KAURGKONUL DAIRY COMPANY.

Hawera Star, Volume XLVIII, 2 September 1924, Page 10

KAURGKONUL DAIRY COMPANY.

ANNUAL MEETING

The twenty-seventh annual general meeting was held yesterday, when there were about one hundred and twenty suppliers present, Mr. T. McPhillips (chairman) presiding. The ■■emaininp: directors were also present, Messrs. S. J. Bennett, E. T. Burke, 4. H. Christie, E. Long, F. Mourie, F. Muggeridge and IV. T. P. Wells. The secretary (A. Hannah) read the minutes of the last annual meeting and an extraordinary general meeting, which were adopted. The annual report was as follows: Owing to the unusually dry summer and the sudden drop in prices, the year has been a difficult one. but the balance in appropriation account, after allowing for a dividend at the rate of 5 per cent, on paid-up capital, which the directors recommend, provides for a pav-out on the estimated surplus at Is od per lb butter-fat. and as the market chows at the time of printing a. rising tendency, it is hoped that a further sum for distribution will be available. The store shows a profit? of £2393 10s 10d, which has all been appropriated towards extinguishing bad debts made in the past. The records showed that a total of 61.763.7 *-91b of milk, with an average of 4.096. was received, renre.sentimr 2,529.R401h of butter-fat. The cost of manufacture to f.o.b. ocean steamer was 4.51 d.

For cheese-making 58,099,0-i9ib of milk was 'used, the test being 4.05, and the amount of butter-fat 2.371.865 lb. The amount of cheese made was 6.419.9181 b (2866 tons). It took 9.05 ib of milk to make one nound of cheese, micl the yield of cheese per pound of butter-fat. allowing for 21 per cent, shrinkage, was 26391 b. For butter-making 3.664,7001 b of milk, with an average test, of -1.31, and representing 157,9741 b of butterfat, was used to make 183,5321 b of butter (81 tons). It took 19.961 b of milk to make one lb of butter, and the overrun was 16.17 per cent. The amount of whey butter made was 166.0961 b 174 tons). The total amount of milk received was 4.908,2161 b less than last year. The chairman, in moving the adoption of the report and balance-sheet, said he was not going to say very much about the balance-sheet. He said that last year was not one of great advantage to dairy farmers, both as regards quantities and prices. There were great difficulties in marketing of produce. . In the early portion of the season prices were good for cheese, making from 105 s to 110 s, but it fell rapidly and the directors were faced with the problem whether to continue selling as landed or whether to retain in store ‘and not sell immediately. They adopted the latter course, like most otnef factories, but the price instead of rising fell rapidly. It has since steadied up to about 92s to 955. They were then faced with the unfortunate position of finding that* the cheese was not keeping, they were forced to sell at whatever price they could get. They could not get the cool stores necessary to keep cheese m good order. There were some available for meat, but they were not the type required for keening cheese, and as the directors anticipated holding for only a short time, they considered the stores available would suffice. The procedure followed ontailed loss and expense in storage, interest charges and (shrinkage. But suppliers got a good price considering the position. Certain factories had been n.chis'c'r] to .soil, aik! no doubt all would lipye done better had this course been endowed. He naturally was sorry there had not. been a better pay-out. It was less than last year, but directors had done their best in a. season of general price dropping. He could assure them all that they had done everything m the best interests of the whole company. Referring to home separation, he said there had been a tendency for some .suppliers to go. to proprietary companies, and he could not advise too strongly that . thev should stick to the company. It would be foolish to join up with outsule concerns and expect to make a pront. If suppliers wanted home separation directors would make arrangements to take in cream. They had asked for the best offer for butter for the next three months, and then they would be prepared to take cream for hutter manufacture and pay all that is in it. Some years ago when butter ealised Is 8d all were going in for it but cheese proved to be the best pronosition. Last year butter looked likely- to pay out Is 7d and cheese considerably less, but despite the shrewdest forecasts that butter would he the best, it had proved otherwise. Butter was not likely to be so good as cheese, for outside supplies were coming in and other countries were coming largely into the field. Referring to the balancesheet, he said the cost of manufacture was undoubtedly high, and one main explanation was that the factories were not running at full, which accounted for an increase. Continuing, Iny gave particulars showing a very substantial decrease in liabilitiesoverdraft,' depositors and other items showing a very decided improvement. Tn J 921 the bank overdraft was 4.40,000, and they had depositors to the extent, of £II.OOO. Lonsdale’s account was then £IB,OOO. Since then the overdraft had been l educed to £19,000 and the depositors to £I2OO. Lonsdale’s account bar! been reduced to £15.000. This made the total tia unities, less by about £31,000, bavin* been reduced by £IO.OOO a year ff this continued it would he only a short time before they were in a good position. flic reduction was., of course, made by deductions in pay-out from the shareholders, but the ’sooner the eunpuny was in a good position the better. In Ihe course of a few years the company would he really flourishing and would be in a better position than ever before for them all. He considered the prospects for 1 he comjug season were healthy, and he nope.!. in conclusion, ‘that they '"Tru '■ pay-out. The auditor (Mr H. A. Lennon) read Hs annual report,. which set out more details of the position and gave vahiahle suggestions for the future policy of the company. In conclusion, he reierred to the cost of manufacture, and said that standardised balance-sheets xonld emmle absolutely reliable comm r iso ns to be made and would he in the interests of all. He referred to the wonderful growth of the industry, and said tne whole movement was a monument to the Government and to the past and present directors of companies. He strongly urged suppliers to take more care with their milk and io make n practice of weighing their daily supply. directors. p T m e retiring directors were Messrs iTv-n 811 l A - H * Christie, and T Mel hi Hips. Mr W. T. P. Wells re l •signed his position on the directorate, and Mi McPhilhps declined to accept nomination as he had left the district Un the chairman calling for further

