ARARATA DAIRY CO.

Hawera Star, Volume XLV, 5 August 1925, Page 8

ARARATA DAIRY CO.

ANNUAL MEETING. There was only a small attendance of shareholders at the annual meeting ot the Ararata Company on Tuesday Mr T. A. AVinks, chairman o i directors, presided. In moving the adoption of the report (already published) and balance-sheet, the chairman said there was nothing much of a controversial nature for suppliers to discuss. At the beginning ol

last season the directors decided to consign for two months under a guarantee of Bid per lb to Messrs H. A. Lane and Co., and later they contracted up to the end of January, and extended it to the end of Eebruary. 'lhe produce was sold on behalf of the company, and Is iniid out over the whole season. Stocks were taken in at 955, aiul on that basis the pay-out was Is but they realised from 108 s to 110 s, and an extra amount was made available, bringing up the pay-out to probably Is 7d. , , During the year the manager had struck trouble over some unknown cause, and despite all that he and Mr Grant, of the Department, who went out to assist in locating the trouble, could do, the problem persisted, and at length disappeared as suddenly as it had. arisen. It affected 600 crates, which were put second grade, and for which the directors had to accept 2s 4d less. The whole occurrence was most unfortunate, and had caused a serious loss. , . . The manager during the year had been able to secure a god yield, much higher than the previous year. The trouble with the "bug” had been a great worry, but it was no fault of the manager. The chairman referred to the decision of the Control Board to assume control as from August, 1926. but it remained to be seen if the control would be absolute. and if all supplies would be pooled, and an equal payment made to all factories in the Dominion. The Board, however, might allow factories to nominate the l firms with whom they would like to do business. He, personally. did not like the pooling idea, and thought the Board would find it had “bitten off more than it could chew,” and he would advise it to go steady'. He had had considerable experience at both ends of the business, and knew something of the complications that might arise. There were great difficulties in arranging disposal but there need he no worry m 'regard to finance. The Board had tacked the shipping problem last year without very much benefit, but this year results were better, and it was arranging regular sailings and deliveries. That was what was of most concern, because boats varied in speed, and some leaving three weeks after others might arrive at the. same time. Regulation of arrival iv as tho thing most required. In insurance the Board had secured a good reduction last year from 14s 3d to 9s, and this year it was 7s 3d for butter and 9s 9d for cheese As all were aware, a federation ot Taranaki factories had been formed during the year, for it was realised that only by combination of factories and volume of produce could they secure the greatest benefits. They had had several meetings and done a 'ot of work, and at all Ararata had been represented. A standardised balance-sheet, by which the operations of factories could be made clear to the ordinary working farmer had been drawn up by a- subcommittee —Messrs Salmon, Duncan and Lees —and had proved a particularly good job. In conjunction with the N.D.A. they had s ecured a uniform set of' articles of association, drawn up bv Mr Kennedy, N.D.A. solicitor. The old articles, framed 20 years ago, had become obsolete, and many things needed attention, for the old articles would not “hold water” in the law courts It ■was. he considered, a very fine sqt of articles, and had been adopted by several local factories. By this means a lot of expense would bo saved, and whereas the cost wotdc] probably run into £l5O to £IBO, if procured individually, each would receive the set far about £ls to £2O. This showed tho benefit of factories combining. Referring to the laboratory, the chairman said it could not he denied this had long been wanted, and efforts had been made for many years to secure such an institution. They had had very few dairy chemists in New Zealand. Now they had made final arrangements for a laboratory in Haweira, had engaged a sceintist and had rooms in the Old Technical School. They expected to get to work in about six weeks. The levy on factories was limited to Is 6d per ton as a maximum, and immediate advantage would be secured bv getting supplies of a standardised culture or starter, and the factories would have the services of a qualified scientist. Mr Fraser, of the Joll Company, had said his factory had lost a ‘ considerable amount through using a wrong culture, and if lie. had had a standard culture the difficulty would have been obviated __in a day. There had been ample justification in joining the federation. During the year, Mr Lundberg, who had been their manager for 15 years, had left. They all appreciated his good services, and .that appreciation had been practically expressed by a vote of £SO. This season very tempting offers had been received, and the directors had accepted the offer of 9 ; (d for the whole season. They had been first offered yrd to December, but had refused, wanting more, and eventually had accepted tile ni'Sc-inent-ioned contract, which would be equal to a pay-out of Is 8d or Is 9d. When cheese was available in stoic they couid pay out- Is 6d during the season, and possibly a little more. He said he did not know the exact reason for the offers made, hut it was said to be due to a shortage in the Old Country, and practically every producing part of the Northern Hemisphere. In addition he believed there was a new type of cheese milled in the manufacture of which New Zealand cheese was largely used. Thi s may have had an effect on the prices offered. The directors had considered tho matter, and had decided it was wise to accept the offer made. In regard to the balance-sheet, the chairman said there had been a reduction in fuel charges, hut speaking there had been an increase in cost, after allowing far the additional output. The freezing companies had made an increased charge. Repairs and renewals had been reduced.

