as much as possible by the greater use of manures, by the employment of the best methods of farming, and by studying the best testing methods for their cows. With increased production would come a better financial position, not only for the individual, but for the companies also. Very little had been done in the direction of advertising our products at Home, and he intended later to ask Mr. Brash (secretary of the association) to explain this matter to them. A good advertising campaign should be carried out. The South Island, which had already taken the matter up, was anxious for the co-operation of the North Island in this direction. The balancesheet did not show such a good position as the previous one did, but notwithstanding that the association was in a strong position and able to stand up against any financiaf troubles with which it was likely to be faced. THE DISCUSSIGN. Mr. J. Brown (Maketawa) seconded. Mr. Gibson (Rahotu) complained that the balance-sheet was issued too late to enable factories to fully discuss it before the meeting. The chairman stated that the financial year closed on April 30, and the only way to overcome the difficulty would be to have the year close on Starch 31. Sir. Harkness (secretary of the association) did not consider it would be advisable to close the year any earlier. It would be preferable to have the year end a month later. Mr. J. Marx (Mangatoki), touching on shipping, considred that at least £l,000,000 had been,lost during the year owing to the delay in shipping, and this would have paid the cost of one or two liners. He also referred to the difficulty that would be experienced in financing during the early months of the new season, and considered that joint action was necessary to arrange this. At least £5,000,000 or £6,000,000 would be required before any appreciable return would be received from the produce. Mr. SL Nathan asked whether the question of return freights had been considered and he thought they should have consulted an exporter on this. The chairman said that the matter was beyond the association now, being in the hands of a committee of producers. They recognised that it was necessary to have the importer in with them, but there was the question of the levy, and if they placed a levy on the importer he would at once hand it on to the consumer, who would say that the cost of living had been increased to provide ships for the producer. , Mr. Nathan said that he meant that they should get one of the exporters interested in the sale of the produce on their committee. Most of these were also large importers, and if they were interested, all things being equal, they could give the producers’ ships preference over other liners. Mr. Gibson '(Rahotu) expressed disappointment that more about shipipng had not appeared in the report for the benefit of factories unable to attend the meeting. The report and balance-sheet was then adopted. ELECTION OF DIRECTORS. The returning officer announced the result of the election of directors as follows:- -Taranaki, Mr. A. Morton, reelected unopposed; Auckland. Mr. Thos. Bassett, re-elected unopposed; Wellington, Mr. J. G. Brechin (Pahiatua), who was elected out of five candidates, including the retiring director, Mr. W. A vote of thanks and appreciation was accorded Mr. W. Fisher, who had been a director since 1966.

The president explained the position in regard to filling tlw vacancy caused by the death of Mr. W. D. Powdrell, and stated that the directors had decided to ask Taranaki members to recommend a man for appointment, who would retire next year. j* Mr.* T. A. Bridge (chairman "f the Kaupokonui Dairy Co.) was mmubated, bill declined to stand, nominating Mr. J. B. Murdoch (Joll),- who was duly recdmmemled. Mr. C. D. Morpeth was re-elected auditor. Later in the meeting, in accordance with notice of motion, a resolution was passed providing for the directorate being increased to permit of the election of a representative from Hawke’s Bay. QU EST lON OF RECON ST RL CT lON. in accordance with notice of motion, Mr. McFarlane (Riverbank) moved in the direction of reconstructing the National Dairy Association by the formation of a new limited company, limited by-shares. At present, he pointed out, a* dairv company was only a member of the association by payment of subscription. and by ceasing 10-pay subscription a companx ceased to be a member He stressed the need of loyalty to the association. At present companies were contributing year after year, but had no asset in the association, except in the event of winding up; in which case those companies who had only recently joined would be in the same position as those that had borne the burden i for years. He did not think there could be any need for calling up further share capital, but the subscriptions would be credited as shares. This would strengthen the financial position of the association. Mr. Harding (United) seconded. In reply to a question, the chairman said that if the association was wound up they could not compel any dairy company to put its share of the disbursement into shares the new company. % Air. J. Marx considered the present time an inopportune one. The chairman said that it had its advantages and disadvantages weighingone against the other. He questioned whether it would be in the best interests of the industry. | The Hon. J. B. Gow (Gpotiki) moved 'as an amendment, that the matter be 1 deferred till next, meeting.

Mr. .1. 11. Corrigan (Hawera) seconded, and suggested that the words “a report to be submitted by the executive’’ be added. This was accepted. After a little further discussion the amendment was carried. MOISTURE CONTENT. In accordance with notice of motion, Mr. MacFarlane (Riverbank) moved that in the opinion of this meeting, it would be a decided advantage to directors and managers, of all dairy companies if the moisture content of expoYt butter was put on the grade notes by the produce graders. He pointed out the serious loss factories suffered if the butter was manufactured too dry. Mr. Whitmore Searle seconded. Air. Singleton, acting Dairy Commissioner, said that it was the duty of the department to do sufficient testing to protect the Dominion and see that the regulations regarding the moisture content were carried out. He did not think any useful purpose would be served, and to undertake the testing of every churning each day would entail a lot of additional work. The motion was lost.