HAWERA DAIRY COMPANY

Hawera Star, Volume XLVII, 6 August 1928, Page 11

HAWERA DAIRY COMPANY

THE ANNUAL MEETING IMPROVING FINANCES. SUCCESSFUL YEAR REVIEWED. An improving financial position and the highest pay-out since the year before tne slump were .shown at the thirty-third annual meeting of shareholders of the Hawera Co-operative Dairy Factory Company, Ltd., held in the Winter Show Buildings, Ha.wera, to-day. The attendance numbered, approximately 80. . Mr. J. R. Corrigan, chairman of directors, presided, and opened the meeting with a brief review of the year’s working. •‘The past season from a production point of view has been a, fairly good one, and in regard; to price it ha® been very good,” said the chairman. “The butter-fat supplied in milk shows an increase of about two per cent compared with the previous season, and the total butter-fat supplied to the company an increase of just about the same percentage. “The company’s chee.se output was consigned during the year with the exception of the cheese afloat and' in store at June 30, which was sold f.o.b. The directors considered that the prices obtained, 9|d per lb for the cheese afloat and 9ld for the cheese in store, were too good to refuse, and the sale enabled the company to make its final payment to the supplier®' oil July 20. The pay-out of Is 9.06 d. is the 1 highest made by the company since the year before the ‘slump’ season. “The issue of fully paid 6 per cent shares, equal to id per lb butter-fat. has been made as usual, and interest on shares provided for absorbing £2007. It is interesting to note that 87 per cent of this interest is paid to supplying shareholders, and only 13 per cent to dry shareholders. Interest paid to .the hank is correspondingly reduced., and it is to our own shareholders it is desirable the interest should he paid. YIELD INVESTIGATION.

“During the year an investigation ha® been made with the assistance of biie laboratory into the cheese yields at all the company’s factories, Inis investigation lias shown definitely that there is' a point beyond which “yield can only be got*at the expense ot quality. The. yield for the year just closed is 2.686, compared with 2.b4J for the previous year. It is to be noted however, that there has been a slight falling off in the quality of the company’s cheese as shown by tne grading results' and reports from London. and there is no doubt this 'falling off is due to the incorporation of more moisture in the chee.se in an endeavour to obtain the highest yield. “Thus it can be said that if ‘yield alone is made the objective the quality of our produce will and any temporary gain will be quickly lost in the general lowering of the standard of quality of our cheese on the London market. The, directors have met jMi. A J Mills, principal of the firm' of A. J.’ Mills and Go., Ltd., which has handled a portion of the company s output for a number of years, and Mr. Mills states definitely that he has perceived a slight falling off in quality of New Zealand cheese during the season just closed. ' “It will he the policy of the directors to endeavour to maintain and improve the quality of onr cheese, and to aim at securing the best yield which can be got consistent with this policy. Tire director® have had complete period statistics before there month by month, and the investigation into cheese yields which h-as T>cen made "ba-si dc--raoustrated that the company’s man - agers are doing uniformly good l work and are obtaining the best possible results from the milk suoplied to them. “In regard to the proposals for purchase of whey outwit submitted by Dr. L. Harding, the directors have nothing further to report. So far no further communication has been received from Dr. Harding. “Full use has beeu made, of the services of the dairy laboratory during the year in the checking of whey skimming, analyses of cheese and examination of milk samples, and the investigation into cheese yields already referred to.

EXPENSES REDUCED.

“It will be noted that expenses- up to f.o.b. have dropped from 3.56 d to 3.29 d per lb butter-fat. This; drop i-s accounted for by the manufacture of casein from separated: milk' for the months July to September, and lower cost of certain items of expenses, notably cheese requisites, crates 1 and boxes, bank interest, and export levy. As has been mentioned previously, an outstanding feature in the reduction of the. company’s costs’ has- been the lower overhead charges due to the- handling of ai considerable quantity of home separated cream. “The .payment from the home separation department for use of the company’s buildings and plant amounts to £1336. The results in the home .separation department are satisfactory, and the pay-out- for the season averages Is 6d per lb butter-fat. The quality of the butter manufactured shows' a decided improvement, due to the cream grading regulations a-n-d the 'differential payment according to grade. “The company’s buildings and- plant have been maintained in good, order, and it is the directors’ policy to beep them in that state.

MR. VEALE’S EXPERIMENT. “During the year Mr. Veale’s report on the result of the Tokaoracheesemaking investigation has been issued, and it has attracted much attention. It appears- to me that the report contains .two distinct features — firstly, the technical and' statistical results:' of the cheesemaking which have been prepared in such a careful and thorough- manner, and, secondly, the conclusions- of Mr. Veale -and his recommendations, which, of course-, are an expression of his personal opinion based on the results of the investigation. Now, whilst many of as may disagree with Mr. Veale’s conclusions and recommendations, I think there will be general agreement on certain points, namely: “That the investigation has- provided a mass of unique statistical data regarding cheesemaking -which will he of value when matters relating to cheese manufacture are under discussion in New Zealand or any other part of the world. ‘ ‘That there undoubtedly is a problem in the cheese industry in connection with the continually increasing high milk tests, particularly in the autumn. “The n-ro-hlem presents difficulties, and it will -not be- wise to attempt any hurried remedv. Meantime the fullest discussion should be welcomed, in order that the New Zealand cheese industry should develop on sound lines from an

economic ufcJ well as a quality standpoult. I understand the Dairy Division of the Department of Agriculture has been conducting experiments in regard to standardisation of milk for cheesemaking in an endeavour to find a remedy for Die excessively high testing milk supplied in certain periods in certain districts for cheese-making, and no doubt .some Itead from the department will be given .at the* right time. Thu question is a. serious one, and the greatest caire must he taken to avoid mistakes. .Mr Yeale’s report is amply: justified by its demonstration of the difficulty which lias developed in con-; nection with chee;se-malcing, and I believe that eventually the best BolultioM; will be found.

