THE WAIKATO DAIRY FACTORIES.

Waikato Times, Volume XXIX, Issue 2341, 12 July 1887, Page 2

THE WAIKATO DAIRY FACTORIES.

■ « TO THE EDITOR. Sir, —As it appears that tho- freezing company is negotiating with the various dairy companies in Waikato and elsewhere with a view to acquiring on some terms or other the cheese factories which have been instituted amongst us, I take the liberty, with your kind permission, to call particular attention to this new move through the columns of your journal. There is always more danger from drifting into a scheme than there is from going into it with one’s eyes open, and therefore I take it on myself to utter a timely note of warning, which, if uncalled for, will prove harmless, but, if the reverse, will at least remove any possibility of one excusing a mistake on the plea of ignorance. Before our dairy companies commit themselves I would like to invite consideration to three propositions: Ist, What has been the result of the past operations of the freezing company ? 2nd, what object have they in view by this new move ? and, 3rd, if the freezing company should succeed in getting hold of our factories what will bo the probable result? Now, Sir, with regard to tho first. I think there is a pretty unanimous opinion among farmers that it has not wrought us any good, but quite the reverse. The plausibilities of managing directors and butter managers to the contrary notwithstanding, instead of relieving the colony of its surplus produce by export, as was anticipated, the company has fastened on the purely local market, and greatly accelerated downward prices. Instead of being merchants they have become hucksters, and whilst having the advantage of huge capital, a brilliant staff, and extensive plant, the legitimate business has dwindled almost out of sight and peddling butter and beef amongst the shopkeepers has become the one branch by which they can infuse a little life into the concern. Now for number two. The answer is monopoly, the original object of the company, viz, Freezing, and Export, has proved too much for them,(on the world's market they have found their match and cannot get on, the local market will be different and can bo controlled by monopoly. The result of their succeeding to charm the factory companies will be disastrous I anticipate to dairymen, we have grown accustomed to pay one middleman in the past,; F.C. has pushed in and becomes a second middleman, not being able to raise prices by a superior article, a margin of profit has been found by forcing prices down and skinning the butter maker who has to pay two agents. If the factories are acquired the skinning can he carried on more thoroughly for F.C. will be master of the situation and bo able to fix prices of milk itself, and wc shall become mere cowboys to do the bidding of our master. Without further occupying your space, I may express the hope that factory companies will be true to themselves. At present the factory is worked in the interest of the milkman, and if there is any profit they reap it; let the F.C. get them and we shall have a different tale, The F.C. is not a philanthropic institution, but for the purpose of money making and will of course be worked accordingly. Once the factories pass out of our hands we shall never replace them and this the F.C. knows. Severe competition wo find sharp enough, hut give us monopoly and we may as well quit. We read and hear of “Rings” and the consequences ; do nut let us assist in funning a cheese and butter ring for certainly wo shall find ourselves on the outside of it.—l am, yours truly, Milkman.