DAIRY INDUSTRY.

Hawera Star, Volume XLVII, 16 August 1928, Page 10

DAIRY INDUSTRY.

SUPPLIERS’ ANNUAL MEETINGS

MANUTAHT COMPANY

The business before the annual meetins of the suppliers of the Manutaht Dairy Cpthpany was transacted in record time yesterday, when there nas an attendance of nine. Mr. S. L. Tonks chairman of directors, presided. In moving the adoption oh the report (already published in the ‘-Star ) and balance-sheet, Mr. Tonks said that in his opinion the past season was one Of the best yet for the company, showinjr a record in production for the season, with an increase on the past year of well over five thousand pounds of ~utter-fat. This, he said, considering the dry spell experienced, must be considered very good. Manutalu was often re. erred to as a small company, but he commented on the remarkable fact that the average ■ butter-fat per supplier was no less than 31.8151 b—with a total of 381,7861b —the former being surely a record for the Dominion. The- costs to f.o.U. had been considerably reduced from 3.90 d to 3 27cl and the csost of manufacture to the door from 3.20 c! to 2.87c1. For this the manager and staff had to be congratulated. CONSIGNMENT POLICY. The directors had sent their output oil consignment, despite tempting offers and the results must be considered very satisfactory. So far Is 7d had been paid out, and a further penny was now added, while there would be, he estimated, a further £2OOO to distribute and this would bring the total to Is 9tl or a fraction over. This would be clone after allowing for .depreciation on -factory, plant and road, in addition to an allowance for shares in subsidiary companies. The depreciation, lie added, represented about a halfpenny per lb on butter-fat. There was a considerable reduction in the coal bill about £l4o—resulting from the manager securing coal that suited the lioiler, and also to the use of the pasteuriser.

THE COMING SEASON. The prespects, he considered, were very bright for the coming season, and a few sa-lets had been made which would allow -a'pay-out of about Is lid. Trie more sales made the better for the consigning companies, The company was to be congratulated on the excellent- grading figures secured at Patea works. Manutalu was top for creamery butter, second for whey butter, ancl sixth for cheese. ’ BALANCE-SHEET, FIGURES. • He referred to the new reserve created, which, he said, was for shares in other companies, ancl the directors were endeavouring in a good season to set aside enough to cover the Box Company shares. Wages and requisites were down, while interest and "exchange was reduced by a considerable sum —about £43o—and it was to be noted that the rate of exchange was down to ten shillings per dent. The sum of £478 had been written off for depreciation, £l5O for reserve, and an allowance had been made for painting. He drew attention to the large decrease in trading account profit, by no less than £255, due <to the decreased sales of benzine.' In the previous year they had a consumption of nearly 4GOO gallons per month, whereas last season this was down to 500 gallons. Previously they used to- sell ton lots, but with the bowser much less was sold and more small lots were taken. The profit had been twopence a- gallon, and now it was reduced. He thanked the staff for the assistance given to the directors in bringing the season to a successful conclusion. They were exceedingly fortunate in retaining the services of their manager, Mr. 6. McQueen. QUESTIONS. Mr. T. Geary asked about the reserve of £3IOO, which, lie said, appeared to belong to nobody, and should be issued to. -suppliers in fully paid up shares. . The chairman .said this was, helping the directors to get off the guarantee and saving them leaning so much on the bank. They hoped to wipe off still more of the overdraft this season. In reply to Mr. Geary, the secretary said they had paid over £3600 ■ for plant. The motion for adoption Was carried. ELECTION OF DIRECTORS. . Messrs. A. B. Muggeridge and J. R. Taylor were re-elected unopposed to the directorate. Mr. Muggeridge ancl Mr. Taylor briefly returned thanks for their reelection. GENERAL. .

The chairman’s honorarium was fixed at £SO as last year, and directors’ fees at 15s per meeting. The 'hairmnn remarked that the amount had been fixed four yeans ago at 10s per meeting, and lie fore that nothing was paid. Mr. J. D. G. Thomson was reappointed auditor at a fee of £l2 I2s. INTEREST ON CAPITAL.

