KAPONGA DAIRY COMPANY.

Hawera Star, Volume XLVII, 24 August 1928, Page 4

KAPONGA DAIRY COMPANY.

'SATISFACTORY PAY-OUT OF Is 9d

There was an attendance of 30 shareholders at the thirtieth annual meeting of the Kaponga, Co-operative Dairy Company, held in the Kaponga Town Hall yesterday. Mr. A. V. Tait, chairman of directors, presided. DIRECTORS’ REPORT. The report issued to shareholders stated that the estimated pay-out lor the year 1926-27 was Is 3jd per lb butter-fat, but the final returns received from the Dairy Board being substantially in excess of the estimate made by the latter for balance-sheet purposes, the actua: pay-out was Is 5d per lb butter-fat (exclusive •of interest on shares). For the year just concluded cheese unsold, comprising six shipments, had been taken into account for balancesheet purposes, at an average price of 102 sbd per cwt. Oil this basis the amount to credit of appropriation account would provide for a payment to suppliers (apart from interest on shares) of Is 9d per lb butter-fat, and as actual realisations promise to substantially exceed the estimate above mentioned, the ultimate' amount receivable by suppliers would be increased accordingly. To date of annual meeting suppliers would have received Is per lb butter-fat.

From the point of view of production the past season showed a satislaetory increase, the amount of butterfat received constituting a record for the company, being 8 per cent, in excess of the .quantity for the previous year. A dividend at the rate of 5 per cent, on paid-up capital was recommended for distribution. The retiring directors, Messrs J. \\. H. Gardner and J. P. Gibson, being eligible, offered themselves for re-elec-tion. .

Before commencing the business o; the meeting Mr. Tait referred in feelinn - terms to the death of Mrs. ,G. Ho!lard (mother of Mr. W. E. Bollard, one of the pioneer directors of the company), Mr. P. Thoumine (a. former director), and Mr. B. L. Webby (a supplier for many years); which had occurred since the date of last annual meeting. He moved a resolution of condolence with the respective relatives; this was observed in silence, all present standing.

THE CHAIRMAN’S ADDRESS

In moving the-adoption of the report and balance-sheet the chairman made brief reference to a few important matters in connection with the year’s operations as follows :

As mentioned in the balance-sheet," production showed an increase over the previous year equal to 8 per tent., despite the lengthy rainless period that was a feature of last season. The total . number of suppliers having been about the same in each year, it was reasonable to ascribe some at least of the increase to the more extensive use of iertilisers on the part of suppliers. For the season now commencing the prospects for a f urther increase in milk supply from this cause were more promising still, as, while at the outset of the past season suppliers purchased through the company for top-dressing purposes 150 tons or fertilisers, during the past -autumn 600 tons had been so purchased • from the company, to which must be added, of course, the probable considerable quantities which-had been obtained by suppliers through > other channels. It could hardly be otherwise but that this adoption of intensive top-dressing, for the first time as an almost general practice throughout the area in ,which the company operated, would be sti-ongly reflected in the production figures for the ensuing season, and, if so, would have a marked effect in still further lowering the company’s working costs. With so much produce to still dispose of, it was impossible, as was the case last year, to quote exact returns to suppliers, but it would be between Is 9d and Is 9£d. As was indicated at the last annual meeting, various expenditure was then being made to the end of effecting economies, and the result of this was reflected in the lower working costs for the past year, and would so continue to an increasing extent in the future. As compared with the previous season, the savings in working costs under the several heads were equal in amount to .the following sums: Wages £6OO, iuel and power £l2O, requisites £2OO, repairs £l2O, overhead £l6s—a total of £I2OO.

Gf a total make of 15,502 orates of cheese only 432 crates were of second grade—less than 3 per cent. The average grade was 91$ The chairman deplored-the fact that the Dairy Board had automatically ceased to function for the general wellbeing of the industry. He was satisfied that had it not been ruled out of benefit.to the dairy farmer at large its operations by now would have returned Dominion profits in the dairying interests to the extent of upwards of £1,000,000. The trouble with the Dairy Board and its opponents was the fact that not enough seats were created. From the outset the board had to contend with vested interests. He absolutely defied and repudiated any assertion that the board was responsible for* losses.

. He vv as pleased to record that according to official reports the -butter pveil need by the company was equal to anything produced in the Dominion. In connection with the quality of milk supplied ■to the factories, the chairman referred to the prevalence of open stands in the vicinity of milking sheds, and the danger of unintentional adulteration by rainfall. He exhorted suppliers to cover their«tnilk stands, as water would not in any way advance their interests in the matter of test or quality. The directors required the undivided support anl backing of suppliers in the production of a first-grade output. There was a very small proportion of second-grade product this year, and it was quite possible to altogether eliminate second-grade in future.

- The chairman referred to the satisfactory results accruing to the substitution of coal . for wood fuel at the company’s factories, which had been adopted in consequence of the difficulty experienced in procuring good, sound firewood. On the motion of the chairman and Mr. .1. P. Gibson the balance-sheet and report were adopted. GENERAL. In reply to Mr. T. Perry, the chairman said that in substituting coni for wood fuel there had been no necessity to scrap the boilers and furnaces. All that was required was a reduction ol the firebox space. In regard to transport of the company’s output; the secretary informed Mr. Dempsey that only live tons per week were forwarded by lorry to Moturoa, the balance going by rail from Eltiiam. He doubted if it would be cheaper to send the whole output by road as against railway transport.

The chairman expressed the opinion that it would be hardly fair to ignore the railway in favour of lorries, which catered principally for the “eyes” of transport trade. It would be a sorry

day f-or New Zealand, he said, when the railways, laid at the expense of the primary producer, were ignored.

Mr. D. Gibson referred to the inadequate supply of hot water to suppliers at the ltiverlea factory, to which the chairman replied that he did not agree with the system of hot water supply, which! on arrival at the farm for cleaning purposes was only lukewarm or at blood heat. The evil effects of the use of lukewarm water in cleansing dairy utensils have been repeatedly pointed out to farmers. It cost the company £2OO per year to supply its. shareholder with water that -became simply a breeding ground for dangerous bacteria before its arrival on the farm.

in reply to Mr. R. D. Dagg, the chairman stated that the proposal advanced by . Dr. Harding to purchase the company’s output of whey for an extended term was still in abeyance, nothing definite having been heard in that connection since Dr. Harding concluded his inquiries. A motion by Messrs Hey and R. D. Dagg that it be a: recommendation to director to pay out on milk supplied on a grade basis was lost. ELECTION OF OFFICERS.

Messrs J. W. H. Gardner and J. P. Gibson were re-elected unopposed to the board of director's.

Mr. H A. Lennon was reappointed auditor at the same remuneration at heretofore.

At a subsequent meeting of directors Mr. A. V. Tait was re-elected chairman for the tenth term.

On the motion of Mr. J. H. Bentley a. vote of thanks was accorded the management and staff for faithful services rendered during the past year. The chairman expressed his thanks to shareholders for their attendance and the fair run accorded to himself and co-directors during the past year.