Glaxo Suppliers’ Meeting

Manawatu Times, Volume LIV, Issue 6626, 13 August 1931, Page 8

Glaxo Suppliers’ Meeting

On Tuesday evening a meeting was held in the Bunuythorpe hail when Mr. H. E. Pacey, of the Glaxo Manufacturing Company, put the company’s proposals for tno coming season oefore the suppliers. There was a largo attendance over which Mr. J. W. Cleveiy, the chairman of the suppliers’ committee, presided. Mr. Pacey, on rising to make his address, stated that as he had “something good in his barrel,” ho anticipated a good reception. He was glad to see such a largo attendance. The season had been a very anxious one for both the farmer and the manufacturer. Butter prices had increased slightly during the season, but had been fluctuating considerably in a low level throughout. Tho value at the end of the year was little more than Is a lb. He was extremely disappointed that the company could not pay out more than it had done. There was an expected increase in the butter prices on overseas markets, but these came down again to about 110 s to Ills, due to tho financial position in Germany. Denmark, being unable to dispose of its butter in German,y sent it to England whero it could be landed at about 2s cheaper than tho New Zealand product. Regarding cheese, tho speaker added there had been many complaints about openness and it was necessary to fine! tho cause of this as soon as possible. Thero was always some misunderstanding about standardisation owing, probably, to the misrepresentation of the standardising system. Mr. Pacey briefly explained the system and its aims, pointing out tho necessity of keeping a regular trade. Tho only way to do this ivas to keep the goods constantly on the market. Cheese had

not paid as well as butter during the ■season. Whereas butter brought us or thereabouts, cheese averaged oaiy about lid.

Casein was a bit disappointing, but it had brigntened up somewhat towards the end or tho season. The conditions prevailing in November were such that tne Casein Company was considering the prospects ot closing down, but insteau of this tho company had put into force a great reorganising senemo to effect economies with the result that the production costs had been reduced by 25 per cent. During the year tho Casein Company had put out from its factory at mramolio lio(J tons and had 150 tons left on hand at present. Keen competition was experienced lroin Prance and Argentine, while J apan had considerably increased its production. Casein returned an average of about per lb. of butterfat. Mr. Pacey recognised that casein was an important line and that it was a mistake to abandon it altogether. Tho Glaxo Company had commenced making casein during the 1923-21 season. Tne output was small aud tho prices low, but before the close of the season the price had increased to three times its level at the beginning of the season conditions were considerably different now. The average payout at Bunnythorpc for tho season was expected to be about 13.8 d. The average so far paid out had been 12.1 d while it was expected that the bonus would reach 1.7 d. Prom tho expressions of some enquirers, Mr. Pacey concluded that this was a larger sum than was expected by most. The company had completely fulfilled its arrangements with its suppliers even by an inevitable loss to itself. The Bunnythorpo factory, having been iiuilt for tho manufacturing of dried milk, it was difficult to make any other product pay satisfactorily. There was no chance, however, of making milk powder this season or even next, he declared. Referring to the forthcoming season, Mr. Pacey said that the factory would separate and manufacture casein curd. The directors of the company had finally agreed on proposing to pay an average of the payout for butterfat of the Awahuri and Cheltenham butter factories plus 5-8 d per lb. He regretted the delay of the meeting, but this had been inevitable owing to another late meeting from which he had required certain information. In the event of any suppliers desiring to change over to home separation for the season, Mr. Pacey allowed them a week in which to do so.

The meeting closed with a cordial vote of thanks to Mr. Pacey and to tho chairman. The suppliers are to meet this evening when they are to decide whether or not to accept the company's offer. EVENING SOCIAL. A very enjoyable social and dance was held in the Te ltebunga hall in the evening, when the music was supplied by Wi Duncan and his band interspersed with items by the Maori Choir.