CO – OPERATIVE DAIRY FACTORY.

Opunake Times, Volume IV, Issue 178, 17 March 1896, Page 2

CO - OPERATIVE DAIRY FACTORY.

(to the editor.) Sir,— l S o e by your issue of the 14th February : ’ you contemplate starting a cu o;> uive dairy factory. I therefore send you the “ Yea Articles of Association,” which may be of some use to you in forming the company. From the experience gained here, I should advise a fair capital to begin with; that the factory should be large enough to admit of an increase of business ; that it should be lofty, and erected near one of your beautiful streams ; but that no “ leap in the dark ” should be taken till you are sure of the requisite capital and at least 500 cows to begin with —if 1000, so much the better.

We commenced here with a capital of T 3000—6000 shares of 10s each. As soon as 2000 shares were taken up, operations were begun. The first season we had not a factory; .the cream was sent by rail from three or four creameries to Melbourne, a distance of about 80 miles. Next season the factory was built. Mr David Wilson, Government dairy expert, advised that no creamery should be more than seven or eight miles (by road) from the central factory. Some of ours are 16 miles; some by rail and road 30 to 40 miles. On the whole, it answers better than expected. Before any fresh creamery is erected by the directors they have made a condition of 500 shares being held or taken up by the people in the locality : the last two creamery suppliers had to pay a premium of 5s per share. Ido not know whether in New Zealand you can do without a refrigerating plant: if not, be careful in your selection, for the one got here three or four years ago is now regarded as almost out of date, and will have to be replaced at considerable cost next season ; it is also too small for the added requirements' of our factory. I enclose you last half-yearly report, and you will see that over 1500,000 gallons of milk were separated at the factory and seven creameries.

You may perhaps ask—“ Are the suppliers satisfied ? ” Yes and no. Some think they ought to get more for their milk, while others realise that non-supplying shareholders deserve interest on their capital (8 per cent last two years), and that the company can give no more than it extracts from the milk in the shape of butter-fat. The price fluctuates considerably, ranging from 2Jd to 3id per gallon (3-6 Babcock test). In the spring, when grass is green and plentiful, and the milk supplj greater, the tests are a good deal lower than they are later in the season. I send you the tests last published and those taken in October, so that you will see the difference for yourself. My notion is, if the Opunake people determine to start a co-operative dairy factory, they should send two practical men like Mr Lambie and Mr Stevenson around to the best factories in the North and South Islands. It will cost a little more, but it will probably prevent big losses, and enable the company to avoid mistakes which might deeply involve the company. (Should they decide on coming as far as Melbourne I will promise to meet the-m at my own expense and show them the largest factories in that city, one-of which made over 900 tons of butter during the last half-year.) I made a similar proposal when it was decided to start the factory in Yea, and my motion was carried. Had it been acted on, we should probably have had a better site and a more convenient factory than we have. I do not know that I can give you much more information, but if I can be of any service to the people of the Opunake district—whose many kindnesses I well remember—l shall be glad of an opportunity to discharge any obligation to them. Permit me, sir, in conclusion, to congratulate you on your able advocacy of all that pertains to the welfare of Opunake, and I sincerely trust that the Times will continue to prosper as well as the district.—l am, &c., P. Galvin. Yea, Victoria, March 2, 1896.