THE DAIRY YEAR

Hawera Star, Volume XLIX, 20 August 1929, Page 6

THE DAIRY YEAR

SHAREHOLDERS’ MEETINGS. THE OPTIN'AKE COMPANY. ALL DIRECTORS. RFFELEGTED. Tile thirtieth mutual meeting of die sliareliolders of the Opunake Co-oper-ative Dairy Company, Ltd., drew an attendance of 23 to the Opunake town hall yesterday. Mr. K. G. Bayliss (chairman of directors) occupied the chair.

“The output of cheese has increased by 71 tons 5 cw.t.,” stated the annual report. “The manufacture of butter was discontinued in August and cream has been sold to the Pihamn Dairy Co-operative Dairy Company, the results being entirely satisfactory, The cheese manufacture to the end ol December was sold in f.o.b. terms, the balance, in open consignment, W. Weddel and Co., Ltd., handling the whole output. Advance payments t‘> suppliers per lb butter fat have been made as follow: July Is od, August to December inclusive Is Bd, January, .February Is Gd, March to Juno inclusive Is 4d.’ Statistics relating to cheese manufacture were given as under the corresponding figures for the 1927-28 season being shown in parentheses: Milk received 5,967,5251 b (4,664,6501 b); but-ter-fat. 224.268.41 b (190,544.71 b); cheese 661,2191 b (501,5451 b); lbs milk to lb cheese 9.024 (9.30); lbs cheese to lb butterfat 2.706 (2.632); average test 4.009' (4.084). CTiAlii M AN 1 S REVIEW.

In moving the adoption of the report and balance sheet the chairman said he thought he could congratulate suppliers on a successful season. “The output of cheese shows an increase of over 7o tons over the previous season,” lie continued. “To cope with the increased supply it was necessary to instal additional plant —a. vat, press and agitator. Two second-hand vats were obtained at a satisfactory price and further increase in supply can now he coped with at short notice. A waxing plant was installed and cheese manufactured from October 1 was waxed. The saving in shrinkage is a big item and on an output of 100 tons will pay for the installation of the necessary plant. The estimated saving in the case of this company on the quantity so treated was £2OO. “The amendment to the regulations under the Dairy Industry Act which came into force oil January 15 debarred the skimming of starter milk and made provision for the manufacture of cheese containing a minimum of 50 pei' cent, fat in cheese manufactured during August and to the end of February, and a minimum of 52 per cent, of fat in cheese made during the remainder of the year, such manufacture to be branded a:s standardised. The scheme was carefully considered by the directors and it was decided to register as a standardised cheese factory and such manufacture was commenced on February 5. After allowing for starter cream, additional butterfat to the value of £402, representing 1-Jd per lb butterfat, was obtained over the standardised period. The yield ol cheese to butterfat was no doubt affected, so we do not contend that the amount referred to is all profit, hut ns near as we can estimate the actual gain would bo about £3OO. GRADING RESULTS.

• The results of the season’s manufacture of cheese have been very satisfactory,” continued the chairman. “Out of a total of 3906 crates 6.22 per cent, were graded finest, 91.86 per cent, obtained first-grade and only 1.92 per cent, was classed as second-grade. “The sale of the output to the end of December, at 9id per 11 > 1.0. b., proved to be a very good one. The balance of the season’s output was forwarded on-consignment. Owing to the fall in the cheese market early in April, it was decided to place a reserve on the cheese. The market, however, lias not since touched our reserve and on July 25 our agents were instructed to dispose of the accumulated stocks in weekly quantities. “Advances against shipments going forward have been conservative in view of having placed a reserve on the produce, and the estimated surplus shown in the working account irs also based on conservative values. The available’ balance JEI.OSS 11s lOd. together with a further payment of £3BO 7s lOd on account of cream and whey cream sales, will be paid to suppliers when surpluses conn* to hand.” The motion to adopt the report and balance -,sheet was seconded by Mr. A. H. Wisniewski. JL»A Y-O U T EXPECTED.

Replying t-o a query, the chairman said tiie average advance over the season had been Is 0 3-sd. Tlie final pay-out would, of course, depend on the price obtained for the supply unsold. but it was hoped to secure a total of Is 8d or Is 83 d. The secretary (Mr T. H. H. Sinclair) stated that there were 1600 crates unsold at June 30, but since that date over 300 crates had been sold at from 80s to 90s 4d. The saving in the cost of manufacture represented 2s 9d a ton, or £4O 6s 9d better than the previous year. Mr C Humphries asked what was the amount of the overdraft this time last year.

