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Manawatu Herald, Volume XLIX, Issue 3832, 16 August 1928, Page 3

♦ RECOMMENDATION TO SHANNON DIRECTORS. At Saturday’s annual meeting of shareholders of the Shannon Cooperative Dairy Co., Mr. George Barber mo\ r ed that it be a recommendation to the directors, “That it be seriously considered by them the advisability of changing from butter to cheese.” He said that according to the market reports in other parts of the world and from the reports from the people avlio handled their produce, cheese avould ibe the best proposition in the near future and even noAV Avas more profitable than butter. Cheese prices had held for some time and for the past tAvcnty years cheese had been more profitable than butter. One factor Avas that companies who had got their plant and property clear had been able during the past season to pay 1/101; and 1/9 for butterfat. He contended that Avith butter there Avas now no outlook in regard to stability in price and there Avas a lot of opposition.

Mr. JeAvell, in seconding the recommendation, strongly favoured the question being gone into, pointing out the uncertainty of the butter market in the future. They had found under the butter control that NeAv Zealand butter Avas not absolutely essential in England; it Avas boycotted. Further, Avith the erection in Siberia and Russia of proprietary concerns financed by the large mercantile houses these proprietary factories were going to have a bad effect on our co-opera-tive concerns,- as they Avould Avork in Avith the houses financially interested; with the result that our butter prices will be affected for years. When butter reached a certain price margarine came in. Cheese, he said, AA r as a staple food in the United Kingdom, Canada and U.S.A. In the past Canada Avas the largest competitor on the English market, but hoav most of the Canadian cheese Avas sold in Canada and U.S.A., leaving only Ncav Zealand in the market. “Experts adA r ise us to pay more attention to cheese. It is not a question of sentiment; it is one of £ s. d. The argument is all in favour of cheese. ’

Mr. Janies said that Avhile not casting reflections on the previous speakers, he considered it Avas a lot of “tommy rot” that Britain could do without NeAv Zealand butter. This information Avas quite contrary to Avhat the agents told them. One agent told them he required 3000 tons more this year. Mr. Stiles said they should know what the by-products were worth to them. They had also got to cart milk. It Avould not tempt him to change over at 1/8 for cheese against 1/64 for butter. It Avas quite right that the directors should consider it, hoAvever. Mr. .'Chrystall said the one thing that would not turn him Avas the by-products. The butter man could keep stamina in his herd, but the cheese man could not. Mr. W. S. Carter said he had had experience of both. The serious part Avith supplying a cheese factory Avas haulage and he did not think Id per lb. covered this, Avliile by-products Avere certainly 14d per lb. in favour of butter. Mr. R. Law said it Avas most important that they should consider that for the past tAventy years they had been manufacturing butter and they Avere uoav in the position that they were envied all over New Zealand. “Our pay-out is always equal to any other butter factory and Avith our grade Ave have no fear. We have done well and our goodAvill is certainly Avorth looking after,” he said. Mr. JeAvell: There is no complaint Avhatever against the Shannon Dairy Co., but Ave have arrived at a point Avhen Ave have got to consider this question. > He maintained that indications everywhere are undoubtedly in favour of cheese. Mr. Larv: If Ave switch from one to another rve Avill soon lose our goodwill and it Avould be a bad business. Mr. G. Barber said that, if it was better to make the change, they should have it. “If we are going to get something more, the directors should go into the matter to see whether it is right or wrong.” The recommendation, Avith an addition, “That in the event of the directors considering the time is opportune to make a change the matter be referred back to the shareholders before action is taken,” Avas carried.