THE BIG COMPANY

Waikato Times, Volume 121, Issue 20276, 19 August 1937, Page 14

THE BIG COMPANY

REVIEW BY MANAGER

WORLD'S RECORD PRODUCTION. OUTPUT REACHES 69,757 TONS. IMPORTANCE OF QUALITY. “ The season under review has been much In keeping with the two preceding seasons on account of the changes in control which have been applied to the industry due to legislation, and unfortunately from the managerial point of view these changes have tended to increase rather than decrease responsibilities," said Mr. C. J. Parlane, the general manager of the New Zealand Co-operative Dairy Company, Limited, at the annual meeting of supplier-shareholders to-day. Tie said that from a production point of view, owing to favourable weather conditions plus a substantial increase in the number of suppliers, the company had experienced a very successful season indeed, as evidenced by tlm large increase in the quantity of tile various products manufactured. Thi output reached the gigantic total of 69,757 tons, which he thought it could be safely said was a world's record fos a farmer owned and controlled dairying concern. In butter manufacture the Waharoa factory again had the largest output with 6257 tons, To Awamutu factory being in second pos tion with 5165 tons, whilst in the oheese department Manawaru had the largest output with 1059 tons. Payments For Produce. The payment for finest quality butterfat for butter-making, including the cost of cartage but not including substantial trading rebates, was is 2.0319 d per lb., whilst the average over all grades, also including cartage, was Is i.9262d, the payment to direct delivery suppliers being Is 2.1416 d The average deferred payment which was made to shareholding suppliers In the butter department at the end of July was 1.6772 d. The payment to suppliers to the company’s cheese groups varied according to local conditions, the average over all factories excluding town milk sales, being Is 3.0348 d. The suppliers to the company's casein department received an advance payment of lid per lb. during the season and a ilnal payment at the end of July of 1.3321 d. The company’s milkpowder factories and condensery also experienced a very successful season, more particularly when allowance was made for the heavy increase in manufacturing costs that had to lie met due to recent Government legislation. However, the fTgurcs in regard to these departments had been fully explained to the suppliers at their’annual meetings which were held recently. The total amount of the Appropriation Account which was disbursed at the end of July reached the huge total of £7-57,337. Mr Parlane said the payments that, had been made by his company had received quite a lot of attention from some of their competitors since the figures were published, which he thought could be accepted as indicating that the competitors concerned were now feeling the strain of corapeytion. Feed Flavour Problem. In the matter of quality, Mr. Parlane said that in the early part of the season feed flavours had been much in j evidence and caused the grading down of quite a substantial quantity of ore am that was otherwise delivered to the company’s factories in good condition. Tie said this problem would likely remain with them for a very long time unless the invesjjgations that were being undertaken by the Scientific and Dairy Research -Department in collaboration with officers of the Dairy Division resulted In a remedy being made available to dairyfarmers. lie said this was a very important matter Indeed, and one that should he concentrated on by the departments concerned.

Unfortunately they still had with them the supplier who failed to appreciate the necessity for keeping his milking shed, plant and utensils in a thoroughly clean condition, and he said that, In his opinion, in the light of present day knowledge, there was no reason at all for such a state of affairs to exist. His company had, for some years past, spent considerable sums of money in employing dairyfarm instructors, whilst they had also been prepared to advance money at lowrates of interest and with easy terms of repayment for the purpose of either putting in water supplies or purchasing sterilising equipment. Therefore,

there was no excuse at all for any supplier to his company producing cream under unclean conditions. In consequence, if such cream was graded down, then the suppliers concerned had only themselves to blame.

Mr. Parlane said it was remarkable how few suppliers had provided themselves with some means of protecting their cream from the sun while waiting for the carrier, and pointed out that the exposure of either milk or

cream to the sun for even a short period was very detrimental to its quality. He said that, as suitable cream stands were not costly, there was no reason for the present state of affairs to continue, and further that it was unfair to carriers to expect them to lift cans filled with cream from the roadside to the lorries when the erection of a suitable stand would overcome this difficulty. Importance of Cooling. He said that the cooling of milk and oream was also very important, for the reason that reducing the temperature was of material assistance in preventing the development of undesirable bacteria. Tie said he was aware that many dairyfarmers fully appreciated this fact, and in consequence, it was somewhat surprising to note that even where cream bad been cooled immediately it was separated, it was then put out on the roadside exposed to the sun whilst waiting for the carrier.

on the farm before being tilled with cream. They had up-to-date mechanical canwashers installed In each of their factories, and whilst these made a reasonably good Job of the cans, the fact that they had to be transported back to the farm in the majority of cases by lorry over dusty roads necessitated their being thoroughly scrubbed and sterilised again before being used. Mr. Parlane said that throughout the year under review his company had spent a very large sum of money in installing the latest plant in order that their factories would be kept in the forefront of efficiency, but notwithstanding Ibis, it was simply impossible to produce a high grade butter from a raw material that was not up to the required standard. System and Qraalng. Mr. Parlane said that he hoped when the conditions under which the butter and cheese was to be purchased during this current season were announced, that the Government would have seen lit to amend its policy of purchasing on what might be called a ‘split grade’ system, for Hie reason that this was definitely unfair to a very large section of the dairy producers of the Dominion inasmuch as it was practically an impossibility to produce in some areas either butter or cheese that in the opinion of the Government graders was entitled to a grade of 9 4 points or o'er, yet this product would realise on the -United Kingdom market a price equal to a 91 point product. The Government had now had 12 months’ experience in connection with the marketing of produce in the United Kingdom, and should by this time have satisfied itself that there was no price difference available in the United Kingdom as between a 93 and a 9-1 point product, whilst it could also satisfy itself as to the impossibility of manufacturing in certain areas a butter or cheese that would be awarded high grading points, by calling for reports from its own instructors. If these were in the direction of proving his contention, as lie firmly believed they would be, then one might well ask why continue to penalise the farmers coni' e rn oil.