DAIRY FACTORY FOR FOXTON

Horowhenua Chronicle, 17 June 1929, Page 7

DAIRY FACTORY FOR FOXTON

PUBLIC MEETING FAVOURS PEOPOSAL.

A public mooting to discuss a proposal to establish a dairy factory in Foxton was held last week. Despite the inclement weather, there was rui ateiulanee of 20 present. , •The Mayor presided and regretted ♦■hat the weather conditions had precluded many who were interested in the projpdsai from attending. For some years past, he said, it had been "thought that Foxton and the immediate district should be served by a dairy factory. In this connection Foxton was one of the few town* with--0 a factory. In his opinion there was sufficient land which, under scientific treatment, could be converted into rood grazing laud for dairying purposes, apart from the better class land. The nearest factories were at Shannon, Levin and Oroua Downs A local factory would save haulage which would benefit suppliers. When the agitation for a local dairy was afloat fwo years ago it had created a good deal of interest among small farmers ami those interested in the industry. Plans had been submitted at that time for a butter factory to deal with 1000 cows and a guarantee of from loOO.to 2000 cows ]j.\d boon m-aide. The proposal lyul fallen through owing to the principal party removing to the Argentine. In the Mayor’s opinion the time was now opportune to go on' with the proposal. It was for the meeting to decide what stops sliould be taken and To set, up a committee to canvass the district. The small herds of from 10 to 20 cows were just as important to cater for as the larger herds. Already ho had received a promise from one farmer of 400 cows and 100 cows from another if a factory is established. These promises were independent of smaller numbers. Another point to be considered was whether butter or cheese should be manufactured.

At the invitation of the chairman Mr Gotz (N.Z.L. aiul AI. Dairy Department) said his experience of the district would .justify him in saying that a choose factory would ho a paying proposition, rather than huttor. He. referred to i ompetitic n on the English market with butter from the Northern countries of Europe which, under .Danish instructors, were producing butter equal to Danish which could be put on tin; market with little cost compared with New Zealand. Cheese, in his opinion, would be more profitable than butter and would return more to the farmer. Tiro district was well served* with butter factories and competition was keen and there, was too much overlapping in haulage. Then' was not the same competition in cheese production.

Air F. Woods, a shareholder in the Shannon Co-operative Dairy Company, said he was satisfied rvith his connection with the Shannon Company which Avas well established and managed and returned a good “pay-out” to the farmers. This factory served the Moutoa district and any support for Foxton Avould, in his opinion, have to come from the northern mid. lie referred to the, overlapping of haulage owing to competition in the northern area Avliich cost handicapped suppliers. Shannon Avas able to pay out from one-penny to penny half-penny more than other factories in the district, due to economic haulage. Referring tc- •heese a - . butter Mr Woods said that was for the suppliers to decide. The by-product from a butter factory in the way of skim milk for the feeding of calves, pigs and pmltiy avps of importance, whereas Avhey Avas useless to the dairyman but, of course, had its value in other connections. He Avislu d the every success but did not think that suppliers to the Shannon factory would change over. In reply tc a question, the chairman said 3000 coaa-.s had been promised previously. Mr D. Christie said it Avould be necessary to canvass the district and get n definite guarantee. He felt confident that once a start Avas made the financial aspect could be met. The chairman said the share capital would need to bo £4OOO. If shareholders paid up 2s per share the balance could be paid off by deducting 4d per lb. on supplies. Other than shareholders Avould be paid id less than that 8

paid tc shareholders. There would be no difficulty in financing the proposal. He had assurance on that paint. Wi/i the share capital guaranteed thdVc Avould not be any difficulty re finance ami the shareholders’ liability would bo automatically liquidated. In reply to a question, the chairman stated that the construction of a chec.sc factory would be £IOOO less than a butter factory to deal with 1500 cows. It was pointed out that 1000 cows would need to bo guaranteed for a butter factory and 800 for a cheese factory. • Mr "Got/, stated that in his opinion there was room in this district for the establishment of two cheese factories. A choose factory' was to be established at Makerua immediately" under a guarantee of 000 cows. After a further general discussion a committee consisting of Messrs Perreau, Francis, J\ Rcay, A. Evans and G. F. Smith with power to add, was apointed to canvass the district and report to a further meeting at the earliest possible moment.