DAIRY FACTORIES.

Hawera Star, Volume XLVIII, 20 August 1924, Page 3

DAIRY FACTORIES.

ALTON. ANNUAL meeting. About twenty-live suppliers attended the fifteenth annual meeting of the company, over which Mr. A. J. Gibbs (chairman of directors) presided. In moving the adoption of the report and balance-sheet the chairman reviewed the operations of the past season, and said he was pleased to be able to meet shareholders with a very satisfactory balance-sheet. He was pleased also t-o see a- better muster of shareholders, and urged all to make some sacrifice to be present at annual meetings, even though it was a busy season of the year. The quantity of produce had been well maintained, being equal to the record of the previous year. In addition the quality had been very good, and though not.- quite up to last year’s standard, it had been very satisfactory. The grade points had been a. little below, 91.82, but it was unfortunate that grading at the port was not absolutely on a par with the reports irom the other side of the world. Reports had come thence, “body a trifle too firm,” and showed it was somewhat brittle, dry, and firm, and did not cut up to expectations and to the liking of the customers, who wanted a more waxy cheese. He had asked the manager why this was the case, and he had reported that the pasteurising had been a- little high, and in some cases it had been salted a little high. He could not get high grade figures unless he pasteurised to that- standard. Had he made it a little lighter the grade would be reduced. He would remind suppliers that they would be able if the milk supply were better in quality to make a good cheese without such high pasteurising. It was up to everyone to bring milk in better condition. He knew that in muggy weather it was difficult, but if everyone made the effort an improvement could be secured. It would make for a better ratio and would be more generally satisfactory. The proportion of cost of manufacture to f.o.b. showed a slight increase. . This year the cost was 1.55 per lb for cheese, and last year it- was 1.47. -The cost of manufacture from milk-stand to London was a- little less per lb. Taking the whole charges into account, the cost worked out at 2.74 per lh, and last year 2.77. a saving this year of .03d per lb. ' This was brought (ibout by a reduction of freights on cheese. Speaking generally, most of the items were a little larger. Last year shipping was not satisfactory, due to irregular departure and arrival of boats, especially to the West of England. The delay was due to the departure and loading at three-or-four ports in New Zealand. This was a detriment, because documents got Home before goods, and had then been taken up at once, causing a charge for Intel est. this was due also to some boats being faster and catching up the ■ slower. Several boats dischargino- at the same time about the middle oF the season brought the price down very considerably. He said he hoped tho Control Board would make a bio- improvement in the industry generally by arranging that the produce arrived in the Old Country at regular intervals and thereby seoure a better price At the beginning of the year 110 s was secured, hut after a few shipments the price dropped to 82s, and veered up and down several times. It was disappointing to see the market vary so much, and it was therefore difficult to sav what they would get for final realisation. Dairy people believed the control would secure more regular priees I he average price on the London marl ket had been 925, whereas last year it was about 110 s, and two years ago 89s to 90s. It had not been a bad average, but it was wise for suppliers generally not to look for much more. .Tn regard to the store, the chairman said the business was more satisfactory 7 than it had been. The turnover had been £13,000, and the nett profit £650, about 5 per cent, on the turnover. Overhead charges amounted to between o and 6 per cent., and with the nett profit totalled .10 per cent. Dealing with the policy for the future, he said that there was a- balance of assets over liabilities of about £4OO. They were on then- feet now, and the reserves put away before the slump had been very useful. They had been hard hit, but two profitable years had helped and he would like to see profits put aside as a reserve till the assets Avere free Then, if there was a profit it could he given back to suppliers as rebates rather than cut nriees to too narrow a margin, a policy of which lie did not approve. Li answer to questions the chairman said that repairs and maintenance were pretty heavy, but were iustified and Avere good policy; that the levy paid to the Control Board was £6l 19s and aa’o uld be more next- year: that exchange would he increased ' when the ]ielcl i' l cool store, valued at L2o4d. was shipped; that improvements to roads had been £79. tanks and coils £45. boiler £3O. naintiii"' £25 ami tAvo new; scales £165. ' v ' The motion for adoption w-as seconded by Mr. A. B. Al agger id go and earned. DIRECTORS. M hen the chairman called for nominations a supplier asked if objection to signing the bond for the store Avould act as a bar. The chairman said he could not refuse to let a man stand for that reason. ,r • Metcalf said they should not allot shares to anyone refusing to c-arrv his share of the load. Mr M.uggeridge said they could not refuse shares to anyone supplying miik, and they must not coerce, as the question referred only to the store. Avhich -some might consider a wrong policy. Mr. Janies Gibbs said no one could he expected to take more liability than that attaching tn sharer,, and this was a question of law, not of articles of association. He referred to a suggestion that some wished cheaper goods, while they would not sign the biTnd. I ho chairman said ho Avould not consent to a- decrease in profit at the store. They had suffered one big loss, and were not. going to risk another. „ J. Gibbs said lie hoped those relerred to would lie good enough sports to now sign the bond. Mr. T. I'oreman said he was one of thosii who signed all hut the last bontf,

Avhich he- considered unnecessary. This store was being run in conjunction Avitli the factory, and if there Avas a loss he AA’ould have to stand more than most others. The signing of bonds and joint and seAcral was Aery dangerous, and ho Avas prepared rather to allow ahalfpenny per lb of fat to be deducted each year so as to clear and allow rebates to be given. Profits should be transferred to reseive.

