16th December 1902 - May 1905

With 19 suppliers, factory financed and equipped, the Directors, no doubt, imagined that all the starting troubles were over.  More were coming, however, and Mr. Bailey tells the story:

"We engaged a Dane as manager at £150 a year - factory operations commenced and he became cross, crusty, and disagreeable to a degree and caused endless trouble - eventually the Directors decided to dismiss him - he left the district (at end of season) expressing his intention of engaging lawyers and commencing an action."

1902

On 15th October 1902, the Provisional Board resigned and the following were elected to the first Directorate:

• E. Ford (Chairman)
• H. Cullen
• R. J. Howard
• J. F. Knight
• H. Flower
• W. Cullen
• W. J. Bailey (Secretary)

Directors visited districts of Wairere, Whakapirau, and Kaiwaka with a view of enlisting extra supply.  This resulted in support from the first two named, but in respect of Kaiwaka "it became evident that the cartage of supply from that quarter, under existing conditions, was impracticable." This is a commentary on the road.

Here it must be placed on record that this infant company, greatly daring, pioneered the home separation system in North Auckland.

The Dairy Division, at this period, denounced this on quality grounds.  The Factory Managers' Association followed the Government Department and only one or two "outlaws" would handle the product.

The Directors are to be commended for their independent decision to accept home-separated cream and thus initiate a system which is now universal.

Results of the first season's operations were disappointing; the late start curtailed output; its quality was low grade, despite the reputation of the Danish buttermakers; there was continuous friction with the Manager.

The output had been shipped on consignment through Hall & Co. of Auckland and prices realised in London were less than expected - the resulting payout was only sixpence per pound of butterfat, less the half-penny for loan redemption.

1903

The Company sustained serious loss in the sudden death of Chairman Edwin Ford early in 1903.  Quoting Mr. Bailey again: "He was esteemed as a man of wonderful resource, energy, tact and judgement and had done much to promote the new industry.

Mr Ford's lamented death was a hastening factor to the subdivision and the sale of the Brynderwyn Estate, leading to the incoming of new settlers and a substantial increase in supply.