CREAM SUPPLIES

Timaru Herald, Volume CXLV, Issue 21181, 31 October 1938, Page 6

CREAM SUPPLIES

Dairy Farmers Meet Manufacturers Various Matters Discussed Many Questions Asked GERALDINE, October 29. "We are bringing the suppliers more in touch with the manuiacturer, a question of which ls most important, ’ said Mr G. Wooding when introducing Messrs S. P. Taylor, W. H. Stanilana and L. R. Clarke, of the Ashburton Dairy Company to a meeting of cream suppliers at Geraldine on Friday evening. The meeting was under the auspices of the Geraldine branch of the New Zealand Farmers’ Union. Problems both affecting the cream supplier and the manufacturer of butter were given by Mr L. R. Clarke, manager of the Midland Co-operative Dairy Company (Ashburton). Messrs S. P. Taylor (chairman of directors) and W. H. Staniland (provisional director) of the company also spoke. In extending thanks for the invitation to visit Geraldine and meet suppliers, Mr S. P. Taylor said it was good to meet with a view to achieving better understanding of common problems. Any difficulties could be overcome, he said, if they were discussed.

An important branch of science was dairy science, said Mr Clarke. On one side of the industry there was the cpw and on the other the factory. People sometimes complained, he said, because their tests varied while they claimed to have as good cows as anybody else. However, it mattered not how good the cows, or how high the test, if something was wrong with the mechanical device, the separator, which came between the cow and the factory. A good deal of responsibility for cream of poor test lay with separators which were not in order. One common fault after the third year of the separators life was the wearing of the discs, said Mr Clarke. With the shifting of the discs the holes became blocked and the milk missed a number of discs and produced a lower test. When a separator had worn in this manner, quite big variations in tests were common.

Mr Clarke said that some suppliers complained because their tests dropped from 41 at the end of the season, perhaps to 31 or 32 in a new season. Nature placed the milk in the mammary glands of the cow for the use of the infant calf, and at this time of the year when the calf was just born the fat globules were smaller but there were more of them. A separator, he said, should be adjusted in the spring to meet this, otherwise the cream would not produce the test it did in the autumn. A quarter turn of a screw would make a diffa. ence of three to four in the test, the speaker continued, and a half turn a difference of six to eight points. The cream was then sent for treatment at the factory and there was some doubt in the minds of the suppliers as to why the tests should be low or high. One supplier’s test, Mr Clarke said, had recently dropped from about 54 to 17 and if it dropped much lower it would become milk. Testing was not carried out individually, but in batches of 32 bottles, the speaker went on, and the cream all received the same treatment. If th: tests dropped, then the supplier should seek the reason. Amalgamation of Factories Mr Clarke claimed that the difficulties of the first year of amalgamation had now been overcome. He said that he had received three or four communications because cheques of final bonus payments had not reached suppliers as quickly as possible. The rinal batch of 300 bonus cheques had been posted on Tuesday last, and some of the staff had gone back on Labour Day to get them away. Suppliers would understand the difficulties of the first year of amalgamation in a factory which now had 3200 suppliers. A lot of these difficulties would be overcome in the present year, and it was intended to close the year a mont’i earlier in future which would enable earlier bonus payments. Referring to the fact that the balance sheet of the company had not yet been published, Mr Clarke recalled that it had not been published until December last year because of the amalgamation of the Ashburton an.’. South Canterbury factories. Disorganisation because of this, and because of illness on the staff, had caused delay, but the statement was now nearing completion and was sufficiently advanced to give a retrospect of last year.

Grading the Cream In accordance with the guaranteed price, Mr Clarke said 1/- had been advanced on finest, 11-id on first, .nd lOid on second, during the year, and the average advance was 11.96 d. It could be seen from tjiese figures that the greatest percentage of cream had graded finest. The factory had paid out l/2.375d for the season on finest, including the bonus, and the average pay-out on all grade ’-as 1 1.375 d. Mr Clarke continued that the factories had handled 349,000 odd pounds of butter at Ashburton and 556 tons at Timaru, the cream from South Canterbury during August, September and October being sent to Ashburton for manufacture. The grading of the company’s product up to November last had been ordinary, with a maximum grade of 93. From the end of November, the grade had taken a forward step, and a change in the weather had assisted in bringing the grade from 94 at both Timaru and Ashburton, with isolated lots at 94.5. The company was aiming at 95 this year, said Mr Clarke, because all butter so graded would receive a premium of 1/8 per pound under the guaranteed price plan. Costs had shown quite a reduction under amalgamation, said Mr Clarke, and worked out at 2.54 d per lb. They were handicapped a certain amount, he said, because there were two factories and the whole of their production was not under one roof. A certain amount of the plant taken over had to be replaced and these casts would not be recurring. According to the forecast by the Minister of Marketing (the Hon. W. Nash) 1/2.38 was a fair

