1932 - 1933

The following were in office at the beginning of this period:

DIRECTORS

• F. Cullen (Chairman)
• V. Judd
• J. Sterling
• L. Ramsbottom
• M. C. Tierney
• D. A. Finlayson
• N. Finlayson
• Mr. John Campbell (Manager)
• Mr A. B. Cox (Secretary)

The output totalled 884 tons; the payout, 8.53d.

Borrowing weather phraseology, a deep and wide depression extended over the whole dairy industry.  This unprecedented slump began in the season of 1930-31,  when the buying power of the Home consumer fell to a low point.  Stocks of  butter accumulated to a high level and, obeying the law of supply and demand, prices fell to a new low level.

In the season 1929-30, London prices ranged from 120/- to 160/-.  Within a few months they had declined to a range between 98/- to 122/- - a drop of twenty per cent.

The resulting payouts as shown by our Summary of Statistics, illustrates the unprofitable returns of these five - nearly six lean years.  The bottom was reached in season 1934-35 when suppliers netted only 7.96 pence per pound of butterfat.

The suddenness and degree of this price collapse resulted in a lowering of the economy of the whole country.  There was general dull trade, unemployment, reduction of wages, lowered interest rates.  Young farmers, who had not had time to build up reserve, suffered greatly.

The Dairy Produce Control Board had successfully marketed our produce during four years of buoyant prices, but the events of 1930-31 put it out of commission.  From the and until 1938, the industry had to do its own marketing individually.

Notwithstanding prevailing conditions, the Maungaturoto suppliers carried on, their numbers increased and likewise the output during all of these six lean years.

1934

On the 8th February, 1934 a contract was let to Mr. Thos. Clements for the construction of a new factory - the contract price was £6,134.  Built of concrete on up-to-date lines, even to white tiles, it seems as good as new, in this jubilee year.  It is recorded that the plant and machinery was hauled to the building by bullocks; probably this was the last occasion they were seen in the settlement.

The reader may here pause to wonder, and admire, the courage and optimism displayed by Directors and Suppliers who, in the middle of the worst slump of dairy history, committed the Company to a major and costly outlay.

1938

A notable event in dairy history took place in 1938, when the Government Guaranteed Price Scheme cam into effect.  Without entertaining into the sphere of politics, one can relate that the Labour Party romped into office by capitalising the six-year slump of produce prices.  The Party promised a stabilised return for dairy products which would be in line with production costs.

This was duly put into effect and, with some modification, continues in operation without opposition.  The concomitant measure whereby the Government became owners of dairy produce on arrival at ocean ports, likewise became operative and the State, as owners, also had  to undertake its marketing.

Fortunately for the Government, market values were on the upgrade as from the inception of the scheme and the Stabilisation Fund has had a yearly surplus.  The possibility of a call on the Consolidated Fund seems remote.

1933

In 1933 occurred a change of managers.  Mr. John Campbell retired after sixteen years of active work.  Mr C. J. Halligan succeeded and is still going strong after nineteen years' service.

In 1935 the Company acquired shares in the Ruawai Lime Company and also in Wilson Colleries Ltd.

1939

The year of 1939 saw electric power installed.