THE DAIRY INDUSTRY.

Waikato Argus, Volume VI, Issue 434, 13 May 1899, Page 3

THE DAIRY INDUSTRY.

PDKBRIMU. A MEETING of milk suppliers in the Pukerimu district was held on Thursday morning to consido ■ the proposals of Mr Wesley Spragg as to the terms of supply for the coming season. Mr John Fisher being voted to the chair, said he would call on Mr Spragg to submit to the imeting his proposals. Mr Sprang said he had sent a circular to suppliers giving the conditions under which un extra payment was to be given. He was aware some of the suppliers pooh poohed the statement, and said it would not amount to anything, as the proposed bonus would never reacli small creameries. He was glad to say that some of this bonus does come to Pukerimu. The word bonus should never have been used in thia connection, it being a part payment. The amount of the extra payment due to this creamery is Jd of a Id per gallon of milk supplied. This brings the price up to 2sd per galloD of 36 milk or equal to 7 3-sths d per lb. for butter fat. 1 hese figures were taken from rough accounts, but would be a very close approximation. The other factories supplying a larger quantity of milk, sucli as Te Awamutu, would be entitled to an extra payment of a full farthing, bringing the price up to 3d per gallon. There waa an impresion amongst suppliers that 7A,d per lb. for butter fat was equivalent to 3d per gallon for milk. This was a false impression, the actual figures being 2835 pence per gallon. The mistake arose he supposed from suppliers calculating that it took 251 b of milk to make one pound of butter fat, whereas the quantity required is as nearly as possible 27fd lb. The next consideration is what are the prices to be for the coming season. These will be worked out on the lines as the prices paid for the season just closed and are as follows. For thoso creameries supplying under 3000 gallons of milk, 7£d per lb for butter-fat, 5000 gallons 7|d, 6000 gallons Bd, 9000 gallons The season being from September Ist to April 30th. The cost to me will not be a fraction more per gallon for this 9000 gallons than for the lesser quantities, the difference being saved in the manufacture. These prices at per gallon of milk are respectively 2-S3sd, 2.93 d, 3d and a bare fraction over 3T2d. The proposal to pay per lb for butter-fat instead of per galloa for milk of 3.6 quantity he considered a more satisfactory method. There is also the matter of testing. The Babcock test was the best that could be had for commercial purposes, although not minutely exact as a chemical analysis. He paid on the full rending of the Babcock test without any deduction whatever. The Babcoek system had been called in question by some, but after consulting the highest authorities in the subject he could not see where any improvement eould be made. He had all the glasses used tested which meant additional eost. The be3t proof he could offer of the accuracy of the testing'was that churn results equaled the butter-fat quality of the milk received. The complaint he had against the suppliers generally and the Pukerimu suppliers particularly was that a great deal bad been said on this subject, but those who talked did not avail themselves of his offer to inspect his books and words. Mr Gane said he was glad to learn that this question of testing was being ventilated. It had been stated at suppliers' meetings that the Babcock was as nearly as possible an accurate test. It is now stated by Mr Spragg that the instrument is a commercial test, and manufactured to represent approximate rather than analytical values, but calculated so close as to be entirely suitable for the object ; the full reading allows a small margin for waste. This accounts for the view generally held by that a limited reading of the test was in practice. With regard to the bonus, this term Mr Spragg admits to be a misnomer. It is satisfactory to find that the claim of the suppliers made iu the early part of the season had received consideration. There is do doubt but 3d per gallon is only a fair price for3'6 milk, and these added payments will in some cases reach that figure. He also asked would it not be possible to charge each creamery with its own expenses and thus enable a uniform price to be given for the butter-fat. There is an unfairness attending differential payments which suppliers think should not exist and which ought to be got rid of. Mr Spragg replied that it would not be easy to run the business on these lines. This was not the first time this suggestion had been made to him. It would involve such an increased system of accounts that he did not think it would be of any advantage, as the present system of working was in his opinion satisfactory, and in the matter of freights this would, of course, make a different rate for Upper and Lower Waikato, and after taking everything into, consideration he had finally abandoned the idea. Mr John Fisher said that the matter of testing had always been a difficulty. They ought to be paid full value of the butterfat as shown by analysis. They had been repeatedly told the Babcock test is the same as analysis ; in fact Mr Babcock claims this for his method. With regard to Mr Sprage's complaint that though invited to inspect his books and records, he had to state that as the Milk Suppliers' Uuion had then been formed he could only comply with thia invitation as a member of the Union, and had written to Mr Spragg mentioning the names of two gentlemen who with himself would go to Auckland for this purpose as delegates of the Union ; but in this capacity Mr Spragg objected to receive them,"and this hitch prevented the carrying out of the proposed inspection. Mr Spragg said with regard to the principle of uuion he was entirely in accord, but what he objected to was union that was based on arbitrary conditions. If the promoters had forwarded a copy of their rules for his consideration they should have come to a fair understanding. He believed that milk suppliers should have a union and would give his hearty support to a union based upon fair principles, he could work with delegates from such, and believed that many questions of business could be better disposed of in a consultation with delegates than with the entire body of suppliers. Mr Fieher said that at the formation of the union there was no idea of opposing Mr Spragg, all that was wanted was a better price for the product, and the union was formed for the purpose of attaining that end. They formulated rules and sent a copy of them to Mr Spragg, and he never suggested any alteration, but Bet himself in direct opposition to the movement by refusing to recognise the secretary. Mr Spragg said reference had been made to competition. He had no complaint to make against his competitors. He believed they had been misled. He held competition to be a good thing in any line of business. Mr R. Freeman asked where the glasses used for testing came from and were they acknowledged to be thoroughly accurate, and he was informed that they came from England and that a higher price had been paid to procure them absolutely trustworthy. Mr Spragg was willing to submit them to the inspection of Mr Ruddick, Government expert. Mr Gane said that as the meeting was held to confer with Mr Spragg, he would like to ask his opinion with regard to cooperation, and in what form it might be best introduced. Supposing that only two or three creameries were willing to pool their supply, would Mr Spragg be prepared to deal with the product. Mr Spragg replied that unless the whole district combined it would not be feasible, and he had no hope of the possibility of co-operation amongst Waikato suppliers, the idea being practically killed.

