N.Z. DAIRY ASSOCIATION

Waikato Times, Volume 87, Issue 13272, 30 August 1916, Page 2

N.Z. DAIRY ASSOCIATION

The annual meeting ed' lb ' shareholders of Ihe New Zealand Hairs Association was held in lb.' km-'s Theatre, Hamilton, tins morning. Mr 11. K. Pacey, chairman of directors, presided. and there was a large attendance. Tho report and a sununarv of Ihe balance-sheet have .dr. aiiy l.eeu published. In moving the adoption of Urn report and balance-sheet Mr Pacex said: I desire to draw attention to a few points ©f interest. An Increasing Turnover. "The Association's turnover for the past year was CSTieHj as \!d. VoU will be interested at knowing that the Association is the biggest industrial institution in the Auckland province, ami even roinpariim witli the whole Dominion, it would be included in the first half-dozen largest, probably, indeed, within Urn first, three, it is. I think, the second largest dairying company in the world, certainly not less than the third largest. The accounts which were adopted by the annual meeting which met six years since show r/J'.M.sTl lis ."id as Ihe liirnovir. The increase in turnover of £580,50:{ Ids ml per annum in six years is worthy of Ihe Vssocialion, and perhaps, I should add, of lis splendid body of co operative suppliers, whose enterprise and industry, louolher with better markets, have made such result possitde. 'l'o further emphasise Ihe comparison, I would add thai llm Itirniver for llm ■■ ng season will likely approximate CI,H»l),()l)t), due ~-:.. m partly to increased mil jut, pally !■■ better marketing ; msp. els, md ! i m N -- departun s in Ihe or-.uiis dam of tb. business. Possibly a f< vv cows will be transferred lo a rival ilioti during the i'.ailinu season, which cows were milked for lII.' \ss..fi lib.ll dlir itir; the past season. In so pany absolute uiianiini!:- c"i h-'f II; !■'' pxpected. The oiillook, howey. r. is encouraging, for we shall likely u in from the other organis.iti.it) a .|o::en cows for each one which We shad lose. Indeed, probably the proportion of increase will be even arealer. Many of our shareholders who during the past year or two senl their supply elsewhere have "returned home again.' some with expression of profouml satisfaction, l-'rom this il will he judged that the esprit de corps of the Association was never better, and that our prospect of unity and expansion was never brighter. The Association's payments for hutter-fal have never shown up so satisfactorily by comparison. Our butter department has made average payments of Hi.7:id per lb butterfat for all the year round supply direct to the central factory daily froiii September to March, which is at least equal to the best in the Dominion, and much better than most, while the record payments for the Waikalo made by our cheese department arc a source of gratification lo the suppliers thereto, and ,w<' a rebuke to Ihe unwise utterances and unworthy actions of some. The quality of the \ssociation's product has again won the cordial praise of ils agents in Ureal Britain, and as further testimony in (lie same direction, I niiirlit mention that during the year one of |ln* Association's factory managers, Mr \V. Y. Kirkman, won the Wedtlell i;up, which is the most coveted trophy open to dairymen at this end of the Dominion. Another of our factory managers, Mr C. .1. Parian.', won the Silketmrg Cup, in addition lo which some half-dozen other prizes were won by the Association's sc\cr.d factory managers in flutter and cheese classes. A Satisfactory Staff. "The Association has reason |o tie proud of its factory managers. They are an efilrieut, conscientious, and enthusiastic company of men who are as keen in promoting the Association's interests as any shareholder could possibly he. I tender to them, and lo the other members of the staff, my thanks for what they have done towards the company's splendid success during the past, season. I also acknowledge with grateful (banks the splendid efforts put forth for the Association during the past scroti by its agents in Croat, Britain. More Care Necessary. "In connection with the t'Uality of the Dominion's output of dairy produce, 1 sometimes think that too inn !i is left to the managers of dairy factories. Suppliers, or some ol them, should recognise their respoiisibdi'y more than they do. and help in maintaining the Dominion's on the world's markets by upholding, and even improving, the quality of raw material, whereas in some districts the quality of the milk and cream supply is distinctly inferior to what it was some years since. To my mind this is the most distpiietinu feature in connection with the Dominion's dairy industry. More science, greater skill and bettor factory plant are all the time being brought to bear upon the industry, and these should result in the production of butter and cheese of even higher standard of quality than formerly, hut instead, the extra science, greater skill and improved machinery are too often merely used to correct delects in the raw material instead of securing the all-round improvement in the quality of the finished article, which is Beaded if New Zealand is to enjoy the •premier place, which might easily he hers, bv reason of the natural advantageswhiclr she enjoys. After the war there will be an even stronger demand lor really choice butter at premium rates, but competition will be increasingly keen between poor quality butter and margarine, and that quality of trade will not be worth bothering with. Siberia, United States and other countries will supply all the ckeese of indifferent quality which the British market will need; but there will be premium rates for New Zealand cheese if the Dominion produces the ftrtitfe of the right quality. There wiU

