CO-OPERATIVE DAIRYING

Hawera Star, Volume XLIX, 29 August 1929, Page 6

CO-OPERATIVE DAIRYING

JOLL COMPANY.

ANNUAL MEETING, There were a,bout 140 suppliers and shareholders present at tne twentyfirst annual meeting of the Joll Co-op-ea.rtive Dairy .Factory Company, Ltd., in the public hall, Kapuni, yesterday, Air J. ii. Murdoch, chairman of directors, presiding. In moving the adoption of .the report "(already published) .and balance-sheet, the chairman said that the position at present did not look nearly so promising as at this time last year, when the conditions were the best for many years. But at present there was a scarcity in the North and South Hemisphere’s and stores were nearly hare in London, so that this deficiency made the prospect look materially improved. The company. believed in a consigning policy, but naturally was out, for big prices whenever available. Lt was a matter of fact that a consigning .policy was better than a mixed consigning and selling one. A consigning policy all over the years of the company’s existence would hav© been better than selling. It must be realised that if firms lose by heavy buying they would be out to get that Joss _ back. As a result of a consigning policy, the company had been able to secure an average price of just over 90s, as against 97s in the previous season, a difference in all of about £25,000 to the shareholders. J

The Quality had improved generally, according to reports from the Old Country, and the directors were now considering the securing of more improvement by cutting otfb pasteurising. For many years they had kept off tins process, but the graders and the Agricultural Department were in favour, and it was found that unpasteurised cheese was graded lower than pasteurised. In the end they were compelled to fall into line. But pasteurisation was not doing the job that was expected, for while it Killed germs it destroyed flavour and it seemed likely the ' department was going to take .at different view in the future. If an improved quality of milk were obtained, pasteurisers oould be abolished, for their work would be done on the farms. It was certain that flavour was neutralised by pasteurising, and some people would say the flavour now was not. so good', as in previous years. WAXING OF CHEESE.

Another question that occupied the minds of directors wais the waxing of cheese, by which it was reported a saving in shrinkage of 1 per cent, oould be secured and the same pnee received. The company had installed plants, and the previous season had waxed some and' sent it Home. Last season the results of waxing had been satisfactory until the hot weather cam© along, the manager reporting that the cheese was affected by wetness and under the wax was getting mouldy. Cabled! advices, too, were not good, some condemning it, some being indifferent, and some approving. In consequence waxing wag stopped in the middle of the autumn. They found,, however, that some of the unwaxed cheese seen in. Wellington was worse than the waxed. He considered that the Dairy Board should secure proper reports and find out the real requirements of the trade in London. He thought that trouble arose mainly through) waxing cheese that was only three or four days’ old. Information was needed, and the. failure of the hoard was very disappointing. The. directors had decided to wax unless adverse reports were received.

STANDARDISATION. Itt regard to standardisation, the chairman said that Canada had hardly 50 per cent, of fat in their cheese, English a little below and European aborrt the same. New ySeaadnd had been manufacturing a cheese with about 54 pea- cent, on the average, .and it was contended that if the English consumers desired only 50 per cent, the extra 4 per cent, could bo saved. All reports so fair had been good in regard to the standardised cheese ’gold, but great care was necessary' in taking out that extra fat so as to ensure getting standardised and not- ‘‘modified” cheese. The trade at Home had given a good reception and the makers must take care to keep the percentage at from 51 to 52 per cent. It was difficult to get the exact percentage, but they ha-el to remember that “modified” brought considerably less than standardised. At present the managers of the company were adding about 10 per cent, of skim milk in the vats, and the average percentage of fat was just about 51 per cent.. It was advisable always to be u little over the 50 per cent.' GRADING OF MILK.