nominations,;!;:-.question was asked by a - relations between the company and the Manaia Loan Company. Mr E. Long rose to make, a personal explanation, and after some short discussion he, with Messrs F. Muggeridge and F. Mourie, declared their intention of resigning. Many suppliers expressed keen regret that these directors should have taken this action, and deplored there being a split at the present juncture. Mr Sandford said that he felt sure suppliers did not consider their being on both boards any detriment to the company. On his suggestion a vote was taken on the question, and the voting was unanimously in favour of their retaining office. The three directors, however, decided not to cha®gja their decision. The chairman said 1 that the resignations when received would be dealt with by the board. For the three .vacancies caused by the retiring of directors and for the vacancy caused by the resignation of Mr Wells, who had 12 months to run, Messrs E. Burke, A. H. Christie, J. Landers, iuni\. and J. E. Young were nominated and declared elected. GENERAL. In reply to questions, the chairman said that the wages account was larger than last year because during a portion of the season buttermaking iiad been carried on, and this needed more labour. The genera! manager added that the same staff could have dealt with more output, and extra depreciation and other extraordinary expenses helped to account for an increase in cost of manufacture. He urged all suppliers to stick to their own company. It was decided, on the motion of Mr Parry, tr* recommend to the directors that a tally 0.l expenses of manufacture be kept for all branch factories. The secretary stated that the amount realised for whey butter had been £10,300, a little over Is 2|d per lb on the average. The chairman stated that the lorries had proved very useful, and were •doing good service. A suggestion made by Mr W. Sandford that the branch managers should carry on the work of the factories, and that a general manager was not required, met with no favour, and the meeting unanimously opposed the suggestion. On the motion of Mr Landers it was decided that reports should be prepared periodically for .suppliers showing how mattei's were progressing. The suggestion was approved by directors. After some further discussion the report and balance-sheet were adopted. AUDITOR, Mr H. A. Lennon was reappointed at a fee of £75 HONORARIA. The chairman's honorarium and directors’ fees were fixed at the same figure as last year. VOTES OF THANKS. The good work of the retiring directors, and specially of the late chairman, was enthusiastically acknowledged. Mr Landers said they had puked the company through a very difficult time. A vote of thanks to the ladies for their kindly assistance and entertainment of the company at lunch and afternoon tea was carried by acclamation. The meeting then adjourned.