THE DAIRY INDUSTRY.

Hawera Star, Volume XLVII, 16 September 1927, Page 6

THE DAIRY INDUSTRY.

XGAERE DAIRY COMPANY. A SUCCESSFUL YEAR. The thirty-fourth annual meeting of share-holders of the Ngaere Dairy Company was held yesterday in the Ngaere Hall. Mr. 11. C. Taylor, chairman of directors, presided over an attendance of about sixty, among whom was included a small attendance of ladies. 'The report, balance-sheet and statement of statistics (already published in ‘‘The Hawera Star”) were taken as read.

THE CHAIRMAN ’iS REVIEW

In reviewing the operations of the past season, the chairman said that while the .prices received had, on the whole, been rather low, he thought, •,. ...ips, they had a igood deal to be thankful for in coming out as well as they had. He had not heard of any other cheese factory in Taranaki beating the Ngaere factory pay-out, and possibly none would reach their figure. As to the high payment- of the factory, he mentioned that their success was not due to anyone particular factor, but was the result of a combination of circumstances, among which the principal factor was the high'standard of efficiency attained in the factory. .Mr. Woods, the manager, had made a special study of the elimination of waste, and of the art of producing a high yield of the finest qualitj\ Another factor would be found in their low manufacturing costs. The company’s extremely sound financial position and also the large increase in output, had greatly assisted in obtaining what, under the circumstances, must bo considered a highly satisfactory result. The increase in .production of 120 tons of cheese, or 19.61 per cent, over the previous season, was a record in the history of the company. This inicrease had been brought about partly by the advent of fresh suppliers. Better farming methods and a highly favourable season were, however, the principal factors. He must congratulate the manager and staff on the excellent quality maintained throughout the season, 89.26 per cent of finest cheese being manufactured. Only 2S crates of second grade were made out of a total ■of 732. tons. In this connection the shareholders must be congratulated on the general good condition of the milk when delivered at the factory. There was no doubt that good sweet milk was one of the principal factors in obtaining good quality and a high (Suppliers would certainly be studying their own interests by roofing in all milk stands. There were quite a ■few occasions every spring when large quantities of rain water got into the milk —sometimes as much as three or four hundred gallons. The experience of the company was that, on every such occasion the day’s make of cheese made a drop, sometimes as much as three or four cheeses —a loss of £lO on the day’s make. This was a matter worthy of serious consideration.

The chairman pointed out that a loss of .01 in yield over the season would amount to about £IBO to the company. In conclusion lie tendered the thanks of directors to the manager and staff, and his own personal appreciation was expressed towards his fellow directors and to the secretary (Mr. T. 11. Penn). Mr. Taylor then went on to say that on the 30tli inst. the company would payout an additional Id per lb. fat over the whole of last season, thus bringing the total pay-oUt up to Is 4Jd to date. On the present consigning policy of the company, advances of Is 4d per lb. would be paid out this season. In dealing with the statistics, the chairman remarked that the test was slightly less than that of last year. The financial position was sufficiently sound to permit of a deduction of id per lb off share capital. 'The rate of depreciation on buildings had been reduced from five per icent to two per cent. Included in the assets side were items of £6l for tar-sealing the road round the buildings and £36 10s for a new cheese press. There had been a considerable increase in tue wage sheet, due in a great measure to the large increase in production and the operations of the Arbitration Court Award. The cost of production (£3 Is 9d per ton) compared favourably with other companies. A saving of £l4O had been effected by adopting road cartage by contract. There was still a liability of £2OO on the butter plant, which was being held over until next year, when prospects might be brighter. Much had been said about the payment of show expenses on behalf of the company’s manager, but in the opinion of directors the expenditure was justified by results as reflected in profits accruing from local sales. The manager’s ability to make good cheese was advertised by his many show successes and local consumers wanted that cheese. The sum of £ll3 represented the profit on local trade during the year, in spite of the fact that a fairly high price was asked for the goods. In answer to Mr. M. B. Fryday, the chairman said the icost per ton of production was 18s 2d by the use of electric jjower. He could not say definitely what amount was saved by using electricity as against wood and coal. A supplier remarked that the rate of depreciation provided for on buildings was too low, but the chairman held that two per cent, depreciation on cement buildings was sound finance. In regard to travelling expenses, the chairman said nothing in this respect had been covered up or hidden under other heads. His co-directors and he spent considerable time and travelled a lot in the interests of the shareholders for which they received no monetary consideration. In a number of instances they used their own ears and made no charges. The chairman informed a questioner that the cheese supplied to shareholder customers at the factory at lOd per lb. was in most eases show cheese, though many preferred a good second grade cheese.

In reply t'O a question tlie chairman said a. substantial saving was effected in the purchase of requisites purchased through the National Dairy Association. In reply to Mr Fryday, the chairman said the action of the management in avoiding as far as possible the payment of overtime rates had been the means of a considerable saving. On the motion of Messrs H. C. Taylor and F. E. Bocock, the report and balance-sheet were adopted. ELECTION OF DIRECTORS The ballot resulted in the- deletion of Messrs W. Wickham and J. N. Pratt, Messrs IT. E. Nowell, a retiring director, and A. W. TTedman were the other candidates for office. Mr. J. H. Thomas was re-elected auditor. CHAIRMAN'S HONORARITJM. Mr. Fryday’s motion that, the chairman's honorarium and directors' fees

be reduced to £SO per year and 10s per meeting respectively, evoked lively discussion and a succession of amendments, these being that the honorarium be £7O with travelling expenses, £75 without expenses and finally £75 for the honorarium and £1 per day directors’ fees. The last amendment was carried on the voices.

REDUCING THE DIRECTORATE

Notice of motion by Mr N. B. Fryday, that the articles of association be so altered as to permit of the number of directors being reduced from seven to five, was seconded by Mr. J. Thomas and defeated, after discussion, by 17 to 47 votes. A three-fourths majority was necessary to carry the proposal. Mr. Fryday gave notice to move in the same direction twelve months hence.THE lIAWERA LABORATORY. It was decided that the company support the Hawera Laboratory on the existing basis of levy for a further term of three years. The mover, Mr. J. Thomas, referred in terms of high praise to the valuable services rendered to the industry by Mr P. O. Veale, the Federation’s scientist. CONSIGN OR .SELL. The chairman asked for an indication of the shareholders’ ideas on the question of whether the company should sell or consign. The almost unanimous opinion was expressed that the company should adhere to the invariable policy adopted before the advent of the Dairy Control Board, that of consigning. THE BGMONT BOX COMPANY

The chairman said that as the annual meeting of shareholders of the above company had been taken in committee, he was not at liberty to divulge to a questioner what had there taken place beyond assuring shareholders that everything was being done by the Box Company to safeguard their interests, and that a further meeting to review the company 's position was to be held in February next.