DAIRYING SEASON.

New Zealand Herald, Volume LXII, Issue 19041, 11 June 1925, Page 11

DAIRYING SEASON.

NEW ZEALAND COMPANY. THE YEAR'S OPERATIONS. LARGE STOCKS IN LONDON. . [BY TELEGRAPH.—OWN CORRESPONDENT. J HAMILTON. Wednesday. A review of the operations of tho New Zealand Co-operative Dairy Company during tho last year was given by representatives of the company at a meeting of suppliers at Horotiu to-day. Mr. W. E. oung presided over a good attendance. One of the directors, Mr. T. C. Blackett, said the severest struggle between co-operative and proprietary concerns ever experienced in the history of New Zealand was now taking place. Ho spoko of the fluctuations that had occurred in the market prices for butter and tho irregular shipments that had taken place during tho last few months, and said that owing to the low prices that had been paid for butter recently enormous stocks of produce were at present held in store in England. The New Zealand Dairy Company had 7000 tons of j butter unsold, and no ono could say what I tho total payment would be this season. Tho farmers in the Waikato had had an excellent season so far as production was concerned, and ho considered that the ; pay-out would not bo far short of that | of last seaspn. Sir. C. J. Parlane said that up to the end of May the New Zealand Dairy Company had manufactured 22,520 tons of butter, an increase of 1859 tons as compared with last year, and 4443 tons of cheese, an increase of 396 tons. Milk t powder totalled 3981 tons, an increase of 370 tons, and casein 600 tons, 38 tons" less than last year. The company had experienced a great deal of competition from rival concerns, but it had reason to be pleased with tho loyalty of its suppliers. An over-run of 20.59 per cent, had been secured, and as the ideal aimed at was 20.6 tho company had troated suppliers very well. The Holding of Stocks. The production of Siberian butter had been - increased by one-third this season, while quantity of butter exported from Australia was equal to double that of any previous season. England was practically the only butter market, and as a result large quantities of butter wero being accumulated there. In January, when the price in England slumped from 202s to 1565, tho majority of tho New Zealand dairy companies requested their agents to hold their stocks in store, Spending an improvement in the prices. The price improved to 1725. It was likely that some companies would be obliged to release their stocks, and on the quantities thus released would depend the prices during the next few weeks. Referring to the matter of quality Mr. Parlane said that at the beginning of last season the company had increased its grading points for super-fine cream to 92, and as a result there had been a reduction of a few points in the quantity of superfine supplied this year. He admitted that the company had been hampered to some extent owing to its finances. Three years ago the company's output had been increased from 12,000 tons to 18,000 tons. The company'had sto make heavy capital expenditure to cope with this increased output. Cash had to bo paid for everything purchased, while tho share capital received was then comparatively small. The position, however, had rapidly improved during the last year or two, and as share capital was coming in rapidly a very satisfactory position was being brought about. ' Extensions at Hgatea. . There would be very little capital expenditure during the next few years, although extehsions would be made to the Ngatea factory to cope with the rapidly increasing supply in that? district. In future suppliers would not be obliged to take up additional shares for increased supplies, and they would have the option of taking up paid-up shares or contributing shares. The company also proposed to subsidise the payment of cartago services up to a lb. butter-fat. Tho casein business had not been satisfactory during the year, said Mr. Parlane, and in future it was proposed to make rennet casein at several stations instead of- lactic casein. A quantity of rennet casein had been made at Karapino and had realised £8 a ton more than French casein, which had always been regarded as the best in the world. The revenue would bo pooled among all the casein suppliers, and the cost of reorganising tho stations would be reimbursed from the increased prices: The proposed change would, it was hoped, give a stimulus to the manufacture of casein in New Zealand, and it was expected that' much better prices would be realised in future. • . Referring to tho company s coalmine at Glen AftOn, Mr. Parlane said the mine had produced 154,000 tons during the year. The daily output was about 650 tons, while on one day 762 tons had been procured. A good deal of capital expenditure had been involved in providing accommodation, a store, a picture show and a 3rving room. Most of these yentures wero' revenue producing and the exnendituro had come out of the profits. Improved machinery had been installed at tho company's < box factory, and considerable economies were now being effected by making a wire-bound box which required less timber than was needed in the old style of box. The meeting passed a resolution supporting the absolute control of dairy produce and tho adoption of the council system of election. 'V