CREAM SUPPLIERS

New Zealand Herald, Volume LXXIV, Issue 22775, 8 July 1937, Page 13

CREAM SUPPLIERS

MANAWATU COMPANIES COMPULSORY SHAREHOLDING REDUCTION OF OVERLAPPING [b.v tf.i,kgnaru—r r kss association] PALMERSTOX NORTH, Wednesday Delegates from dairy companies manufacturing butter in the Manawatu district met the Executive Commission of Agriculture at Palmerston North today, to make decisions of far-reaching importance to tlie industry in the district. The resolutions were aimed at reducing the overlapping of cream lorries, and at compulsory shareholding by suppliers. The effect of the decision regarding supply will be as follows: —(1) Farmers will be given the right to supply one of two factories; (2) factories within seven miles of each other will he considered as one unit, so that suppliers, under certain circumstances, 'will have the choice of three factories; (3) each factory will have the right to collect from its present suppliers outside its area; (i) the agreement will operate for a year from to-day. Any company breaking faith is liable to a penalty of £IOOO.

It was agreed that compulsory shareholding should operate as from August 1, 1937, the basis to be between a £t share for every 1001b. butter-fat, and a £1 share for every 3001b. butter-fat, or the equivalent. Grounds for Exemption Exemption from shareholding may only be obtained on religious grounds, or by tlioso supplying under 15001b. butter-fat a year, but these suppliers will be required to pay a service charge, the small supplier always, because his supply is regarded as a nuisance, but the religious objector only until he has paid the equivalent to the call on share capital.. Deductions to be made for share capital were fixed at from id to id per lb. butter-fat, up to a minimum of 50 per cent of the share liabilitv.

The Executive Commission accepted the decisions.