A PROSPEROUS YEAR Turnover of £872,375

NEXT YEAR'S EXPECTED TO REACH £1,100,000.

be plenty of room on top both ol the ' uti.r and cheese markets, and n we occupy that p'a e we shall prosper, but ■ we content ourselves with an iulerior i lace, and with indifferent quality, we shall lose much, both in pi e ai-e ami money. I hir dest'nies in ihi., lespect ire in the ''amis ot the | rnducor.s. il they decide to Use -tedder crops, let I hem select the most suitable, and Iced I them carefully to the stock, and thus | avoid feed taints in the milk ami cream I supply. If suppliers prefer home separation they should wash their machines regularly, otherwise they will lose much of the butter-fat in the skim milk and spoil that which is saved. It tbev must use a milking machine, it should be installed in a suitable buildin...; and be kept absolutely clean, ethervise it becomes the gravest possible I menace to the industry. Aerators and coolers should be ill much more general "so. and greater care should be taken in transit both of milk and cream. I am not stressing these points because I think ry.v siipulie'' •!- worse than those ol "'her eomoanics. On the i, mean the distinctions " en during «'... oast seasn indicate thai we ::'<' ! doing at least as well as our neighI hours, and better than most. 1. bowJ e-er. am anxious that ihe Association | - he-Id reach and maint-'in im< zenith i ■■ . a means of permanent sue. o*.-., and I | in-:-,- the i n-ii'ii'i■ati.-n of err -am- ■ 'vis •■ itb their faciei \ n anag a - to ' :! a! end. An Urgent Problem. '■The necessity lor increa ed -are a: ' he produetain . ml of t he husines , ■-. | i, cognised as the urgent problem :>l- ! most throughout the l)nmin : < n. It I w as one in the important t .c-idei - at a,Us w Inch prompted I he it'iiiil'i to amalgamate the <\-> : \v interests oi the | Plinth Auckland distri t 5,,;..,. months : iaee. The tact ihii' e, n.iK-iiliMK .»! ' a kind oeculiar to >ci" : , Vueklaml! ■•i\-es alternative means o! ill-- • -uia. <>i\ ; ii|k and cream h -. cade -on e ■ ■ liei-s imlill'erelil to oi'aii". (.-i-idera-tarns, and thus the eons,. >.'. hi- h lays I the L'olden egg is ihreatt" i d : "id, j acal'-ama! ion '•'. as re tumised h\- dl ,e I the best means ol effecting i ■■''orm it this noint. Other ,Hrea< advama.p's \ add have I Il a:' ; li'e<l hy i Ibiiina! ill:'' overlaiining. I nth in maun .- rure and n ticket intr. « hit - ! 1 » i: '' ' '•' ''''"" •riliilted tens , ■ i|i () |MttMii ! o 1 ' "Ulhl*per annum to the nrotlm-er-. This lidbh and this boom is denied tb, m for -he lime being as the amalgamation ne'iitiatiells tailed, but ihe '•'■i-\ has taken root ill the mmds oi manv ol the mere thought nil sir, oliel -. and I have imt jiiiv ,bmtit bin that amalgamation will come bv 1 In de' el'lni'" ; , 11 ol the | Mediieei s themselves. The 'legotiaI I ions show ed that the pi p.isii ien w as a prael ica.ble one. and \\ hen i he w ei" hi ■<■ the producers' intiuenee is nut behind it im sectional or individual in•e! ests w ill be able to pceveni it. A Personal Matter. "I'd haps a personal " ad bm e may | be appropriate. Vy desire w a--, am! is. to help forward I he nmv "it. and not to hinder it. for I re'-ognise. at leas! as clearly as anyone do s, its eiimiiioiis advantage to i he t rodocei s. When m\ i ersonal posit ion came umii r re\ iew, I declined to take • - ub mdma te pesitieti under the pronoa >| organisation, but agreed to resign a v , onne •- thai rather than I'lejmlice the success ol sn use'iil all ainabramat ion movement. This point '' ;>s a ade '''ear during the negotiations, h was a source of gratification to me to tin.! that almost all interests desired thai I should continue my present insition under the ecu' regime. Indeed. I otib. knew' o> etle dissent le'l" . I | 'ev i'i, ~,-t, Is w . id-! agree, and if •' v- old I'd-, i a-are r!i ■ ■nvement. I should be v ibiae ;,> ,„...., fiafe with the Associa' ion to dior< right nut. I had not mfcnd»d reierriii" -o this personal position, but re'-ent b-m----"enings make it desirah'e tb-, : 1 should do so. Prospects of Amalgamation. "As amalgamation dees not seem bnniediately likely, a movement has been revived to secure some ol tile advantages by the adopt'nii by the sevenil companies ol a uniloiin -vsiem • f grading cream, and by a"lee:neilt in dealing with seme of the diffb'iiltios. as is done in oilier districts. As a temporary policy su'h agreemen l would ,'■' mm-h towards solvin" seme of tb" nrotilems. Meanwhile. I am "I'd to note that the Hon. W. I). S. .AbDorialtl. Minister I'm- \gricnlture and Mr D. Cudtlie, Direeio' o f the Da ; rv Oivisbiu. are sneaking in the necessity '."■ improvement, and "i the i'Merest of Ihe industrv as a whole. I trust they n ill fellow on with In I' till '\f ion. Important Changes. "Dining the year some important changes have been made in connection with the Association's affairs. These include, first, a new arrangement governing the incidents of payment for butter-fat. which has made possible for the first time a direct com- .. parison. The results of this new policy, and of the comparison, are entirely satisfactory and promise to he permanent. Second: Decision to make all distributions to shareholders ' and suppliers on a butter-fat basis instead of part on share dividend, and " nart on butter-fat basis as before. ■ Third: Provision for the allotment of 'C issue shares, which are indemnified against depletion of their par value by any charge < < account of closed cream- ] erics, thus i moving ihe 'lwgev' which was raised lo frighten timid ones. Kourth: Arrangements to resume more shares subject to tho provision of the 'Dairv Industries Act." First attention will l>o given to the resumpj tion of shares from persons who have sold out and left our territory; 2716 shares have been resumed during the past season. These matters have been reviewed with the shareholdersuppliers in our several centres, and have had almost unanimous approval. Thus, it is not necessary for me to | elaborate the proposals here . Election of Directors. "I would take this opportunity of > congratulating Mr J. T. Young on his - re-appointment without opposition as " Upper Waikato representative upon the I Directors' Board. Mr Young has worked i well for the company in his own district - and elsewhere, and it will be a source of ■ great satisfaction to him to enter upon t a second term with the unanimous conr fidence of the Association's shareholders. In the Lower Waikato Mr A. M. i Barriball has had to contest his seat, I but be has been returned for a further I term,-and-will bo cordially welcomed I back bj his fellow directors. In saying > this 1 do not disparage Mr Joseph | Hemry who contested the seat with Mr

