DISPOSAL OF DAIRY PRODUCE.

Taranaki Daily News, 5 August 1921, Page 5

DISPOSAL OF DAIRY PRODUCE.

SuILE OR CONSIGNMENT ? DISCUSSED BY HAWERA DAIRY r- i The question of the disposal of tb< i season’s output of cheese formed they subject of some discussion at the ain nual meeting of the Hawera Dairy yesterday. The. chairman (Mr. J. jRu (3orr gan) stated that the position wa# a Very difficult one, and he would like some indication from shareholders l as to whether the directors shoula r) sell their output. I The chairmaii said the directors had < received a flrm offer from a firm of ll%d f.o.b. fur 2000 tons cf their cheese, subject oo a possible further l-8d with, in forty-eight hours. This offer wa-i from a strong Biitiali firm, hut as it was confidential he could not (iivulgo the name. Another offer bad come in during the meeting of 11 3-Bd. Th« position was a difficult one os there was no doubt the market at Home wan a little excited. Mr. Elieon had cabled! that cheese would probably l6o® before Christmas. The offer they hadj received meant 128 s 3d landed a# Home, which w’as a good bit be’ow IflOs. i Canadian cheese at present led the mai>» ket at 1445. The offer they bad receive ed would eualle them to pay out as near as possible 2s 5d per pound butter- , fat. Voices: Grab it! Tbe chairman said it eexned ery satisfactory, and he felt inclined, a’ligd d received it, to take it, but 'they would, be “whipping the cat” if i-.neese went to IfKis and the directors htd sold out' equal to IciSs 3d. Voices:, Never! A shareholder considered that the main thing they had to consider woe the amount that would be advanced f.o.b. It was far better to accept a lower price and receive the money early in the season, knowing what they had to expect, than to wait perhaps eighteen months for the final payment, even if ft were a shilling or two more. The chairman pointed out that their final payment this year would be long* before Christmas, and they had the extra during the oomijig son in that the fre« zing stores at Pa« tea were empty, and the same «mdi J tions also applied at Moturoa. ?lore-* over, a new shipping contract was be** ing arranged to provide for a fortnightly service, or at least that the cool, stores should be cleared out every month.

Mr. Death said 'hat he bad seen a better offer in the Press. Tn the past no shareholder Lad discussed tlie attitude of the directors in connection with the marketing, and he felt they could have the matter, in their hands, believing they would do their best.

The rtairman said that a resolution could bo carried to that effect. He thought it only fair to place the offer before shareholders. They had adopted a policy of consignment, and only one year in fourteen had they gone away from that policy, having missed last year. Because they had missed it last year he would not be prepared to admit that they must sell this year, because of the drought in Cannda. England, and the Cont’nent, and the reported shortage of cheese everywhere. If the shareholder? suggested to the directors that they should consign on open consignment, it would give them confidence, as he was sure every one on the directorate wished to do his best. The chairman said that no offer had .been received from the Imperial Government. Mr. Paterson moved that it be a recommendation to the directors to soil the output if they get a good offer. Mr. Haseltine seconded. Mr. Batten moved as an amendment that the disposal of the output be left to the directors. Mr. Death seconded the amendment, which was carried. Mr. George then moved an. amendment to provide that the directors should sell if they obtained a price equal to a pay-out of 2s 6d butter fat. The chairman, in reply to questions, stated that they obtained information from time to time that enabled them to gauge the position. Last year they were unable to obtain offers in writing/ but this year they had received offers in writing. The offer at 1 IJd was only open till G p.m. that evening, and was from a firm that required 2000 tons and wanted to buy it without going round to several factories.

The amendment was then put and lost, the effect being that the matter of disposal is left in the hands of the directors.