DAIRY RATIONALISATION

Evening Star, Issue 22685, 26 June 1937, Page 3

DAIRY RATIONALISATION

WAITAKI COMPANY ABSORBED FIRST STEP TOWARDS AMALGAMATION Within a year a complete rationalisation of the dairy industry in Otago should be effected. Tho first move towards this has now been achieved, after protracted negotiations, with the sale of the Waitaki Dairy Company, a proprietary company which commenced business in Oamaru in 1911 and then established factories in Dunedin and Invercargill, to the Taieri and Peninsula Milk Supply Company and the Co-operative • Dairy Company of Otago. . . The Dunedin factory of tho Waitaki Dairy Company will cease business on June 30. All suppliers to that company will then have tho option of sending their cream supplies to any of the Dunedin or Oamaru factories operated by the Taieri and Peninsula Company or to tho Co-operative Dairy Company of Otago. Although tho Waitaki Company has now been sold, about three months will he occupied in finally disposing of the business. The progress which has been achieved with the absorption of the Waitaki Company represents a substantial step forward, and continued efforts are to be made towards the final goal. At the present time a combined committee of the Taieri and Peninsula Company and tho Co-opera-tive Dairy Company of Otago is investigating the possibility of an amalgamation which will comprise tho whole of the business of the two oom : panics as well as that of the Waitaki Company. The sale of the company is governed by the regulations covering the amalgamation of dairy companies and the zoning of supplies. The principal requirements affecting the sale of the Waitaki Company include provision that from July 1, 1937, the company cannot receive cream, and that those who have been supplying it at any time during the 12 months ending Juno 30, 1937, must, for a period of three years from July 1, either supply the Taieri and Peninsula Company or the Co-operative Dairy Company of Otago. Any other butter factory is specifically barred from accepting cream from persons who were previously supplying the Waitaki Company.