EXISTENCE THREATENED

Wanganui Chronicle, Volume 80, Issue 133, 7 June 1937, Page 10

EXISTENCE THREATENED

FACTORIES MAY CLOSE SMALL SOUTHLAND CONCERNS INVERCARGILL, June 4. Mounting costs in the manufacture of dairy produce may seriously affect the existence of small dairy factories, as it is reported that a reduced payout from such factories causes suppliers to contemplate a change of factory or to cease dairying altogether. In Southland one dairy company has decided definitely to cease operations, and it is reported that one or two other factory directorates are giving serious consideration to their future. The Waikawa Valley dairy factory, which is a small concern with an output of from 20 to 30 tons of cheese a year, is the first Southland factory to succumb to the prevailing trend, and this company offered the factory', plant and other assets at public auction on Wednesday. The factory has served the district for a number of years, but at the close of the present season the directors decided that because of the increased cost of manufacture, and the tendency of some suppliers to change from dairying to other forms of farming, it would not be possible to carry on. Several other small factories in Southland are said to have considered whether they will continue to operate, and it is thought possible that some will close down, but no decisions have yet been reached. The secretary of one factory which has been mentioned as being likely to close refused to comment when approached to-day, but the impression was gained that the question was under consideration.