HAWERA DAIRY COMPANY.

Hawera Star, Volume XLVIII, 29 July 1924, Page 5

HAWERA DAIRY COMPANY.

ANNUAL MEETING. ' The annual meeting of the Hawera Co-opeajrtive Dairy Company was continued yesterday afternoon. In some further remarks on the operations for the year, Mr Corrigan reterred further to the steps being taken to combat the home separation, and assured suppliers that by sticking to the company they wouid get absolutely everything that was in the business. He alluded also to the matter of overrun, which was, he added, practically the crucial point in the whole question.

Some little cross-discussion took place with Mr Go with and Mr Staiulish on the question of home separation and the method of dealing with it. 'J'lie chairman said that those who supplied separated cream to the factory paid Jd 1 b of fat fcir the privilege. The. directors had to start tnis work in order to combat the private concerns. and were naturally obliged to start on similar lines.

Mr Duncan made a, brief explanation of the difference in pay-out to suppliers of home separated nr cam and of whole milk for butter-making. He said that with, butter valued at Is (id [>er lb f.o.b. the pay-out to the supplier of home separated cream should ne about ltd per lb butter-fat higher than the pay-out to the supplier of milk. The reasons for this are: —(1) In the case of home separated ciream the loss of butter-fat in separation is borne on the farm, consequently the cost of manufacture of the butter is less than is the case when milk is supplied and separated at the . factory. (-) The overrun in butter-making from Home, separated cream is greater than in buttur-making from milk supply. With regard to testing it will be realised that in milk and cream testing by 1 bibcock system it i,s impossible to get the same result .as is shown by clieriiical analysis for butter-fat content', and in testing cream the difference is more marked than in testing milk, as the percentage of butter-fat in cream is so much higher. This results in the overrun in a home separation factory being higher than in a factory making butter from milk supply. if the payment for butter-fat i%i each case could be compared on the basis of per cow or per acre it would be found that the supplier of milk for butter-making who’ got a pay-out of Is 6d per lb butteir-fat would be as well off as the supplier of cream who got Is 7f-d per lb butter-fat, conditions in each case being equal. /

Mr Laurent continued, by his own experience, the loss on the fainn in separating. The home separating supplier made that loss and should get a little more in pay out. The chairman agreed, and said that if a man supplied a co-operative factory and got lAd per lb less he was still doing as welL as the home separator. QUESTIONS. In reply to Mi; McKenzie, the chairman saici that records of the liomc separating m the factory were Kepi strictly separate. s ro i*n or. w ills he said that the July butter made would give a pay-oui ot is Vd to cream suppliers, and in his opinion milk suppliers would get ultimately an equivalent -resitlt. To Mr Gawith, he explained that the farthing per pound paid by cream, suppliers would qe placed- to reserve, and assist m paying' the company’s commitments. To Mr Laurent he explained that the item £9B at M’haireioa was for repairs during the year, cheese vats, painting or premises, etc., and at Glover Roaa the expense incurred under the same heading included water service and drainage. Mr Gawith made reference to the day labour system of doing big 'work, and argued that it was preferable to clo such work by contract. He referred amongst other things to two totara tanks and the cesspits at the main factory. in reply to Mr G. Wills, the chairman said that the repairs and renewals at Glover Koad included whey tank and necessary work during the yeair and other plant. MATE OF EXCHANGE. Mr Haseltine referred ito the increase in the amount paid ior interest exchange, which had increased from £953 m 1922 to £1455 in 1923, and last year was £392t). . The chairman said that the rate of exchange m the first yean* was at par, and rose m 1924 to x.'l per cent, on drafts and 30s per cent, on surpluses sent out from ijondon. . He assured tne questioner that they saved wherever possible, and had tried very hard to have reductions made in rates. DAILY CONTROL BOARD. In reply to M;r McKenzie, he said the Dairy Control Board were not- yet operative, amt consequently were not responsible for the storing of some cheese in London which had gone.had. Certain factories were responsible. The cheese- had been in the ordinary, not the cool, stores. The Hawetra Company, he was glad to say, did not suffer one penny of loss in this way. Continuing, he said that the Dairy Control delegation were at Home now going into the question of marketing, and very soon full information would he available and every detail connected with the industry. They had been in Canada and America, .where no doubt they had learnt much, and he looked forward to very much improved conditions of marketing. Referring again to questions re daily control, the chairman said that' at present there was nothing compulsory, and that so far they had taken over only the shipping business from the N.D.A. The latter was really a trade affair dealing largely in dairy requisites, and for its services each factory paid only a nominal fee. The motion for adoption of the report was carried. AUDITORS’ REPORT. The report of the auditors made, inter alia, complimentary reference to the action of the* directors in dealing with home separation, and expressed the hope that all companies would do the same. They commended their forward policy and suggested that others might follow their lead. TRIBUTES TO MANAGER. Mr Parker suggested that an independent tester he engaged. The suggestion met with no support, and members generally spoke in praise of the work of the general manager (Mr C. H. Bowman). Mr Eustace said he tested his cows himself and compared them with the factory figures, and stated he was certain they were correct every time. - The chairman said they had all perfect trust in Mr Bowman, -and if they had not this trust they should not employ him. Mr Staiulish was of the opinion they could get no better man than Mr Bowman, and said that it was no use considering the question while they had a man like him. Mr A. R. B. Pierce, speaking as one who had had practical experience,

