MELROSE DAIRY COMPANY.

Hawera Star, Volume XLVIII, 11 August 1924, Page 10

MELROSE DAIRY COMPANY.

$ ANNUAL MEETING. The twelfth annual meeting of the Melrose Co-operative Dairy Company, Ltd., was held in the secretary’s office on Saturday, when the chairman (All*. T. Geary) presided over an attendance of about l(j shareholders. The directors’ report stated: The cheese unsold at the end of the financial year has been estimated to realise 85s per cwt. on the London market. On this basis, and after providing for reserves to meet the requirements of the bank, and interest on shares, the estimated pay T out for the season will be Is 4d. \Ve hope, however, that the final realisation of our unsold produce will enable this estimate to be exceeded. Statistics for the past season were as follow: Pounds of milk received, 4,964,565; pounds or butter-fat, 188,548; average test, 3.798; total charges (including repairs, interest on shares and depreciation] to f.o.b. ocean steamer on butter and cheese at per pound of butter-fat, 5.658 d. Used for cheese making: Pounds of milk, 4,908,359; pounds of butter-fat, 186,165; pounds of cheese made, 485,048; pounds of milk to one pound of cheese, 10.12; pounds of cheese from one pound of fat, 2.60; average test, 3.792. Used for butter making: Pounds of milk, 56,206 pounds of butter-fat, 2383; pounds of butter made, 2622; butter made from each pound of butter-fat used in the manufacture of butter, 1.1003; average test, 4.23; no unsalted butter made.

The chairman, in moving the adoption of the annual report and balance-sheet, congratulated shareholders on a fairly successful year. The past season had been a most trying one in many respects. A fairly good spring had been experienced, but during midsummer the weather had been very dry, with the result that the milk supply had fallen considerably The cheese market had shown many fluctuating prices, the highest the company obtained being 109 s 6d, and the lowest 83s. When all account sales came to hand they anticipated that the average price for the season would be somewhere about 925. The company’s agents had been given a free hand in the matter of selling the output, with the above estimated result. Many factories in the district had held their cheese at Home, but in most cases this had proved unsatisfactory. The production this season showed a decrease of approximately 20 tons of cheese, the butter-fat received being 11,0001 b less than last year. This decreasing supply had been

a cause of anxiety to the directors, as it was only by the factory running to its full capacity that the overhead charges could be kept down and a satisfactory pay-out assured. They would, no doubt, be pleased to know that the company had decided to take in home-separated cream, the directors realising that this was the only satisfactory way of competing with the proprietary concerns that were being established in different parts of the district, and which were a serious menace to the different co-operative factories. In connection with the receiving of home-separated cream, he would like to mention in passing that in the near future they would" have to consider the matter of keeping their factory going throughout the whole year. Continuing, the chairman said that the manager bad mentioned that in some cases water had been added to the milk supplied.. This, said the chairman, was a foolish practice, as it only meant paying more for labour and fuel and getting nothing in return. Also, during one period, some suppliers had taken milk to the factory that was not quite up to standard, but he was pleased to say that that .state of things had been rectified, and the parties concerned had later brought along milk that was equal to the best sent into the factory. The chairman stressed the advantages of an inspector, mentioning the advantage which the Normanby Company had in working their ,yats to time as the result of the employment of an inspector. Speaking with, regard to shipping, the chairman said that at end of their last financial year all .c-heese and butter had been shipped, but this year at the end of June there were 267 crates of cheese. 21) boxes of creamery butter.

and 55 boxes of whey butter unshipped. This produce had been taken into the balance-sheet on a conservative basis, the cheese at 85s and the creamery butter at 150 s. All consignments sold since balance date had realised over 90s, so that they anticipated to exceed slightly the estimated - pav-out They would notice, said the chairman, that total charges to f.o.b. were shown in this year’s balance-sheet in a different manner, the figure of 5.658 per lb hutter-fat in this year’s balancesheet including all charges up to f.o.b. ocean steamer. This was fairly high in comparison with other companies, and also with their f.o.b. charge last year of 5.12. However, he would mention some of the causes of the increase. In fuel - there was an increase of L6O, owing to more coal being used and less firewood. Repairs showed an

of £IOO, but that was due to installations of a permanent nature, which would not lie recurring. Depreciation had been a heavy item, but it had been written off to meet the bank’s requirements. However, it was strengthening the position of the company. The control levy of £22 for half the season was a new item, but it would be heavier next year, when a full season’s levy would have to be paid. Hates, interest, and insurance, £174, was practically all accounted for by provision being made for the payment of interest on frffiy paid up shares, as passed at the last annual meeting. The decision with regard to the federation of dairy companies was also mentioned, the chairman giving it as his opinion that the move would be of great assistance to the comoanies concerned. The chairman also said lie would like to place on record the valuable services rendered to the company by the late secretary, Mrs. Page, and in addition he would like to express appreciation ol the excellent way in which the new secretary, Mr. Salmon, was doing his work. He also wished to express his appreciation of the assistance by his co-directors and the staff. Mr. 1). J. "Williams pointed out that by following out their policy of consigning the company had come out best during the season 1922-23, but had lost on the season just ended. A shareholder said that during the last 33 years the men who had consigned had won 22 times and the men who had sold had won 7 times. The report and balance-sheet were then adopted. Asked whether there were any offers about, Mr. Cl. Williams said that the directors had been offered Is 61 d. but they had been advised by their agents not to take it, as the price would lie higher Mr. Liichwark considered that anything move than a reasonable price should he taken by Hie directors. Tie would take Is OJd. The chairman mentioned the manner ' in which Argentina was turning from

meat into dairying, and the surprising way in which Siberia was coming back into the business. It meant that New Zealand would have to turn its attention more to cheese. The chairman also referred to the attack which was being made on the co-operative factories. If suppliers were going to leave the co-operative concerns they would find after the co-operative factories were closed down and sold out that farmers would not again be ready to put their names to bank guarantees to start cooperative concerns once again. Messrs G. AV. Williams, W. Dunlop, and G. 'Wallace were elected to fill the three vacancies on the directorate. Mr. H. A. Lennon, in conjunction with Air. W. J: Tristram, was elected auditor. The chairman’s honorarium was fixed at L2O, and directors’ fees at 15s«per meeting. Air. G H. Buckeridge addressed the meeting on lines similar to those taken by him at the annual meeting of the Ararata Dairy Company on Friday, and the meeting closed with votes of thanks to the secretary and staff.