DAIRY INDUSTRY.

Hawera Star, Volume XLVII, 23 August 1928, Page 6

DAIRY INDUSTRY.

T. L. JOLL COMPANY

A PItOSPEItOUS YEAR. Kapuni Hall was well filled with, suppliers and shareholders yesterday on olio occasion ol the twentietn annual meeting of the T. JL. Joll Cooperative Hairy Co., Ltd., there being 140 present. Mr. J. B. Murdoch, chairman of directors, presided. The secretary (Mr. A. Lees) was in attendance. In moving the resolution to adopt the report (already published in “The Star” and balance-sheet), the chairman said that in 190 S, when the company was formed from the business of the late Mr. T. L. Joll, the output was 1700 tons, and by 1914, after a period of keen competition, it had forged ahead steadily, until now it was 3500 tons. The cost f.o.b. in 1910 was very low, being 2.04 d, and now it was 3.5 d. It was highest in 1920, 4.98 d, so that it would be realised the staff had done excellent work in effeteing this reduction in costs. The number of cows held by suppliers was 12,033 and the average production 2341 b, as compared with Itiverdale 253, Eltkam 2 25, and Norman by 243. The chairman said he had received a pamphlet dealing with conditions in California, and this showed that, the average per cow for that State had been raised from 1871 b to 2391 b. The gain that would be secured to New Zealand if dairy fanners would do the same would be very great indeed. He asked the suppliers to consider what a similar increase would mean to the company and to New Zealand. When 1 Joll’s began the average was 1721 b, and when testing had been begun the average test was 3.60, and this had gone up to 4.14. He referred to the controversy in regard to milk for production and the test to secure a- verdict. He considered a manager should be able to mix the richest and poorest I milk and so obtain a better article. The matter really concerned the work in the factory, and the test would no doubt do good. What they should aim at was not whether any breed was the best, but what production per acre they could secure. During the season suppliers had paid: a. lot of attention to increasing yields from their farms, and the results of the use of fertilisers were quite evident, and he said it would he a great scheme if they would arrange to put all their orders through the company. He considered .they could double the turnover, while the company would receive the discounts. In regard to shipping during the year, the position had been fairly satisfactory and better than for some years. Forty-four ships had carried their output, but the fact that the amount carried had varied from 150 crates to 2800 in one hold showed that there was need of more regulation in regard to quantities. This matter had been under the Dairy 'Board for some time, and an improvement had been made. They had improved such matters as insulation in carriage, and there was not the stagnation of air in the hold. Their own contribution to control had been £4OOO, and he could not- see they had received value for this amount of money. The Dairy Board had last year issued export licenses, and application had to he made for these before any produce could he shipped. The company had objected to two special clauses dealing with the handing over of account sales and the audit of merchants’ books, in London. Their objection was that it would 1 cause friction with the merchants. There were no such conditions now, and he • considered that, amendments to the Act were still needed so as to ensure better working. There was always a danger of going to extremes when such wide powers were possible because they might he abused. He suggested l that .the matter should be brought before and l taken up by the federation in Taranaki. Improvement was wanted so as to avoid the risk of harm to producers in New Zealand. If the federation did not convene a meeting he considered the company should. EXPERIMENTS' IN PACKING.

