CO-OPERATIVE DAIRYING.

Hawera Star, Volume XLIX, 17 August 1929, Page 10

CO-OPERATIVE DAIRYING.

ALTON COMPANY MEETING. pStLiUEIi A ACREASE iN OITPLT. At the annual meeting oi the Alton Dairy company yesterday, Air A. j>. AUiggeuiage (.unainmui ) presmed "over an la-ttenuanc-e of u-ooiut- twencv-nve suypikers. in moving the adaption of the report (alreauy .pubusneu) ana balanoetslheet, the curannian said the .company nad l Audi a good season, with an increase m output- ox just on bi per cent. This was. due to better metnods ol famtuig, ox ciaifnng in the a&d of scientific reyear eh and using more fertilisers. These xaetoiiis prayed a pi-oniinent part in the work, a-Though fierd testing had also been a vauabfe. ally to the dairy farmer, lag' group in which Alton operated was instrumental largely in bringing down the expense of testing, and now it was ! he could say without fear of contradict tion, t-lie cheapest An the Dominion, there had been an effort to effect an amalgamation between North and South 1 aranaki, but the effort had not succeeded. \\ axing of cheese had been carried out on part of the output, and this (had shown a lessened shrinkage of I per cent., the average previously being or per cent. Tire skimming of high-testing milk had placed operations of dairy factories on a sounder basis, because hi the past such an operation had been against the law and consequently “in bad odour”! and to-day it had been legalised. All had been doing it more or less in the past, but tiie legalising of the processLad been brought -about largely as the! result of the Tokaora test and Mr. j v eale’s valuable report on the question [ ot Inga testing milk -and the system I or pay-out on butter-fat. Thiis report 1 nuade it evident that a solution of the 1 question was essential' and standardiisied i cheese was the result.

During thy year the company had installed a new boiler, and' the fuel bill showed good results, the cost per ton beiiiig reduced by about six shiliiings. The cost would be spread over three years, one-third being written off each year.

A new separator had also been added and charged to repairs and renewals, while there was also a new stack and the bricking in, totalling £195. These items were the cause of the amount foxrenewals being so liigli, but, notwithstanding the cost of manufacture had teen reduced and was now very low! indeed. i

I t had been a move in till® right diluction, s-an'd Mr Muggeridge, to keep the factory open longer and 1 siti.M to reopen at the. same date, for he was one of those who considered that the factory should not be bound by any .rule, but .should be kept open if there was reason to warrant such a decision. In regard to marketing, the biggest problem confronting the /industry, lie sa.id that the finest scheme in his opinion put before factories had been •turned dlown due largely, he considered, to propaganda. All would agree- that marketing was the question which gave them most concern. At the beginning of the year f.o.b. shies had been effected on a high basis, but merchants had said it was to he. a good consigning year. The directors had not been tempted by high prices .and consigned, but as the season advu.noed the markets fell, and then the directors decided to withhold from the markets most of their produce, and to store the _ shipments tjiill better prices were available. Thi-y -policy had proved right, and the average secured for all that was sold had been !)4s 2d, whiile storage had cost Is Odd per crate. The marketing of 80,000 tons of -produce from the Dominion was -a huge question and it was undeniable that the policy of f.o.b. stales had an upsetting effect. In th-cfir own case only shipments showing deterioration were sold.

Mr Muggeridge referred to the urgent need of some big scheme, and noted that the cost of the agents working in Xew Zealand was no less than £1.10,000: a futile and stupid waste he regarded it. He said he was sure that in time a scheme favourable t<> the producers as a whole- would lie adopted.

Turning to the balance-sheet. the chairman said that the figures would compare well with any other, while manufacturing costs had been reduced. The store, he said, had a credit balance, and it was resolved to dis-

tribute lour per cent discount on goods purchased. The store accounts reflected the greatest credit- ori the manager and staff The turnover of £10,892 on stock of £2OOO showed that the goods had been turned over five times. The company had assisted suppliers by helping to reduce the cost- of manures, and the speaker briefly described the operations by which manures had been brought to a figure which uas the lowest- ever seen in the Dominion, and he added that- although dearer than during the war in fertilisers They were at reasonable rates. The Alton Company, he said, in conclusion, was one of the soundest on the coast, and figures showed that the position had improved by no less than £2OOO during the past three years.

Ihe company had paid out well, a I result due to the conservative policy adopted in the past, under which t-hev had kept a credit of £2OOO and had hoi rowed as required at one Tier centmore than they were receiving. This had resulted in their making a profit on interest of about- £2O. The figures submitted proved the o-ooa work done bv the manager (Mr Illingworth) and his staff and'all concerned with the operations of the company.

In reply to Mr J. Gibbs, the chairman said the. rebate on stores would , a ' ‘-owed on his- sharemilkers’ purchases.

~ • T- Gibbs drew attention to tie fact that it should be made clear that the balance from the store account- after payment of the- four per cent should he put- to reserve account. He agreed that the position was very sound, hut -said that- it was due I merely to- the sound and conservative methods practised during the last 20 vom-s. Ho admitted that excellent work had been done during the past three years under their present chairman. The balance-sheet was excellent, and the only tiling missed was the profit they could have got bv selling the produce. The chairman acknowledged the good work done in the past under Mr Gibbs, hut- added that the signing of the bond to raise £2OOO had eontrihnt- i od much in bringing about- the pressatisfactory state of affairs. * 7 lie motion for adoption was unanimously carried.

GENERAL Messrs M. Atkinson and R. Neilson worn elected unopposed as directors. Mr .T, D. G. Thomson was reappointed auditor at- the same remuneration as before

Afc the first meeting of the directors. Mr A. B, Muggeridge was rea poo in ted chairman. The chairman said he was pleased to see Mr Atkinson back on the hoard and to welcome Air .Neilson, the newly-elected member.

Votes of thanks to managers and staffs concluded the meeting.