HAWERA DAIRY COMPANY.

Hawera Star, Volume XLVI, 9 August 1926, Page 12

HAWERA DAIRY COMPANY.

THIRTY-FIRST ANN UAL MEETING.

REVIEW OF THE SEASON. Seventy shareholders of the Hawera Co-operative Daily Factory Co., Ltd., were in attendance when the thirtyfirst annual meeting opened in the Winter Show buildings at Hawera this morning. . „ .. Air J. R. Corrigan, chairman oi directors, presided. “The past season from a production point of view has been a poor one for many suppliers,” said the chairman in moving the adoption of the repoit (pubiislicd on July 23) and balance-sheet, “and the total butter-fat supplied in milk shows a decrease of 10.9 per cent, compared with the previous season. .As showing the importance of production on farms and the effect of a poor season, it may be mentioned that to compensate for a drop in production of 11 per cent, the pay-out in any year would have to be increased by about 2Jd per lb butterfat, to leave the dairy farmer no worse off financially. A SELLER’S YEAR.

“The year has been a seller’s year, and the pay-outs of companies in this district vary according to whether cheese was sold f.o.b. or consigned, and if sold, as to whether the sale was for the whole or part only of the season’s make. At the beginning of the year offers were out for the make of cheese, to the end of December at 9ld per lb 1'.0.b., and your directors considered it prudent to sell the make to the end of December at this price. Some time later one of the company’s London agents commenced buying cheese, January to May make, and your directors immediately claimed the right to sell that- portion of the January to May make which was to bo handled by that firm. After protracted negotiations this right was established, and the position then was that the whole of the season’s output of cheese was sold at 9td per lb f.o.b. except two-fifths of the January to May output, which had to be sent forward on consignment. “In -making up the accounts, the unsold portion of this consigned cheese was taken in at 92s 6d per cwt, which at that time, looked like a realisable price. Since then, however, the cheese market has steadily declined, and it looks as if this figure will not be real ised. It is unlikely, however, that the estimate of pay-out in the report accompanying the balance-sheet will be lowered by more than Id. It will be noted that interest on fully paid shares amounts this year to £1604 8s lid, but the interest payable to the bank is correspondingly reduced, and it is to our own shareholders that it is desirable the interest should be paid. Suppliers should regard the amount of interest received as part of 'the factory pay-out, as I take it we do not mind whether the moneys received are share interest or butter-fat payments —it amounts to the same thing. CHARGES TO F. 0.8. REDUCED. ‘ ‘ The statement of the manufacturing and marketing account takes a slightly different form this year. - As announced in the report last year, the company adopted the standardised form of accounts approved by the Federation of Factories, and this permits of more ready comparison with other companies. By reason of this departure, the grouping of some of the expenses accounts is altered, and no comparison with the previous year is available. It is pleasing to record that the total charges to f.o’.b. on cheese have dropped from 3.97 d to 3.9.1 d per lb butter-fat. “In the home separation department the butter output has increased from 272 tons to 431 tons, and the payment from the home separation department for use of plant and buildings from £516 to £Bl9. The handling of cream under the scheme the company has inaugurated is beneficial to the company in that certain indirect charges have been apportioned as between cheese and butter-making, and the company’s plant is kept in full operation. The average pay-out for all cream received during the year is Is 6LI per lb butter-fat. The auditor has examined the accounts of both the homo separation and cheese departments, and has stated in his report to shareholders that strict justice has been maintained between cheese suppliers and the suppliers to the home separation department. FINANCIAL POSITION IMPROVED. “The financial position of the company has improved by £2IOO during the year, and this is in accord with the policy of gradual reduction of the liabilities of the company determined by unanimous resolution of the shareholders. During the year expenditure has been curtailed and repairs accounts show-a decrease of £1263 compared with tho previous year. The company’s buildings and plant are in an excellent state of repair, and the policy of renewing buildings, tank stands, and other work in concrete is being adhered to. “The Dairy Control Board proposes to institute a superfine grade for cheese, and this innovation has caused cheese factories in this district some concern. It is considered that without the installation of pasteurisers this company would got very little cheese into the superfine grade. At a meeting -of the Federation of Factories held recently, a resolution was passed urging the Control Board to make an investigation over a whole season to determine the value of the cheese of various grades before deciding upon the institution of the superfine grade. Your directors are in accord with this resolution.

“The dairy laboratory has completed its first season’s work, and although the equipment was not available in'time to enable the scientist to take a hand in the manufacturing troubles of the early spring, nevertheless much useful work was accomplished. The scientist lias shown himself capable of applying his scientific knowledge to the daily manufacturing operations of the factories, and he has earned the confidence of our factory managers in consequence. NEXT SEASON’S PROSPECTS. “The prospects for the coming season cannot at present be said to be bright. Usu.illy at this time of tire year indications of the prospects are to bo found in offers of buyers for butter and cheese, but with the coining into operation of control of our produce on September. I. the buyers are not operating. In addition, owing to a variety of causes, both butter and cheese markets are depressed. Possibly there is no reason to be unduly pessimistic, but my personal opinion is that there will be a much lower pay-out for the coming season.

'lt will be a good thing to have control actually in operation. There is no doubt the giving of twelve months’ notice of the intention to assume control was a mistake. It has allowed the opponents of the Control Board to create dissension amongst producers in New Zealand, and consumers and the trade in Great Britain. Probably when the control machinery gets into operation

these doubts and suspicions will be allayed. ‘ ‘ Shareholders will have noted the decision of the Bank of New Zealand to institute long-dated loans for farmers at 6 per cent, with 1 per cent, sinking fund for repayment. This scheme will be welcomed by farmers, and it is an indication of the realisation by financial institutions of the difficulty and expense which has beset farmers in re-arranging their short term farm mortgages. I believe this scheme will make for more stability amongst the dairy farming community, and the Bank of New Zealand is to be commended for its enterprise. “A further payment of 2d per lb butter-fat on the supply from January 1 to June 30 is being made to-day, and this brings the pay-out for the season to Is Sid, including the amount applied in payment of shares,” said the chairman in conclusion. He formally moved the adoption of the thirty-first annual report and balance-sheet. Mr A. Sc-hneebeli .secon-dod. (Proceeding.)