“It gives the directors great pleasure to report that the financial position of the company has improved _ by £3300 during the year, and this is in accord with ’the policv of gradual reduction of the liabilities of the company, determined bv unanimous resolution of the shareholders!. J.t is clear the company will be out of debt well within the tim-e forecasted- bv t-h© directors wlieii tile financial proposals were submitted to the shareholders. FAY ODE ABLE OUTLOOK.

“Prospects for the coming season nook good. The statistical) position ot cheese is all in favour of the producer, and the Canadian shortage for export of from ten to, fifteen per cent, is not likely to be completely made up by the prospective increase from New Zealand. The butter market looks good, for fresh markets are continually opening up. Omy a. few years ago both America and Canada, were competitors of ours on thp British markets, but to-day they -are purchasing largely from us to satisfy the demands of their own population. Germany is also a large buyer of our butter. . , ‘‘The ‘meat war’ which has been on between rival groups in England for some, time, and which was responsible for very low prices for beef, is oyer, and much higher prices are now ruling. It is a fact 'that the price ruling for beef has a direct bearing on thp price and sale? of our cheese. “In view of all this, I think the New Zealand dairy producers can look for-, wand to good prices for some time to come. The prices of all primary products have been better this year than I ever remember, excepting for the abnormal prices of the war period. In view of the high prices ruling, one would, naturally expect it would be reflected in trade to a greater extent than appears to he the case. JPhe only reason I can suggest is that the cost of production is too high. On to-day's average price for land and commodities and allowing for the inevitable, serious depreciation of herds, and 1 for -taxes and interest. I estimate it cosfbs about Is 4d per lb to produce butter-fat. This being so, I would 'ike to stress the advisability of farmers avoiding the “booming” of land by giving prices’ above its productive vailuie. “I would like to close by thanking the staff for the 'help they have given the directors in bringing about the. satisfactory result of the year’® .operations, and my fellow-directors .personally for their assistance and support at all times.” The chairman moved the adoption or the report (already published) and ballan co-sheet.

Mir W. Itoid seconded the motion. The report and balance-sheet were adopted without comment from the meeting. . TT The report of the auditor, Air G, H. Suisted, was. also adopted without comment,

ELEQHON OF OFFICEBS.

The retiring directors, Messrs A. L. Campbell, jti. E. Johnson and W. H. Reynolds. were re-elected unopposed. Mr C. H. Suisted was le-eleated unopposed' as auditor. i-hia directors were voted the same reiniunenaition as previously, and tin? c-haiinnan wa,s also voted the mine remuneration, a motion proposed, by Mr F. Gnwith to, the effect that the amount be reduced failing to' find sup port Other than that implied in, the motion finding a, seconder. The remuneration of the chairman of the works committee was a. I ,so fixed in accordance with, the previous- wale. At a meeting of directors held subsequent to a general meeting Mr Corregan ' was re-elected unopposed as chairman.

VOTING BY PROXY.

<s In accordance with notice Mr F. Guwith moved as follows: “That the articles of association of the company be amended to provide for the abolition ot representation of voting by proxy at meetings of the company.” * The motion included the six machinery clauses necessai-y to the proposed amendment of the articles.

“The objective of the motion is the abolition of proxy voting. “I move it in the firm belief that i am acting in the best interests of the company and that it is a progressive step,” said Mir Gawith who after remarking that progress in any enterprise was usually achieved after opposition had been encountered referred to former opposition given the principle of his motion and gave the. opinion that the system of proxy voting was in direct defiance oi the principle of co-operation. He contended that the system had proved inequitable in its results and that it had prevented persons from acceding to requests that they should stand for election to the directorate. Mr M. A. Mackenzie who seconded the motion considered that the abolition of the system would have the effect of giving a fairer indication of the wishes of shareholders.

Mr J. lb Jarvis explained that the system had been introduced by the founders of co-operation in the dairy business. He considered their work should be remembered by those sharing its benefits to-day. Mr W. V. Parker supported the motion.

Mr Corrigan pointed out that no obligation existed for the use of proxies oy anyone who did not wish to do so hut the system was provided for in the Companies Act ancl was only fair to those who were entitled to vote hut were unable to bo present at the particular meeting. In Mr Corrigan’s experience lie had found no unfair use of proxies" nor could there be while the voting requirements were complied with.

Mr A. It. Campbell considered that proxies were necessary, but that no one should hold more than three. Mr R. Smith (Fraser Road) moved as an amendment that the number of proxies held by one person be limited to three. This was recorded by Mr J. G. Jarvis. The amendment was lost, only L votes being recorded for it as compared with 40 against.

The motion, being one to amend the articles of association of the company, required seventy-rive per cent of votes in its favour by those ini attendance at the meeting in order to carry it. There being 79 voters present it therefore required 60 favourable votes for its adaption, but on being put to the meeting was lost on a show of hands

when the aves totalled 37 and the noes 23. An address dealing with the system of grand herd testing was delivered bv Mr E. M. Eardsley, secretary of the South Taranaki Association, who was accorded a vote of thanks by the meeting.