Anotlier matter that had to he considered was payment on graded milk. Some factories had tried it out and others were adapting the system. They paid different prices for cream for but-ter-making and the same, it wa,s urged, should maintain in regard to -milk. Whenuakura was the first factory to adopt the scheme and had found a wonderful improvement in the supply, if, he ;said, first quality milk was mixed with lower grade it brought down the whole factory output to a lower standard. It would be difficult perhaps to accomplish, but careful work would see it done. Their inspector would have a better chance .because- he would have more time to attend to the fewer .suppliers of lower grade. The directors did not suggest going in for it yet. They would watch to see if it should be done and lie considered the scheme would later be generally adopted. Generally speaking, said the chairman, prospects were not so bright as last year. Considerable .stocks had been held in London, but last week advices showed that Canada expected to be 20 to 25 per cent, below last year's output, the Old Country was having a dry spell, and a, resultant lesser supply and these signs indicated a shortage and gave promise of better prices for the production of the Southern Hemisphere. The tariff question between U.S.A. and Canada did not seem to affect trade between them and the States were buying more cheese from Canada, than before. These conditions appeared in h-i.s opinion to indicate that the season might he good. So far 81 d had been offered by buyers anil there was an upward tendency, that figure being equal to about 89s to 90s in London. That looked satisfactory, hut if anyone could say that- Is 7Jd* could he secured for ten years, it would he considered a good proposition. fn regard to stocks field, the company had 2000 crates unsold and this had been taken in at 87s, while prices now were about- 90s, «© that they would secure at least 3s more than allowed for in. the balance-sheet, and this would increase the pay-out.

FINANCIAL, Coming to tlie balance-sheet, the chairman said that the figures given were fairly conclusive. Buildings had been increased by £7OO for the cottage at Te Ngutu, while this year there

j would bo an increase for a cottage at j Otakeho, the old one being deiapidated. I Plant had increased by £3OO, for a new pasteuriser. Visiting managers had complimented them on the state of the plant and equipment and this was satisfactory. 'LI icy had said they considered the Joll factories had th© best conditioned machinery in South Taranaki. This was a compliment to the general manager and staffs. Two lorries had been added to the carrying plant, because they had to get rid of vehicles which had been in .use for ten. years. But cartage costs had dropped and carrying was now cheaper tbgai at any time in the history of the company, even when they had horses and when feed was cheap. The charges were now down t© 8s per ton, put on at the dif-1 ferent stations and the cartage wa,s( cheaper than last year. i The store account showed that a greater turnover had been effected' than ever before, and this was due largely to the increased sales of fertilisers. The results of topdressing could be seen in the greener pastures, .although maybe they were shorter than at this time last year. The garage rfhowed a profit of £3B. It had been ©recited to keep the plant (in good order. Lorries showed an increase of £2050. The company ha-d pursue! at careful policy, and a.s the result of good management reserves now totalled £14,326. This was a great record when it was considered that payments to suppliers had been on the top basis and ahead of most companies’. The company was in a position pre-eminent among factories in South Taranaki, and even perhaps in the north.

Years ago the company, he said, used to buy New Zealand hills in London and collect hard cash there, thus saving exchange, but the bank put on a penal rate of one-half per cent, on current account. To-day they could still do good business in London, but for tihisi one-half per cent. Morey was now cheaper and they were hoping to bring the banks to reason and secure a reef motion. By careful business they I could easily save £IOOO in exchanged One year they, had to pay nearly £6OOO and now they were paying £1740. In regard to shares in other concerns, the chairman, referring to the Box Company, said that reports received a month ago were better than ever before, and if certain negotiations succeeded the position would materially improve and no one would be more pleased than himself The company had put only £3OO into the West Coast Refrigerating Company, and all the increase had been made by refunds.

Years ago, said the chairman, the Rennet Company had looked in a bad way, but now it was good and supplied three-fourths of the requirements of New Zealand. This year profits were large, and it would be the policy of the company to make refunds to the contributing companies. If these were made they would be used to clear off the existing liability.

Every year was showing) an improvement on the running of "the company, and shareholders were to be congratulated on this fact. He said he hoped that this year the improvement would be continued. The directors had decided to consign through two big firms, reserving the right to sell if considered necessarv.

He referred to the reports of herdtesting and said that if the could be brought up to the best herd, it would be tt fine thing for the company and the district. The increase could be secured with practically the same expense. He urged also the necessitv of people stopping longer on their farms for South Taranaki had a very large “floating” population. They must build up their herds and their pastures and this would show what could be done with testing, culling and feeding. Air. Ei. J. Betts seconded the motion to adopt the report and balance sheet.

REPLIES TO QUESTIONS. In reply to a question, the chairman said that only thirty loiik of creamery butter and whey butter were included in the returns of elieese Regarding, the laboratory, the chairman told a supplier that the scientist wa.s examining standardised cheese and dealt with a large total of samples from factories and gave advice on difficult problems. In regard to the N.D.A. he said that company had written off a lot of obsolete machinery. (t was, lie added, an experience any company might have. The motion was carried".