Barriball. Mr Henry's long interest in the Association, and his wide experience would have made him a welcome addition to our Board. My only regret is that we cannot have the help of both the candidates. Producers and Consumers. "Prices have ruled much higher than usual during the past season, and there lias boon much talk and criticism about the extremely good times which the producers are enjoying, and about the exploitation of tho consumers. 1 recog-ni.-e high prices have made problems for the consumers, and I fear in some cases possibly hardship which I, for one, should bo glad to relieve if 1 knew how to tin it. Talk about exploitation however is quite unjustifiable, especially .vhen indulged in by politicians and other-, who claim to be leaders of public (ho'.ight, and whose general opportunities leave little justification for ignorance of the .acts. The price of butter ' n the local market at present is not nearly equal to export values after allowing for the cost of preparing the butler for [he local Made, and marketing same. This unfortunate position has obtained for some time past, and he- n.ji''e -i lions problems for some of the companies which, like our own, have a considerable share of the local trade. .Manifestly we cannot compete successfully for suprvfy if wo sell oui butter for les.s thajfnur neighlvours get for theirs, and dijfiiegratioii would be the penalty for such a. course. There is another phase of the question which sometimes ,dnos not gel as much consideration as it merits. Present high prices do not represent as far a.s dairy farmers are concerned the fabulous wealth which would be represented by the difference between present and ordinary values. The co-i ol labour is very much higher at present than usual. Manures, fencing wire, benzine, etc., are almost nut ol sight, while practically everything which the farmer has to purchase is up in price to an inordinate extent, tn say nothing of extra taxali' >i). Seine product rs who occupy Sarin- w h ich iliev acquire i in ol her • lavs, and which' :w. re-.st.nabh well .'ev. loped may lie a'-ie to a.ill a little to be it a'iie 1 iug ; i tb. ir nest. Tin -e ".. ■ \ rv ho are di vi loping lit-\" iarm- , .:.! -. ii no ae.ai'"-:' tiie ~',! j .;•..'.!,-i,i >} Post War Problems, •1 e ••-.; r nitnt-r,.- wit.b nm-bat. d ;,'.;;;.! u t "^L''\,i '^'iul\.team:,'. It Ls, however, gra; i.> iug „, s e a!i i-1 everyday .me" mg .•:- titan., ;, ■ .:-.;e;*UMir ■!. ;.<■ gv [be Allie.s in il ■ i!c.ij#Bft|F.v. : :r, ami ihe l)o----.liiiui.- ha\-tfsfei*mi .or ; ; i.ie at the ! ai •. Lea ihe « lid will come, bill I l.i ... , v., ;'., 'a . :'!• : '.i a:im:: ■ mt 't- ■:■ . I ii eh! 1... ■ ' J tor it in .»:::.■ i a- !., ioie lb, :,, , -.. i, ib.mgh i: meant l.i • : p. '.. .■ ior : ".;: t ■!• lai, and in that v. i-!i \ ..;i u ill ai! I in. Meanw bile maiiy p: -• ».;..• Jlfmlem- are I,Miming ahead. ! i. ■ v. .: M'Vib lea veiv dilierellt nlae< in a anv rc-oe.-.s, <■■.- ! iru-i it will'be a b;; : p'-t.-e! Thete : . reason to think that iii'iu - ; : ial!\ (■>:• i Ibnain will lint! iier-eli ,;,,i : !'e_ ['lie v,;ii. W, have been by j i-. imliie. biii titider the necessities ed : o! gani-nti in has had H- jdiiv. Thi -•!• and i■; her inriiienees lia ve ini reast'd ihe indiisi rial tTricieiit y of oui' people to tin extent which defies comptitat ion. I he.se new influences will com inue in tlominate the industrial life ni our Kmpire, the producing power of w Inch v ill be pertuanen; ly and enormously increased. New standards ol living are ;i |mi being evolved, and will likely endure under the new conditions. Setter Prospective Markets. "The- ■ and ot her ir.iiuenees pe-sihly aided : ;. riscal changes promise bigger, and, pro'ia'.lv . etna markets than we ha\ e ordinal i!y ett.i iyed, lor our Dominion's prin ary products. Aftt r 'he war it w ill |irob;»!ilv take a low years lor the Kmpire to abstorli the bibo.ir V. hicll Is 111 pi'i'sent being tlivertetl 10 warlike pursuits, and during the transition period there may be an easing o! the position, but the g< neral tendency will. I think, cert.duly be upwards. Other cotisitlei-itions will aid these, ci !i-e.p'ent depletion ot herds and fleck- in tin count lies w bich are i lie ■■ ones ot eai nago. have been enormous. I'be demand on other eounttios. too. supplies i fere, and very main ear • nnist i lapse before ihe' world's hi rdand tin -ks are up to the necessary -tandartl ol reasonable plenty. It. is diflic: it to -ay wlietbei butter or chet ... i. ill ; i ofi; im •-, under !be new conditions. They must ho'b see lower •>i-!ce- idem those which now prevail. Knr r!ie immediate present-, however, and while the war lasts. orobaMv eheese w ill have the advantage.but !"' ,; ' cheese and be-tor will rule oxtranrdinarilv high, and the o'llinneod value of calves and nigs will do much to reduce the tliii'erenee between the two on a Mett oomneri-nn. nought in tlm Northern Hemispbeve will add. fo the , rice of both products. . Butter and tffieese. ■'lt <s worthy of note-that the principal cheese producing countries are not menaced by war. Their production n! cheese, has been increased, while the tendency has been for their butter production to ; dl. The butter-producing countries, ■ a the contrary, have been subject to serious wastage in these respects, and normal production cannot be looked tor for many years. Even in Denmark it is reported that the herds are being seriously depleted. It is said this is parly due to the unprecedented price offered for meat, and partly to the greater difficulty in obtaining artificial feed, upon which the Danish dairymen are to a considerable extent dependant. Certain it is that Danish butter is much less plentiful than formerly. These conditions must influence the future to an enormous extent. Whatever may be aid as to the, respective prospects of after and cheese and other prod' s, it is certain that the future pro(T tion of all primary products in the Auckland Province will be enormously in advance of that of any other part of the Dominion. Auckland is surely coming to its own, and the undisputed prospect is that the primary producers will make the City of Auckland the largest and most important commercial centre in the Dominion, and that to an extent altogether beyond anything which most of its citizens have yet realised. Shipping Facilities. Of course, all conditions must be subject to the maintenance of regular .shipping facilities. In this respect we are not through the woods by anv means, but the Government and its officers with the Overseas Shipping Committee have done splendidly thus far, and the outlook is not desperate, but whether the results will be a little better or a little worse than during the past two seasons Cannot be exactly estimated. "Gentlemen, I have pleasure in congratnlating yon upon the satisfactory contents of the annual accounts, and of the directors' report, and I more their adoption. v ':*■

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