WAIKATO DAIRY COMPANY.

Waipa Post, Volume VII, Issue 323, 16 June 1914, Page 6

WAIKATO DAIRY COMPANY.

MEETING OP HAIRINI SUPPLIERS. About thirty suppliers to the Waikato Co operative Dairy Co., together with other settlers of the district, met Mr Goodfellow, managing director, at the Hairini hall on Friday evening last, when a report of the year's business was submitted. • Mr T. Weal was elected to the chair, and in a brief but appropriate speech introduced Mr Goodfellow, who prefaced his remarks by stating that the prices for dairy produce during the past season had been fairly satisfactory, although the strike had seriously effected the Home market. The dry weather in January and February had cut the supply down, but the autumn had been good, and so the supply for the season had been fairly good. "The strike ha"d brought about three things that would mitigate against the dairy industry in New Zealand. In the first place the quality of the butter had been depreciated through the long period of storage; secondly, prices had fallen owing to the flooding of the London market in the flush of the English butter season, as. a result of the disorganisation of shipping; and thirdlv, the New Zealand producers had lost a large number of their regular customersin London, since buyers, finding that they could not obtain New Zealand butter in the quantities they required, had turned their attention to the Australian and Siberian articles. They found that the product of these countries had improved considerably, and when New Zealand butter had come along later they had not considered it worth their while to make a change. The prospects, however, were that next year again New Zealand butter would find its old place on the English market.

QUALITY MUST BE KEPT UP. The great thing that all butter makers had to look to was quality. There was absolutely no place upon the export market for the second grade article. Margarine had a substantial hold. Recently the Board ot Health, and several medical authorities in England, had decided that margarine was equally as nutritious as butter, and consequently a large number of hospitals and other institutions had decided to use margarine in future. Dairying in Siberia and Australia was being encouraged, and the export trade from those countries was being studied. He made mention of the prices quoted upon the London market, making a comparison between the New Zealand and Australian product. Tha quality ot Siberian and Australian butters had improved so much that it had become imperative for New Zealand dairy farmers to improve the quality of their product also. He did not believe the quality of New Zealand butter was going back, but he did think it necessary to improve if they were to keep ahead of their competitors.

THE OUTLOOK. The outlook for the future season was not a black one, and despite the competition with margarine he believed that prices would not "fall. Looking ahead, he could forsee a very big market for New Zealand produce in Canada, America and Germany. If the American market was to be looked to it was absolutely necessary that no preservative whatsoever be used, and it was regrettable that" traces of preservative had been found in the suppliers' cream, even though the company had circularised each supplier asking that the practice of adding preservatives in,any quantity be discontinued. Whilst this was being done, the company would have absolutely no chance of reaching the American market. CHEESE. There had been a wide discussion all around as to the relative values of butter as compared with cheese. He quoted figures which went to show that the supplier would require to obtain an additional per lb butterfat for supplying 10 a cheese factory than to the creamery or by home separation. They had to remember that the British demand for cheese was rapidly increasing, while Canada's production was rapidly decreasing, and no other country was taking its place. He therefore considered that in the near future there would be excellent prospects for New Zealand cheese, and large quantities would eventually be produced in the Auckland Province. He firmly believed that in the thickly-settled districts of Waikato the suppliers would be wise to go in for cheese in preference to butter. He considered that where 2,000 cows could be obtained within a radius of two miles of the factory the prices paid out would be 2d per lb higher all round than could be paid by either the Home Separator Company or the creamery.

QUALITY MAINTAINED. The past year had shown an increase in the quantity of butter by 25 percent over the previous year's trade, and he was pleased to report that the quality of the output had shown some improvement. The company had gone to some expense in the way of inspection and assistance to the suppliers, and had permanently engaged two qualified inspectors for the express purpose. There was absolutely no truth in the whispered statement that 400 boxes of the Waikato Dairy Co.'s butter had been rejected by the American authorities. The marked increase in the local sales, and the increasing demand was ample evidence of the general good quality. A SPECIAL OFFER. To enable the-company to successfully cater for the new trade with America, a special offer was made to those who would supply cream daily during the months September to March inclusive by guaranteeing an extra %d per lb. butterfat for sweet cream sent in daily. To obtain this special payment suppliers would require to guarantee that no preservative was used. Touching upon the question frequently asked, that the districts able to supply daily had an unfair advantage over those not in a position to do so, he submitted that the extra prices obtained in the way of sales would provide the extra price paid to the supplier, and at the same time it would give the company a hold upon new markets, which must be to the benefit of every supplier. For extra prime unsalted butter, too, there was a big demand upon the market to-day. He made mention of his recent visit to Vancouver, and touched upon the prospects for an increasing trade with Western Canada. PAYMENTS FOR BUTTERFAT. Referring to the five years' growth of the Waikato Company, he spoke of the returns. The first year the company produced over 100 tons butter ; the second year the output exceeded 400 tons; the third year it rose to over 600; the fourth to over 900; and last year it exceeded lioo tons, making the Waikato Co-operative Dairy Company the second largest butter-producing concern in the Dominion. Referring to the payments for cream, the speaker s;iid that the advance price for the season had averaged 11%, railage being paid by the company. In addition, there would be a shareholders' bonus of /4d, and possibly a small bonus for non-shareholders. AN EXPLANATION. In conclusion he made brief reference to the recent conference held at Hamilton, at which an endeavour had been made to complete an agreement between all those engaged In the manufacture of butter. The proposals brought forward were very rightly objected to by the Waikato Dairy Company, as it was considered preposterous to bind down the suppliers in the manner suggested. The supplier whose milk or cream was graded second should not be debarred for the whole season. He was a firm believer in a regular test, and payment accordingly, without unwarranted control of the suppliers' actions. Bis company next year intended to do the suppliers' testing free, and to supply boxes and bottles at cost price, so as to facilitate a regular system of testing, which was very essential. He urged every supplier to have the skim milk test d> regularly, and the company was alwavs willing to do this free of charge.

QUESTIONS. The chairman, in inviting questions paid a high tribute to the management, and especially to Mr Goodfellow for the exceedingly good work that was being done. The company was to be applauded upon the stand taken at the conference referred to (applause). No questions, other than those as to the arrangement for a daily supply, were asked, and Mr Hall moved and Mr Parker seconded that the Hairini suppliers accept the offer made for a daily supply and that the old local committee be re-appointed to make necessary arrangements. Tb.2 meeting, which had been a most happy one, concluded with a hearty vote of thanks to Mr Goodfellow, and confidence in the company, and a vote of thanks to the chair.