DAIRY FACTORIES.

Manawatu Standard, Volume LVII, Issue 157, 4 June 1937, Page 5

DAIRY FACTORIES.

EXISTENCE THREATENED. SOME MAY CLOSE. INVERCARGILL, June 3. Mounting costs in the manufacture of dairy produce may seriously affect the existence of small dairy factories, as it is reported that a reduced pay-out from such factories causes suppliers to contemplate a' change of factory or to cease dairying altogether. In Southland one dairy company has decided definitely to cease operations, and it is reported that one or two other factory directorates are giving serious consideration to their future.

Tho Waikawa Valley dairy factory, which is ,\ small concern with an output of from 20 to 30 tons of cheese a year, is the first Southland factory to succumb to tho prevailing trend, and this company is offering tho factory, plant' and other assets at public auction to-morrow. Tho factory has served the district for a number of years, but at of the present season thc_ directors decided that bceauso of the increased cost of manufacture, and the tendency of some suppliers to change from dairying to other forms of farming, it would not be possible to carry on. Several other small factories in Southland are said to have considered whether they will continue to operate, and it is thought possible that some will close down, but no decisions have yet been reached. The secretary of one factory which has been mentioned as being likely to close refused to comment when approached, but tho impresison was gained that the question was under consideration. ~