1903  -  1904

The opening of the 1903-1904 season arrived; the pioneering spirit, which is pure optimism, had overcome disappointments and with hope renewed, the second stage was entered upon.

Mr Henry Cullen was now Chairman and held this position for eleven years.  Mr. Henry McMurdo joined the Directorate as representative for the Whakapirau Suppliers.

There was also a brand-new young Manager from Taranaki, a district where co-operative dairying was a great success.  The manager's salary was £180 and the secretary was "passing rich on £30 a year."

The settlers of Matakohe, Paparoa and Ararua, having evinced a desire to supply, Director McMurdo and Manager Campbell were deputed to visit and report regarding an offer to sell a small butter factory owned by Mr Frank Pheasant of Ararua.  They reported that the factory was obsolete, but would serve as a creamery and that the field of supply was good - there was the problem of conveying the cream supply from Matakohe Wharf to the Company's factory to be solved.

Mr. Henry Cullen, however, reported that the shipping company that served all of the Kaipara Harbour undertook to transport the cream to the factory landing.  The Pheasant factory was purchased and supply started to come in.

This promising plan was defeated by the failure of the shipping company to carry out its promise-only a few consignments arrived at irregular times and finally they ceased to come at all.  Buttermaking without refrigeration at Ararua was the only recourse, and the enterprise ended with a considerable loss, the extension being abandoned.

It must be written that this is the one and only error of judgement on the part of the early Directors on record - it was a case of trusting the Kaipara Shipping Coy. when they were well aware of the unreliability of their time-tables.

A reasonably good season was experienced - the supply was augmented from the Brynderwyn settlement and Wairere and from Mareretu.  The whole output was graded first grade - the new manager one of the "rebels" against Government opposition and the prevailing prejudice, advocated home separation and later, induced the Board to discontinue whole milk supply.

Consequent to the collapse of the Matakohe-Ararua extension, the farmers in that area decided to form a new company with a factory situated on the salt water at Whakapirau.  This led to the loss of the Whakapirau supply in the following season.

The output, having been consigned, was subjected to a serious drop in market prices toward the end of the season which was not anticipated in fixing the payout; the Profit and Loss Account disclosed a net loss of £627.

The Directors had now to learn at the Annual Meeting of Shareholders that they had erred not selling the output at the beginning of the season when prices were good.  They were expected to be prophets or to possess the second sight as to the ups and downs of the London market.

This annual gamble continued until the season of 1917-18 when war conditions brought about collective sale to the Imperial Government at profitable prices.  This stability, however, lasted only four years.