AUDITOR’S REPORTS. The auditor reported that iixed assets had increased by £917, expenditure on Te Ngutu building arm purchase of a, new lorry. Capital £35,738 anil reserves £l-1,-326/-totalled a sum of £2,563 over last year’s figures. Fixed assets (land, buildings and plant) showed an improvement of £.1,745. The results reflected in the liquid financial position showed a compensating balance of the same amount made up as follows: Sundry creditors and bank £10,106, and appropriation account £25,122 less sundry debtors and stocks £22,307 equals £12,921. As a set -off against this amount, the value of buildings and -plant must he taken into consideration. The factories built could not possibly be replaced for the amounts at which they stood in the balance-sheet. The balance against th© company, £12,921, was a very small item to overtake in such an institution as the Joll Company.

In manufacturing there was an increase of nearly 120,009 lb of butterfat and in average test of ,04d, and f.o.b. charges had gone down by .08d. Pay-out was good, and might be better as stocks were realised.

The balance-sheet was most satisfactory, he added, considering the big handicap of taking over an established business and paying for it, putting buildings and plant in order, rebuilding and adding, all in face of strenuous competition, and thus rising to a commanding position as the largest cheese-making concern in New Zealand, if not in the world. The company had attained its majority and was a concern of which anyone might he proud.

INSPECTORS REPORTS

Cow Testing

.The work of testing revealed some high producing herds and many more 'tould have- been creditable hut that they diil not last for long enough to appear in the averages, stated the inspector in his report. This wa.s a disadvantage, especially as it entailed the less of Government subsidy now being paid on cows- tested lor more than four months. The three highest returns in the association were: Cows . A vc rage. G. P. Harrison ... 73 357.10 J- Green 36 346.58 J. E. Alemli 108 337.96 The average for all cows tested for 100 days or over was 278.581b5. There was more interest in testing for 'he ensuing season, additional herds having joined up and it was to be hoped that the past season’s high record would be beaten.

Shed Inspection. “Between testing periods inspection a l visits have been paid to sheds and machines. A much improved standard of building and equipment is now in use. The gradual, replacement of galvanised iron piping by tinned nidisel piping in milking machines is a big improvement, and makes for more sanitary conditions, provided boiling water is used for washing. Some nonacid milk was produced. Invariably this condition is found to be generated in sheds and utensils improperly cleaned. Old perished rubbers used for milk tubing holds contamination and are the cause of many defects in the making of cheese. The importance of replacing old rubber and gusty utensils is very great indeed and essential to success.”

ELECTION OF OFFICIALS. Four nominations were received for three ordinary vacancies, and Alessrs J. F. Kiley, G. H. Aleuli and J. 18. Murdoch were elected, the other nomination being Air E', Scott. Mr H. Corkill was elected to fill the extraordinary vacancy owing to the death of Air J. Daley. The candidates briefly returned thanks, Air Alurdoch stating that be had accepted nomination only, for the three years, for he believed in younger men coming forward to fill the position on the board. He referred to an important matter now engaging attention of the direction's, that of giving assistance to suppliers in need. Other companies were keen to get suppliers and Jell’s must endeavour to retain theirs. The board would not make the suppliers responsible for any amount, but they hoped to arrange by means of tlie rural credits or other sources.

THE N.D.A. 'the chairman said that a proposal /or re-adjustment had been made at the annual meeting of the N.D.A., and Jails was asked, as their share, to contribute the sum of £668. Ho did not favour P.N’s., but it was for the shareholders to decide. Air T. York said the N.D.A. had made losses and had already received a good deal from the company. He said it would be better to 1 cut the loss and he .moved th© request be refused. Air El. Scott seconded. In reply to Mr Harrison, the chairman said the industry had received many benefits—machinery at cost price plus expenses. The association had re-1 ceivecl only small annual subscriptions from companies, and while , in past years it had controlled shipping and insurance had done well. It had certainly been a material benefit. The motion was lost.

GENERAL. The chairman said nothing had been done in regard to the sale of whey, but he hoped there would be further proposals made. The whey company at Edendal© had manufactured their product, and it ivas good and relished bv stock. Ho considered it would’ be good to get rid of the whey question. It vasj agreed that the annual meeting could not very well be held earlier in the season. A hearty' vote o<f thanks was accorded the ladies for supplying luncheon. At the first meeting of the new board Air J. B. Alurdoch was re-elected chairman.