The chairman said that they had decided some years ago to pay six per cent interest on capital, and this had been continued, but ns thev were advised a resolution was needed every year to do this, it was- resolved that this meeting pay the nlxrve rate pf interest. on shares.

At the first meeting of the new hoard of directors, Mr. S. C. Tonks was unanimously re-elected chairman fo>- the coming year. . The question of the amount of out for the current month was .brieflv discussed, and it was resolved to make it Is fid, which the directors considered quite safe with the present prices and prospects. Mr. Muggeridge expressed the or>inion that it was good to make a liberal nav-out in the earlv mart of the season. He considered that n-f one Tier rent of tho factories would pay out less than that figure. MANGATOKI DAIRY COMPANY.

APPROXIMATE PAYOUT OF 1/9. Mr R. IT. Free, chairman of directors, presided, ovl'.r ,on attendance of over 60 -shareholders at the twentyeighth annual meeting of the M'angatoki Dairy Company, held in the Mangatoki Hall yesterday. •Statistics for the year and the chairman’s report on the year’s operations have already 'been .published in the “ Havvera Star.” " THE -CHAIRMAN’S ADDRESS.

In 'moving the adoption of the 28th annual report and balance sheet, the chairman said he had to congratulate the'shareholders ■ on the termination of

a successful;year, both as regards production and payout, as the figures show that the production has not been affected by the drought which threatened to -becom e so disastrous. From the point of view of the men on the land (who has not loaded himself with an impossible burden) the year just ended must ibe regarded as most- satisfactory, as all farm products have found good' markets, and the policy of tlhc board in resisting the tempting offers that were made during the season, and -in following the policy ot' shipping on open consignment tj has resulted in shareholders receiving the full benefit of the market. Although the working costs have been reduced, the company again last vear made steady progress in the reduction, of its liabilities, and the directors hope, at no very distant date, to he able to announce that the liquid assets were in exees's of the current liabilities. During the year the manager’s residence at. Matapu was destroyed by fire, and the replacement involved the company in an expenditure df £2OO over the amount received for insurance.

At the last annual inspection of the plant at. Mangatoki by the Government inspector, 1 the boiler wh's condemned/ The directors had previously decided on a larger boiler and this was in the course of'manufacture when the old one was condemned. In the meantime they had to obtain a smaller sec-ond-hand boiler with which to carry on eheese-ntaking until the larger one was installed. As far as the rest of the plant was concerned all Was in fust-class order. The costs of manufacture per _ lb butter-fat .call for no special mention, costs under all headings having been reduced. Last ydar the board again debit direct with its -agents and the advances received for produce, together with the quick dispatch -of shipping, enabled the directors to make very sa tis'f a-etory advances to suppliers, without being heavily involved in financing under store Warrants at a cost of seven per 'cent. These factors i were reflected in a very substantial / reduction in the interest bill. Both the average test and the yield of cheese per pound of butter-fat showed a slight increase. • The quality of the produce had been -carefully watched. Of 48 factories shipping through the Port of Pat da, the Kaponga branch'-secured first place, Mangatoki third, Matapu eighth, and Mahoe tenth -pla-ces. Of the 48 factories only three completed the year -without making any second-grade cheese, and two of the company’s factories were included ■fti these three. Ail this reflects great credit on our manager and his staff, including Mr A. Picard, the farm dairy instructor. The importance of quality has been emphasised by certain gentlemen in the distributing trade in England, who have had interviews with the directors during the year, and in seeking information regarding ways and means that might be adopted to overcome the undoubted losses that arise from -manufacture of cheese from high-testing milk in the autumn, we have boon cautioned that, shoudl any scheme for overcoming these losses commend itself to us, we must first make sure that the good name of New Zealand cheese should not. he prejudiced ’thereby. Tn fact, some of these gentlemen have gone further and have told ns that, rather than interfere with the present, system, out endeavours should be to obtain a premium for our cheese by advertising the quality. Standardisation of tests of -milk for cheese-making has bpon put forth as a remedy, but, although such -a remedy nmv 'commend itself t.o us at this end. it is the effect that such a system, on becoming known, would produce on the consumer to the detriment of our produce. that is the important factor; for, we are assured, that were such a sysi tom to he adopted in New Zealand, our cheese would immediately be classed with a''low priced, part skim cheese already offering in limited . quantities on the English market.. In accordance with the scheme inaugurated the previous season, the company again last year undertook the purchase of fertiliser for -suppliers, and approximately , 650 tons were purchased through the office, those suppliers so purchasing effecting u considerable saving. The value of top-dressing was demonstrated during the dry spell last summer, for those who had regularly -slagged their pastures suffered the least from the effects of the drought. Present indications point to an excellent season for cheese, advances against consignments for early shipments being at present fixed at l'Od r.er lb f.0.b., ocean steamer, and sales for smaller outputs up to December 30, 1928, have already been made at up to 9)d per lb cheese, f.0.b., although this price is not at present available, nor has it been available for larger quantities. Owing to the prevalent of foot and mouth disease on the Continent, the importation of pigs from these countries into Britain in any other form than bacon is prohibited. Attention has- been drawn to the possibilities that are thus presented for the establishment of a profitable trade in the export of pork to Britain, especially during certain months of the - year. Trial shipments that had been made last year turned out very satisfactorily" to those farmers concerned.

