DAIRY INDUSTRY

Manawatu Standard, Volume LV, Issue 243, 11 September 1935, Page 5

DAIRY INDUSTRY

MAKOWHAI COMPANY. The annual meeting of shareholders and- suppliers of the Makowliai Dairy Company was held yesterday, Mr P. Dixon (chairman of directors), presiding.

Mr 10. J. Rose, the retiring director, was re-elected, and Mr W. E. Bendall was reappointed auditor.

THE REXDALE COMPANY

OVERLAPPING QUESTION

At the annual meeting of the Ilexdale Co-operative Dairy Company, Mr AV. C. Harrington, auditor to the company, made some interesting remarks relative to the industry and to the company’s operations. The speaker explained that as the majority of the company’s suppliers were shareholders, it was evidence that cooperative activity did a wonderful amount of good in increasing the benefits ot those who practised cooperation.

A perusal of the balance-sheet disclosed that last year the total sales of cheese, etc., amounted to £21,300. This sum belonged to the shareholders, after deducting manufacturing and administration expenses. However, the amount to be divided among suppliers depended upon the way the board of directors controlled the business, and it was their duty to see that both the manager and the secreretary made their respective departments pay. It could be easily seen that the business was a well managed one, as the return to suppliers of 9jd after meeting all expenses, including depreciation, was very satisfactory. Referring to overlapping, the auditor stated that the most important problem confronting the dairying industry in the North Island was the constant setting up of competitive rivalry between factories, many of whom in the process of extending their business played havoc with local factories which had been in existence for a good many years. It was little wonder that at a recent conference ol dairy farmers ltelcl at Palmerston North, there was considerable unanimity of opinion on a proposal of legislative sanction for co-operative and other dairy companies to have power to oppose under certain conditions and through appropriate channels, overlapping. He urged that any coordination scheme must take into consideration the demand for a factory in the district, the protection of shareholders’ capital and also the protection of the rights of creditors. Mr Harrington remarked that he believed in competition, that was, healthy competition, but the extent to which some companies went in order to increase their connection was unfair, and overlapping without regard to those already in the field should he discouraged. “In my opinion,” said the speaker, “the best marketing system for dairy farmers for their milk is to shorten the route from farm to factory, and not to lengthen it.” Mr T. H. Verrv, chairman, thanked the speaker for liis remarks.