DAIRY FACTORY AREAS

Manawatu Standard, Volume LVI, Issue 121, 23 April 1936, Page 10

DAIRY FACTORY AREAS

ZONING PROPOSALS. FURTHER SUGGESTIONS MADE. Definite suggestions for the zoning, for butter factories, of the West Coast area coming within tho confines of the Manawatu and AYest Coast Dairy Factories’ Association came before a meeting of the executive of the association yesterday in the forrii of a map from the Executive Commission of Agriculture. The map was accompanied by another showing where the collecting lorries of the various factories now operate and the proposal was made in an accompanying letter that the committees arranged for at a recent meeting of factory directorates should meet to discuss the matter. At that meeting it was decided that the area affected should be divided into two districts, the dividing line being through Linton. The committees will be formed of one delegate from each factory, so that there will be a butter committee and cheese. committee for the northern district and a butter committee for the southern district. A cheese committee is not required in the latter district because there are only several cheese factories there and they have well-defined areas. “The members of the Executive Com r mission of Agriculture are pleased that the meeting resolved to further the rationalisation of butter and cheese manufacture in your district, and it is hoped that satisfactory results will be achieved from the desired system of zoning of supply,” stated a letter accompanying the maps from the •de-puty-chairman of the Commission. The letter proceeded ; —“With the object of being helpful the following suggestions are submitted:—•

“(1) Shareholding.—The directorates of all the companies should meet and formally resolve: (a) That if their companies are not already registered under the Dairy Industry Act, they become so registered, (h) That they will re-arrange their shareholding to eliminate ‘dry’ shareholders by purchase, as far as possible, and so that all suppliers hold shares proportionate to supply, except in the case of very small suppliers. The actual allotment of shares would be made when boundaries were fixed, but the decision of the company to re-arrange its shareholding would be necessary before the zones were decided, (c) That each company’s capital position be investigated to discover the amount of capital necessary for the business of the company, and the corresponding share basis to provide this necessary amount of capital. In this regard each company should confer with its solicitor as to necessary amendments to articles of association, and in respect of the readjustment of the company’s capital. “(2) Work of committees.—lt is suggested that tho committees meet as soon _as possible to study the maps showing the routes over which collection is now made by the various companies, to ascertain the quantities of supply'on each road and to see how far they can get in suggesting acceptable tentative boundaries.

“(3) Attendance and help of Commission:—The Commission is very desirous of helping in every possible way and will be ready to attend when necessary. It is suggested, however, that the preliminary meetings be held without the Commission—this with the object of saving the time of the Commission as far as can reasonably be done.

“The foregoing are merely suggestions for the consideration of the interested parties. The Commission would like to see the companies go right on with the scheme of rationalisation, believing that the present is the opportune time.”

The two maps were large in size. One showed, by means of coloured lines, where the collection lorries were running now, each factory being allotted a colour. The second map gave the proposed new areas with the same oolours defining the boundaries. In some cases there were big changes. As an instance, in the case of the Awahuri Company, shown as collecting cream now from as far away as Ashhurst, the new area did not include Feilding, Bunnythorpe, or Palmerston North, but continued to the Rangitikei River on the other side.

11l reply to a question by, Mr S. E. Algar, the chairman (Mr S. A. Broadbolt) said that'the committees which were to be set up were for the purpose of examining the' proposals and seeing what could ho done. The committees had now to meet.

In a general discussion it was decided that the committees should be called together by the association. It was then decided that the northern cheese committee meeting (affecting factories north of Linton) he held on April 30; that the northern butter committee meet on May 5, and that the southerif butter committee meet oil May 6 (at the Levin Dairy Company’s office). The secretary (Mr R. H. Spencer) undertook to leave the maps in a position where they could he studied, it being emphasised by ’ several delegates that those to attend the meetings would be advised to study the proposals previously.