During discussion on the balancesheet the secretary (Mr. It. D. Donglass) stated that in the past season

haulage by the company’s two lorries aggregated 4445 tons, at a total cost of iiiJioO, or approximately 4s 3.3 d per ton. The secretary also furnished the information that in 1918 the company's current deficit was practically £18,0110; it was now £I,BOJ, ancl the hope was expressed that hte ensuing year would show a current value. The chairman advised that a cheese waxing plant liad come to hand, anil the directors proposed waxing the whole of the-company’s cheese output in the coming season. THE PAY-OUT. The chairman stated that an average of is 7)-d per It) butter-rat had already been paid / out. On the 20th inst. a furtner payment of three-farthings per lb would ce made, and as 1-500 crates of cheese have still to lie marketed, the total pay-out for the year will probably amount to Is 9d. Mr. J. P. Marx rose to favourably comment" on this satisfactory position, and said that of about 25 dairy companies whose balance-sheets he had recently perused very low had paid out more than Is 7d. The balance-sheet ancl report were adopted. ~ GENERAL. Mr, A.' Picard, farm dairy instructor under appointment to the company, deli, ered a short address on the need ot cleanliness and the constant use of hot water in the milking shed. Strict attention to these matters, said the instructor, were essential to first grade products, and wou.d be reflected in increased profits to the individual supplier. A suggestion by . Mr. \V. Marr that a telephone be installed at the ivapr.nga branch factory was referred to the directors. in reply to Mr. Sulzberger’s inquiry as to whether it paid the company to pasteurise, ,the chairman said that in view of the fact that advices showed Mangatoki cheese to be equal to anything on the market, it certainly must be conceded that it did pay. It was decided that Mr. A. Picard, dairy instructor, be reappointed for a further term. The question of granting bonuses to the general manager and the secretary was deferred for consideration of the directors. 1 ELECTION OF DIRECTORS. Messrs T. 11. Anderson, J. P. Marx, and G. Preece were re-elected to the board of directors, and Mr. C. Mill is was elected to fill the vacancy caused by the resignation of Mr. E. Beech. It was unanimously resolved that the fees of the directors should be the same as for last- year. At a’subsequent meeting Air. R. H. Free was re-elected chairman of directors for the third year. Messrs Walklev and Cameron, of Havvera, were re-elected auditors at the same remuneration as heretofore.