Kaitaia Dairy Co. Undertakings

Northern Advocate, 20 February 1939, Page 4

Kaitaia Dairy Co. Undertakings

The new offices now well advanced in Commerce Street, would cost nearly £3OOO said Mr E. R. Bird, the chairman, in outlining to suppliers work in hand or to be undertaken by the directorate of the Kaitaia Dairy Company. ‘The successful tender was £2BOO, and it was hoped that when the job was completed they would have a building of which, they could be proud. The suppliers would not notice the small deduction from butterfat payments necessary to meet the cost. Clearing House For Facts.

Mr Bird invited all farmers’ organisations, including the Young Farmers’ Club to regard the office as a kind of clearing house. They were at liberty to make full use of the office in getting information, and a room would be provided in which they could acquaint themselves with reports from Government departments or other sources which might be of interest. Wharf Improvements.

With regard to wharf improvements at the factory Mr Bird trusted the work would be completed before the flush of the manure season and within the estimate.

Owing to a new development the company was faced with a new problem. The site on which coal was screened at the back of the factory was showing a tendency to move into the river, and to prevent any encroachment on their assets in the factory buildings, valued at about £25,000, the directors wore investigating the cost of protective works. They had no estimate yet, but a report was being prepared. High Grading Maintained.

The next matter referred to by Mr Bird was the fact that the factory manager was getting better grades than ever. Last year, on account of finest grades, one-tenth of a penny per lb. had been paid out over and above the guaranteed price, and he was pleased to say they would get that again this year. With cream grading things were going, well, and the indications were that finest would be considerably higher than last year. Decline in Output,

Dealing with output, Mr Bird said the secret of getting costs down was to increase the oupiit without additional expense. They had had a peculiar season, and it looked as if they were going to move back in production this year.

The cows were not holding up and there would be a steep decline in output and the ratio of costs would go up. Mr Nash's estimate of what the farmer would receive for the year w.as 1/3.88, including the bonus. Their

own company had made advance payments of l/2i for finest, and most of their output was in this grade. There was a prospect of a further payment of lid per lb. Sea Transport Best.

Mr Bird said that no other form of transport couid compete with the boats for butter and fertiliser, and, when a new system tending to take the most profitable freights from the boats came up, the directors opposed it. The premium they now got for quality would be lost if they lost the boats .and the extra cost, of getting the butter to Auckland would be about £7OOO -a year. No shipping company was paying big dividends, and. if the most profitable freights Avere taken away, up would go the charges for what remained. The trucks would then raise their charges, to be followed by another rise by the boats, and both would, in the end, do reasonably well at an exorbitant rate which would mean thousands of pounds to the district. They were getting a thrice weekly service by the boats, and it was only a few now businessmen who spoke lightly of this service. Factory Site.

Mr J. M. Dawson asked if the directors had considered whether the factory was on the right site.

Mr C. B. Michie: To shift it to the only other site suitable would suit me because I own the land, but it would be a betrayal of the company to suggest it.

"The present factory site is not endangered by any of the features mentioned by Mr Bird. The site is not slipping into the river, but the river had been dredged below its former level and there had been an ooze from the bank.’’

Mr Bird: Mr Packwood's report showed .that for every mile of road to a new wharf, the cost of transport would be £BOO a year. Mr Bird mentioned that under present conditions Kaitaia received the highest average per ton for Northland