No malice
The principles which Chew Chong applied in his business would not seem at all out of date today. He succeeded in expanding the scale of his operations and eventually opened three creameries and bought a local cheese factory. As well as diversifying his business he bought a share in the Egmont Box Company, to control the price of cartons.
Chew Chong also introduced many innovative management methods. After deciding to open his dairy factory, he invited local dairy farmers to a meeting, and signed contracts with those who were willing to work with him, giving them a guaranteed purchase price for their milk.
But after Chew Chong had opened up the market for butter, some dairy farmers began to protest at his prices. One farmer who stopped supplying milk to Chew Chong was successfully sued for breach of contract. Chew Chong devised one of the first "share-milking" systems, whereby he allowed farmers to graze their cows on his pasture and milk them using his facilities, in return for supplying the milk to his factory. He also cleared forest land for pasture, and it was stocked with 200 cows.
In the 1890s the farmers declared that they intended to set up a dairy cooperative. Chew Chong was willing to sell them his factory and creameries, but his offer was declined. However, the dairy farmers did later lease the factory from him while they improved their own production facilities. From then on Chew Chong's dairy business faced stiff competition, and finally as his losses mounted he sold or closed his factories. His 10 cream separators were sold for scrap to a foundry. Thus in his late years, what had once been a thriving dairy business was closed down.
Brian Chong recalls his father telling him how his grandfather had loaned money to those dairy farmers "with the shake of a hand." Yet when they set up their cooperative Chew Chong did not get his money back. "But I don't think he bore them any malice," declares Brian.
Although his grandfather left no diary to record his feelings, support for Brian Chong's view can be found in events recorded in New Zealand's medical annals.
From 1891 to 1892 New Zealand was hit by an epidemic of pneumonic influenza, against which doctors were helpless. Chew Chong himself was infected, and used acupuncture to treat himself. After he recovered, he travelled around Taranaki Province giving treatment free of charge, and cured many people using traditional Chinese medicine.
One patient he had treated wrote to the New Zealand Herald newspaper to say: "I was so bad I could not rise from my bed and after Mr. Chong's operation I was able to rise and milk my cows and continue my usual work."
However, Chew Chong's methods aroused displeasure among orthodox physicians, and on one occasion a prominent doctor berated Chew Chong publicly at an auction market. But one of the listeners seized the doctor by his lapels and told him that Chew Chong "was doing good where the medical profession could do nothing."
Chew Chong's grandson Brian Chong (1st on right) plays his grandfather in a docudrama on the history of farming in New Zealand. (courtesy of Brian Chong)