price for an average economically run factory with an overrun of 21.75, Mr Clarke continued, and the average payout of the Midland company was 1/2.375 or within 1/200 of Id of the Minister’s forecast. Determining Factor The speaker said that over-run was the determining factor in the payout for the season and proceeded to explain how over-run, the difference in weight between butter-fat supplied and butter produced, came about. He anticipated the day when the over-run would be standardised and said that under the guaranteed price it might be considered that a bonus of 2 3/8 was too much to hold back. Reviewing the finances of twelve North Island factories, the speaker said that in no case did the over-run exceed 22i. In seven cases it was under 22, and in four over 22. The highest payout for these factories was 1/2.4d and the lowest 1/1.83d. The speaker also explained that the company did not receive the 1/2A a lb. received wholesale for butter, approximately id a lb. of this going to the Dairy Industry Account.

Following on a request made in South Canterbury, Mr Clarke said the Board had remodelled its articles of memorandum so that bonus within 1/4 a lb of the maximum paid, could be paid to the non-shareholders. Mr Clarke said they had a genuine desire to give a satisfactory service to suppliers. During the past season matters might not have always been satisfactory as they should because of the need for re-organisation after amalgamation, but these isolated cases of trouble had been overcome and they could look forward to even better results in the coming year. Questions Asked In reply to a question asked by Mr J. Sharpe, Mr Clarke said that a change in constitution would enable the factory to buy out dry shareholders which would be done a basis of 15 - on a £1 share, or proportionately on shares not fully paid up. However, 4 per cent, on paid up capital was paid to all shareholders. It would be possible to resume only so many of these shares each year, Mr Clarke explained. In answer to questions as to why certain suppliers had not received bonus benefits, Mr Clarke said that sometimes the shares had been taken out in the name of the supplier’s wife and actually the supplier had no shares. It was difficult to trace the.se cases because of difference in initials, but if notified the company would payout a bonus.

Mr W. H. Davey asked if butter could not be carried out at least twice a week during summer months. Mr Clarke said that butter day was a nuisance to the driver.. When a driver took longer on his rounds, costs were increased.

Mr H. Coulter: “We can’t get a cow to work 40 hours a week.” (Laughter.)

In reply to Mr Sharpe’s question why such things as can brushes could no longer be supplied Mr Clarke said that if there was a demand for these they would be supplied. They had made about £6OO out of sales of accessories in the Ashburton area last year. A questioner said he wanted to obtain wheatmeal but a driver had said that it could not be supplied as they were not allowed to carry it. Mr Clarke and Mr Staniland said there was no reason why service in connection with the supply of accessories could not be continued.

When asked if suppliers’ cheques could not be sent out in the cans to save postage, Mr Clarke said that the importance of the business between suppliers and factory warranted a Id stamp. In reply to Mr R. E. Mell wrick, Mr Clarke said the butter sent to suppliers was finest grade. Timaru, he said, had shown a bigger increase in grading points last year than any other port. Damage To Cans Asked who was responsible for the condition in which cans were returned, some of which had been returned damaged, Mr Clarke said that the company was responsible if damage occurred. He would look into the matter and emphasise the need of more care in handling cans. Mr W. S. Crotty if it was true that the grading had been made easier after the visit of the Minister of Agriculture last year, and that it had been tightened again this year. Mr Clarke replied that the suggestion was not correct. Any change in grade was probably due to seasonal and climatic differences.

The question of cream collection caused discussion, and Mr Clarke stated that in some cases it was not economic to go long distances specially to pick up small quantities of cream, and some of these trips had to be cut out. It cost .68d per lb, or 5.2 d per mile, to collect cream. However, there was no intention fo forcing suppliers to bring their cream to main roads and crossroads.

That big suppliers should be given preferential treatment was considered | by Mr Clarke to be a one-sided view. While it was better for the factory to handle large supplies, it would not be economical for the lorries to travel long distances to collect from large suppliers only. No supplier who had a quai Ity of cream for th: company would be turned down. Mr W. H. Davey: Is it not just the thin edge of the wedge and that suppliers will be asked to take their cream to the main road? The chairman of directors (Mr S. P. Taylor): Credit them with common sense. Mr W. H. Staniland said there appeared to be a feeling that some drastic action was contemplated. There was no intention to vary the practice of the past. Asked if more care could be given with suppliers’ cans, Mr Taylor said they wanted to give suppliers 100 per cent, efficiency and the staff knew what the company stood for. “We will not stand for suppliers’ cans being knocked about,” said Mr Taylor. Asked by Mr W. S. Crotty if he did not consider a factory with 3200 suppliers too big, Mr Clarke said that the amalgamation would enable greater efficiency and would warrant the introduction of labour-saving plant. In reply to Mr C. G. Hibbs, who asked what the object of zoning was, Mr Clarke said that there were many benefits even if they were not apparent. Under the old cut-throat competition hundreds of pounds had been lost to suppliers. A vote of thanks was carried by acclamation on the motion of Mr W. 8. Crotty.