A vote of thanks to Mr Spragg for bis long and courteous interview and the usual vote to the chairman concluded the meeting. PATKUAN'i'I. Mr Spragg met the milk mpp iers here on Wednesday morning. Tiu-re woe only 12 snppli rs present, seve <l beimj unavoidably abseu'. '.'r nermann o°ou pied the chair. Mr Spragg told the meeting that thts supply of milk at Paterangi riming the season jmt closing had b«i n -i.ffici' nt to entitle the suppliers to an extra Jd per gallon for the season's supply, ami that tliD amount would be included ir. th.pavment for May. Mr Spragg then Ruid in future the Dairy Association would purchase butter-fat instead of milk arid the pi ice would be uniform throughout the season, the minimum being 7jd per lb at any factory, but where rhe aveng" weekly supply (including Sund'iy) reached 3000 jjallons or over 7f<l, 6000 gallons and over Bd, and 9000 gallons Bjd, milk to be tested by the Bibcock tester. Later on the meeting was informed that 251 b of milk of standard quality (30) would make rt :b of butter, ar.d 27flb a lb of butter-fat. Mr Spragg that was their offer for the next season He then asked if they had any complaints to make, upon which a long discussion ensued about the mode of testing. Several supp'iers were of opinion that the Babcock machine was not always reliable. Mr Spragu, however, informed them that the testing had been checked by the chinn, and as near as he could tell the quantity of commercial butter obtained waa 1111 b from •very 1001 b of butter-fat, and as 1121 b was about the average quantity obtainable he thought they were very near the mark.

Mr Finch reminded Mr Spragg that in his comparison with other factories he hail stated last spring that his prices were better than those paid at Taranaki c:eanierie3, and he then pr C'ldyd to quote from a letter juat reciived from Mr Wills, who is a supplier to the Crown Dairy, 2|d bring lowest pries paid during any month. Mr Spragg would, however not believe it. When the firm of Messrs Ambnry and English was mentioned,MrSprugg said his offer was better than theirs,and he did not jure if there was opposition—he would come cut on top. He further stated that if Me«srs Ambuiv and English atartid at Paterangi and half the presmt suppliers joined that firm he would still pay the same prices as though the whole quantity was supplied to him, Mr Spragg d d not ask f>r an expression of opinion. A. vote of thanks to Mr Spragg and another to the Chairman closed the meeting —(Own Correspondent]. HAMILTON. Mr Wesley Spragg met tho suppliers at the Hamilton creamery on Thursday afternoon. Fourteen gentlemen were present. On the proposition of Captain Runciman, seconded by Mr 1). Henry, MrJ.D Melville took the chair, and brirfly introduced Mr Spragg, who spoke for some considerable time, explaining the present seasou'n business and also the terms and conditions for the coming season. All those who supplied to the Hamilton creamery for the whole of thia season will be entitled to 3-16thsd per gallon additional payment on all milk supplied by them, and, if possible, such payment will be made at the same time as cheques are sent for the milk supplied during May, but if not, then at an early date. This additional payment will make the price average about 2 15-lGths d per gallon during the whole season. For the Beason just ending Hamilton would be entitled to 7|d per lb. for butter fat. At the conclusion of Mr Spragg's address, several questions were asked and all satisfactorily answered. Mr Yates proposed a very hearty vote of thanks to Mr Spragg, and expressed the wish that he would continue to conduct the business next season. The meeting c.included with a vote of thanks to the Chairman. Next season will commence on August Ist. OHAUPO. Mr Spragg met the Oliaupo supplisrs in Teddy's Hall at 3 o'clock on Wednesday last. Over 20 were present, some being suppliers ftom other factories. Mr H. Roche was voted to the chair. Mr Spragg said he came among them to talk business and to give any information on the milk question that lay in his power. There was an under current of feeling against him in the district, and he did not know why, as he always tried to treat the suppliers justly and on business lines, and any contracts or promises he made he would strictly adhere to. The bonus, he said, would be paid this month, which would amount to one eight of a penny more on all the milk supplied, making the price paid for butter-fat 7 3-sth d, which is equal to 2Jd for milk for the past season. Mr Spragg then stated the terms for the coming season (as already printed).