He> referred to experiments made in packing methods. Vacuum packping had been tried for cheese to cut out shrinkage and improve quality. Good results htid been secured in sonic cases. There was also, he said-, the waxing process- to conserve moisture and stop shrinkage. The normal shrinkage was 2} per cent, and some companies had reduced this by waxing to 1 per cent, a gain of It} per cent, which would mean £3OOO to the company. Waxing plants had been installed at a cost of £IOO each. But he said ho thought too much waxing would not suit th© trade. They had to consider the varying tastes of the consumer, and a. uniform cheese would be most desirable. He did not know whether the process would secure this uniformity, but some said it would do so. GRADING OF MILK. The chairman referred to the grading of milk carried out hv the Whenuakura Company. They said the system was satisfactory, but after all I they had to depend on the man at the stage, and actually it was a delicate question. Then the quality of the milk had got so high that a snggeston was made to standards© to a 3.8 quality and to make butter with the rest. The department had experssed the opinion that this would he looked | j upon as a skim milk cheese, whereas I now New Zealand cheese was sup- , [ posed, to be a full cream cheese. It I might be abused; some would lie , honest, others not so, and the matter < would he hard to check. The result j might possibly he detrimental to the < Dominion’s reputation at Home. He , said they had to he verv careful Ivow j thev moved in this direction. He referred to the output from the , Dominion, which last year readied I 1.041,679 crates, the largest ever sent < out by New Zealand, while Canada’s < output had fallen from 75,000 to ■ 43.000 tons. New Zealand was the s chief .supplier to Britain. Of the c amount exported, he said, 55 per cent T had been consigned and 45 per cent sold t..ob. Some com names. sold and v had good results, hut generally the consignor had the better return. In f February last their compauv had offers c °r,Bsd and 8 ; d - hut resolved if 9d was t offered to sell for the balance of the c season. No such offer came, and l thev i consigned. It was fortunate they did a so. They had had 1000 crates' left and this was taken in at 100 s. Refer- c ring to the consignment policy, he f said that if they had sold consistently a during the 20 years the company had been in operation they would have lost t probably £200,000. t THE PRESENT SEASON. '

Referring to the present season, he said at h'ad opened much better than last, with 113 s .as againlslt 100 s last year at this time. There was -a shortage in stores in London and also from Canada and there were 'good prospects for high prices ruling. The position of the working classes, to'o, dn the Old Country was much better. Some companies were reported to have sold for two months a.t lOd) one to December

at 94‘d and to April .at 9}d. Toll's would consign to the mere-hunts firms as last year, reserving the right to sell if it Was thought fit. THE YEAR’S FIGURES. Turning to the balance sheet, the chairman shid that the position showed that the return to .suppliers was Is 91d based on the amount received for cheese unsold, ■which Was taken in at 100 s and lie was convinced 'that the figure would actually reach lis 94d or a little over. This Would compare well with any other 'cheese company and when they 'considered .they were 'the biggcslt cheese factory in Now Zealand, it must bo. considered very satisfactory.

It would ibe seen that the expenses to f.o.b. were reduced, every item in proportion to the stuff handled, and last year were down to 3.0 d and they hoped to reduce still more by !the wfaxing process. In addition they expected to get; Tangarhkau coal and to save materially on freight, for ilt Would .cost Ss fid .per ton to nearest railway station as compared with the present cost, ■of 20s per ton. They Wad tried out the eoal and found it satisfactory.

The .buildings were set down at £25,195 and (this was not a high figure while plant stood at £9,642. The machinery was in first-class order. For this the manager air'd staffs had to /be cordially congratulated!. The lorries stood at the game figure as (before, but lie said the correct policy was to use the rail wherever possible, although it was as dear ,to send to Elapun'i as to Normanby .because of the saving on roads. They had sold .butter at Is fid and what was .held was put in at that figure. 'Reserves had been set aside of £ISOO an'd £199 to pay off the new factory, and interest paid at 5 per cent. If these had been added to the pay-ouit it would have made another farthing. 'Mr T. Walsh seconded the adoption of the report and the motion was carried.

In reply to Mr Scott, the chairman referred to negotiations going on in connection with the Bax Company; which, if successful, would mean a lot to the industry. Mr Scott referred to the purchase of crates and asked if £IOOO could have been save'd ;by purchasing crates outside. The ’chairman said a considerable saving could certainly have been made, but added that other sources might in the end prove more eostlv, and he saiil lie knew of one 'factory where broken parts of crates were being used for fuel. ’

In reply to Mr L. Harrison, the chairman said the Dairy .Board pail £1,750 to the National Dairy Association for looking after shipping for the North Island and the same sum ito the South Island Association. The board had now decided -to do the work itself and he hoped it would cost less. In reply to a supplier, the chairman said that £1,200 had been paid for advances from their bank where they lia'd a working limit. If they had sold this would lii'avc been cut out. RENNET .COMPANY.