Finally, lie said, the factory was in a good position financially. They had sofe out to .secure this because sooner or later they would have to face, the cpiestioii of a new factory. 'ihe position! was such that if uncalled capital was paid up, there would be a. balance of £4Bl to be distributed to shareholders. • They were justly proud of their work, .and he was confident there were few in so strong a position. The motion for adoption was seconded' and carried. Election of directors.—. Messrs. 11. Buckley, 11. Ctorkill and El. W. Lee were re-elected unopposed. Auditor. —Messrs. Lennon and Tristram were re-appointed. Directors’ fees. —The fees for directors were fixed at 15s per meeting. (Jhairman’s honorarium. —It was decided that the chairman's honorarium be made £SO.

Mr. Lee said that the sum voted last year, £2O, was- altogether inadequate, and when smaller factories paid more than the amount voted, he said they could well afford a larger amount. The chairman thanked members for the vote, >and- said he was attached to so many ouitside concerns that his time was largely taken up, and he had to get out of pocket expenses. That was all ho wanted. PAY-OUT AND OUST.

When the matter of auditors was being considered Mr. Lee said lie considered the .pay-out was not sufficient. The chairman said that overhead charges were higher than many because of their small output. Mr. Lee said that the cost of manufacture i'.o.b. was less than some, and stili they did not get a greater payout. Tho chairman said they could not compare their figures with those of the consigning companies last year. There had also been a lot of second grade duo to the trouble they had with in “gassy” milk. The secretary said that the grading in January had been bad in every company. Mr. Lee said that there was something wrong .somewhere, because they had \ less pay-out than some, with a. ieiss cost of manufacturing. They always seemed to be behind, and it was not because they had not tried to do their .best.

The matter then dropped. NEW MANAGER. The chairman said he should have mentioned the new appointment as manager. As they all knew, the board had appointed Mr Foy as manager from a list of 18 applicants. Mr Foy had been for eight years at Manutahi, and had good recommendations from the directors and Mr McQueen, the manager. He had taken firm hold of the work at Ararata, and in his opinion the company would he well served. GENERAL. In reply to a supplier, the chairman said it was difficult to say what was the cost of pasteurising, but probably .Id per lb of fat, and he doubted whether they could make cheese without pasteurising. A supplier: “You want to watch the milking machines. Everyone should have a copper in which to get boiling water. It was a bad policy to supply hot water from the factory, because in most cases the water was nearly cold when they got home.” The chairman said they had triedto get, an inspecter by combining with other factories, but this they could not. arrange. He was convinced tiiat an inspector would more than pay bis way. Larger factories which employed an. inspector would not he without him. Referring to the “gassy” milk, the chairman added that they had taken great trouble to locate the cause. Tn The case of his own :ier,d three samples had been tried) and found free, and' the fourth was full of the trouble, “as full of gas as hell was full of devils.” THANKS TO STAFF. The appreciation of suppliers was expressed in a motion according a hearty vote of thanks to the manager _ and staff, who had all given great satisfaction. It was decided to send a letter of appreciation to the staff. A vote of thanks to the directors and to the ©ecretary concluded the meeting. At a meeting of directors held subsequently Mr. T. A. "Winks wais reelected chairman.