FINANCE FOR FARMERS

New Zealand Herald, Volume LXII, Issue 19092, 10 August 1925, Page 11

FINANCE FOR FARMERS

PURCHASE OF DAIRY STOCK.

WAIKATO COMPANY'S SCHEME.

SUBSIDIARY ORGANISATION.

[BE TELEGRAPH. —OWN CORRESPONDENT.]

HAMILTON. Sunday. A proposal to form a dairy finance company for tho purposo of assisting farmers to purchase dairy stock is being considered by the New Zealand Co-operative Dairy Co., Ltd. Referring to the project tho managing director, Mr. W. Goodfellow, said the Dairy Company some time ago practically had to close down on its scheme for making cash advances to farmers for buying stock. This was largely duo to the fact that the company had gono through a period of considerable expansion and in consequence all its available capital had been required for the erection of new factories. Now that the increase in production had become normal and the value of land and stock had become stabilised, the directors had decided that the time was ripe for the formation of a subsidiary company to be called the New Zealand Dairy Finance Company. This concern would bo controlled by the New Zealand Co-operative Dairy Co., Ltd., and would have a capital of £75,000. It was anticipated, said Mr. Gpodfellow, that tho Dairy Finance Company would be able to make cash advances to the dairy farmers for the purposo of buying additional cows to tho extent of between £30,000 and £35,000 a year. The maximum limit advanced to any one supplier would be £350. A portion of the suppliers' cheques, would be held for repayment. The directors intended to charge Borrowers 2 per cent, over and above the bank rate of interest, so that'the. interest charged by the company at present rates would be 8£ per cent. M». Goodfellow said negotiations were now being carried out for financing the project.