To Mr W. E. .S'catt, the chairman said that they must take over a proportion of new shares in the Rennet Company, which was the .only one in New Zealand manufacturing rennet. It Was not a question of wanting capital. The dairy company was taking this year half its rennet supplies locally and half from overseas. Regarding (the matter of the management of the Rennet Company, Mr Murdoch said the directors were taking steps to safeguard their interests in the event of anything happening to the -manager of the concern who was at present the only man Capable of turning ohit just the article required. The shares in that company had actually been written off long ago. The motion was carried. DIRECTORS. Messrs W. A. Guy, A. C. Johnstone, T. Walsh (sitting directors) and L. C. Harrison, G. Ilurlo-.- and T. York were nominated as directors. On a vote being taken, Messrs Guv, Johnstone and Walsh were elected. Messrs Lennon and Tristram were re-appointed auditors at. the same fee. The chairman’s honorarium was fixed as before. Votes of thanks were carried to manager, secretary and staff and also to the ladies for providing luncheon. At the first meeting of the new board of directors Mr J. ,B. Murdoch was re-elected chairman.

HURLEYVILLE,

A GOOD SEASON’S RETURN. t , There was a good attendance of supr pliers at tfie annual meeting of the [ riurteyville Dairy Company yesterday, i Mr J. Hurley jmir. presiding. I The report stated that the previous . season under control, after the final j bonus was paid, the pay-out was. Is 4 , 19-32 d per lb of butter-fat. The season’s produce was disposed of at B}d per lb to the end or December, to the end of February at B}<l, and for the balance of the season at 9cl per lb,j while suppliers bad been paid Is 6d per lb. A regenerating plant had been installed during .the season. The directors recommended a dividend of 6 per cent, on share capital, which would absorb £B2 0s 4d, and that the balance at profit and loss be distributed pro rata to suppliers. The statistics for the season were Total milk supplied, 425,443 fat, 166,628.3 lbs; in ilk for cheese, 4,669,971 lbs:; cheese (gross), 442,701 lbs; shrinkage 10,797 lbs; cheese (act) 431,9041b5; fat, 161,910.8 Jh; milk to one jxnmd cheese, 9.21 lbs; cheese to fat (net), 2.666 lbs.; average test, 3.978; milk separated at start of season and starter, 118,792 lbs; rat, 4,702.3; average test, 3.973; cost of manufacture to f.0.b., 3.50 d Tier lb butter-fat. In proposing the adoption of the report and balance-sheet, the chairman said the pay-out was l better than wars expected and was satisfactory to everyone. He referred to. the installation of th© regenerating plant, and said the grade had been better than , ever before, as they had secured fourth place at Pa tea.. This was a. great com- , pliment to. the manager, Mr Rodney, J and staff. 1

Referring to control, he :said lie: still favoured! it, but not the absolute clauses. He was in favour of ;a certain amount per ]b of fat, say l-16tli of a penny, being appropriated for maintenance, rather than a lump sum as required. The .suggestion of the auditor that a. credit balance which had been carried forward should be placed to reserve was approved.

In reply to suppliers., it was stated that the company held 1164 shares in the Box Company. 700 paid nip, and it was stated that the Rennet and West Coast isharcis were worth: their face value.

Mr Hurley senr. referred tcv the basis of pay-out, and said it. was not. fair, as was shown by authorities and proved by the Tokaora test.He supported! Mr V.eale’s suggestions as to a basis being made on the average month’s test. It was resolved to metal a separator plant to deal with whey butter. Messrs D. Hurley and Tooker wen© reelected directors, and Mr J, D. G.

Thomson re-appointed auditor. The chairman’s honorarium was fixed as before. Mr J. Hurley junior was, at the first meeting of the new: board of directors, re-elected chairman.