strongly endorsed- these .opinions, and said the manager was good'and capable. The chairman said he was pleased, to get- the feeling of the suppliers. He believed in trusting-employees, stating that only so could thev get the best out of them. ' HONORARIUM. It was decided that the chairman’s honorarium be the same as last year—--150 guineas. The chairman thanked members, and' said that his interests were the suppliers’. He added that while away on his Parliamentary duties he kept closely in touch with the secretary, and often communicated with him by telephone. He could assure them he had been able in W ellington to do the company great service by expediting business at the metropolis. The di rectors’ fees were fixed the same as last year. ' NEW DIRECTORS. After the notification of result of the election the .elected directors briefly addressed the suppliers. •' Mr A. L. Campbell thanked suppliers for returning him at the top of the poll. He said he had had experience of a directors’ duties, and that he was in favour of consigning generally, hut would never let a good offer go by without serious consideration. Mr H. E. Johnson thanked suppliers for the renewed expression of confidence in him, and assured them lie would, as in the past, continue to give of his very best for the company. He considered the federation of factories a most excellent move, and would strengthen the hands of directors in the matter of research work. He approved of taking home separated cream so as to compete with outsiders on their own terms. Mr W. H. Reynolds thanked members for his re-election, and promised his best service for all.

Mr J. Eneas Campbell thanked those who voted for him and those who did not, for, he added, he would be able to L°i * ie^ter after, his farm than if he had been elected. He said that with the extraordinarily good conditions in the Dominion, if suppliers brought in the -best of milk in good condition, the company could put out the .best product in the world. In reply to a supplier who asked if he would sell-■■if an-offer was made of 10jd for cheese, he said he would be guided by existing conditions, and hoped to see a more stable Government at Home, when conditions would improve. ’ Mr H. Barr said he had always done nis best for the company, and would’ continue to give help wherever possible. THE COMING SEASON. The chairman said, in 'reply to a question, - that no offers -had ‘at the present moment been received for the coming season. BONUS TO WORKS CHAIRMAN. It was resolved to pay the same bonus as last year to Mr W. Reid for his valuable' services as chairman of works. Mr Johnson and Mr, Laurent paid a tribute to Mr Reid’s .services, and said the company owed a lot to his good work.

A motion recommending the difec tois to have all work done by contract other than by day labour, other than that of manufacture, was after some little discussion defeated, only mover and seconder voting for it. In the course of the short discussion the chair--sa id that all the work done under the control of the company had been most satisfactory, and had come, out v^ l 'J reasonably- in cost, rln regard to the drainage work done at the main xactqiy, he stated.- that-.this- had 'to'.bedone at the shortest as other A* 1 ? directors’"risked'"'heavy Imts. He said the' tank about winch exception had been taken was not-finished, but that type was giving'the utmost' satisfaction elsewhere. Mrs M. J. Goodson explained that she was concerned with-the drainage works, and stated that the work had been very urgent and admitted of no delay. . Thfi chairman said the company’s buildings and plant were kept well and lip to date, and that officers of • the Da fy Division had stated that Hawera and Pihama u’ere the most efficient factories on the coast. ' VOTES OK THANKS. Hearty appreciation of the work of directors, secretary and staffs was expressed, and a cordial vote of thanks passed to them all, and to the chairman tor presiding at the annual meeting.