Ihe chairman said the balance-sheet shoAved a profit on the store. Before the slump there avpi-p stocks totalling' £6409, and this Avas reduced to half when the slum]) came. The stock was a reasonable amount now, and had been turned over about eight times during the year. Mr. loremaii said that 1 per cent, should have been paid in reduction. The chairman said that eA-erything Avas done that wa-s considered requisite. Last year they carried profits to' r-e----seiAe, and this AA'ould be done in future. They could now pay £509 to redemption account. Messrs Sutherland. Mugcreridpe S. Ad lam, J. Bourkc. Y. Adlam, find T. Foreman Avere nominated for the three vacancies on the directorate, and on a ballot being taken the first three were declared elected, after a tie twice for the third place. BONUS FOR YEAR. The chairman then announced that a bonus AA’ould he paid on the succeeding day. bringing the final payemnt up to Is 5Jd, or perhaps a. trifle more. STORE ACCOUNTS. Air. J'. Gibbs said that last year he had moved to haA r e store accounts kept quite separate, and a statement made of assets and liabilities. On his motion a strong recommendation to the directors Avas made that separate statements he prepared and circulated Avith the balance-sheets. PATEA MEAT WORKS. The chairman mentioned the question of the Avorks, and said that jjilton had gn 7 en strong support to the proposed new company. This had not materialised, though he considered it a. great proposition, and iioav it Avas- proposed to form a buying account- and finance stock purchases. He considered the farmers had not looked far ahead in failing to float the company. He hoped that all AA’oulcl agree to join in the neAV proposal. HONORARIUM. On the motion of Air. Hodge, the chairman’s honorarium Avas fixed the same as last year. The inoA'er and seconder expressed appreciation of the work of the chairman, and said it Avas a privilege to Avork under him. The chairman thanked members for their appreciation and for the vote. He was ahva-ys pleased to avoj-Ic for the company and he Avould continue to give his best. THANKS. A hearty A’ote of thanks for good AA’ork Avas passed to the manager and staff, avlio ahvays Avorked Avell and turned out a good article. This concluded the business and the meeting then adjourneUl. At a subsequent meeting of the board Mr. A. J. Gibbs Avas re-elected chairman. THE WAVERLEY COMPANY. / ANNUAL MEETING. The 16th annual meeting of the Waverley Co-op. Dairy Company Avas held in the Toavii Hall supper room on August 14th, Mr. AY. Macfarlane presiding OA’er an attendance of about 25 shareholders. The anntial report and balance sheet were read. The report stated that during the season the directors, after careful consideration, -decided to instruct the company’s agents to hold certain shipments of cheese, owing to the loav prices, and to release as the market impiwed. It Avas soon apparent that most of the factories had given similar instructions, with the result that buyers, knowing the accumulations, bought only for actual requirements, but notAvilhstanding this drawback the market was steadied, as the large shipments arriving at that time Avould certainly have prices much loAver had they been placed on the market- on arrival. The balance-sheet shoAved a gross profit of £2427 15s 9cL and after Avriting off £156 far depreciation on building and plant, the net balance was £2271 _ 15s 9d to lie carried to the Appropriation AccounL, Avhich the directors 'recommended to be disposed of by a payment of 2d per lh for bntterlat supplied during the season, male, a total amount paid Is 5d per lh. The chairman moA'ed that the report and balance sheet he adopted. Seconded by Mr. Southeomhe. The chairman, in speaking on the balance sheet, said that it compared vc*ry favourably Avith that of other factories along the coast. He hoped that the Dairy Control Bill AA’ould justify its existence this year by controlling the shipping. If that Avere done, a better price AA'ould he assured during the coming season. The report and balance sheet A\ 7 erc adopted. There being no nominations to fill two vacancies on. the directorate, Messrs Macfarlane and Southeomhe were re-clectecfe Mr. J. D. ($. Thomson avus re-ap-pomted auditor at the same remuneration as last year. It aas resoh'ed that the directors’ fees he 10s per monthly meeting. On the motion of Air. Alec Morrison seconded by Mr. C. H. Southcombe. it Avas resolved that the manager, secretary and chairman he granted the usual bonus. Air Nic-holls (manager) thanked the shareholders lor their courtesy and the assistance he had received 'from the directors during the past season fbe chairman then asked for anv suggestions that AA’ould assist in successfully running the affairs of the company during the coming season. Air. Aletealf'e asked if it"avus intended to join up with the Federation- of Dairy Companies. The secretary reported that a meetmg Avas being held in Haweni. on Au»"st 2olli , and the company had been asked to appoint two delegates to be present. All Stewart said that A’ery iittl l Avas known as to the objects" of the federation. Tie suggested that the matter be left over for the present Art. Watkms said that he considered that the proposed Federation was a move m the right direction. He moved that, the company join up Seconded by Mr.' Aiken’ On the motion being put to the meeting it Avas lost. Mr Sontheombe moved a heart v r° f * l hnnk l R 1 t 0 the manner nml stall tor the able manner in Avhich ihmhnd carried out fheir duties. The meeting then terminated.