The secretary explained that there was more unsold cheese this year than last year. On June 30 last year the overdraft was £2255 18s; now it was £3044 2s. The receipts from consignments were 7.23 d per lb. Mr AY. L. F. Chambers inquired into labour costs. He understood that on the change from buttermaking to' sellimr cream that the butter had been debited with the manager’s salary. The chairman : No ; only about one ■ usual hand. Air Chambers considered that there had been a substantial rise in salaries, and they wore making no butter. The secretary pointed out that there was an increase of 71 tons of cheese. AO- Chambers said lie was not speaking in a critical spirit, but lie would like th<‘ directors to he a. little clear on a few points. He asked what was the cast to f.o.b. He admitted that it ■vas verv difficult to compare the two liiil ni e-slioets. as different subjects we-c treated upon. Tile seeret.arv said it was recognised tluif tin* cost he making cheese was more excessive than making butter, ii rTT FT? A 1 A X UFA CT (T RE.

Tiuongh an oversight he had omitted (o out the i,utter statistics ill the report. These wore as follows: Tinl ter. — Lbs milk. 86.607 : lbs but-ter-fa 1. 3853.9: lbs cream, 1731; lbs butter-fat. 686.2; total butter-fat 4548.11 b; lbs butter. 5144 ; overrun, 19.8”: average test milk. 1.419: average test cream. 39.7. The cost to f.o.b. this year was f.l.'fsd. against l.blnd last year. This was oiilv .tMl7d per lb. fmt on tlm ton page it was a considerable saving. Depreciation accounted for .i 5d of these costs.

The chairman said that they hau arranged with the bank to reduce their, liability by £SOO a year. This would be a little less than id per lb butter-fat instead of as previously. It was thought that if they paid oft in a hurry the suppliers who came in later would reap more benefits than the suppliers who had stuck to the company. , , . , Mr J. S. Hickey asked how much cheese was unsold on June 30. The secretary said that on June 30 there wore 1600 crates. Since then 387 na a boon sold, leaving lust over 1200 crates. A speaker suggested that they had made too much white cheese this Mr Hickey: We have got to wait til* flic end of the vear to iind out. The secretary said that they -made about three-fifths coloured. Mr Humphries: Tt costs a bit more to make coloured. Mr Hickey : It weighs a bit Idee tbe wax. (Laughter.) FUEL COSTS.

Air Newman asked for information regarding fuel costs. The chairman replied that a new burner had been installed. This was estimated to effect a saving of 15 per cent, but they did not attain that amount. Some managers had attained a saving of 20 per cent. They did make a considerable saving by the special burner, biit it was not as much as expected. The .secretary quoted the following figures showing the saving in luel costs: 1927-28, £1 4s 6d per ton; 192829. £1 Is 9d per ton; a saving of 2s 9d per ton. a total saving of £4O 6s 9d on the output of 295 tons. The manager (Mr H. PI. Gilshnan) stated that the saving in fuel was not as great with good coal or wood as with slack coal. Owing to the diffi- ■ nit" of obtaining the latter they had to use a lot of hotter class coal. The apparatus was new. and thev had had to learn how to fire it. hut ho thought thev would do hotter next year. The motion to adopt the report and balance-sheet was carried. Fi.PX TIOX OF DIRECTORS hast year's directors, Messrs E. G. Ray!is, .1. S. Hickey, J. C. Barrett. E. S. Hickey and A. 15. W.isnewski, were re-elect r.ii unopposed. Ah- ii. Newman was 1 e-elecled as auditor. The directors’ fees were fixed in accord-.; me with the previous scale 111 expressing thanks for the r-om'i-dence shown in the directorate. the , chairman expressed t hanks to the secretary (Air T. H. H. Sinclair), the managoi- (Air 11. H. Gilshnan) and the stall' ior their work during the year, and also < xpressed his personal thanks t•:j -the directors for their co-operation. A report of the factory working tinning the s.o.isnn was tendered l>.v the manager. Votes of thanks were accorded the dir'ctn-rs. the secretary, manager and :-bu:f members. At a. subsea nenl meeting of the direstorate Mr Tiayl.'u was ie-e!ecte:l as chairman.