DAIRY YEAR

Hawera Star, Volume L, 5 August 1930, Page 7

DAIRY YEAR

H A WEIU CO-ORFJ {.AT IVI COMPANY.

AXM'AT, GENERAL MEETING

The thirty-fifth annual general meeting of shareholders of the Ha were Cooperative Dairy Factory Company. Ltd., drew an attendance of 5)5 to the Winter Show Buildings at Haw-era yesterday. Mr J. El. Corrigan (chairman of directors) presided. The report stated that the pav-out for the .1928-25) season (including interest andi the amount applied in payment of shares) was Is 8 l-16d per lb butter-fat. “This figure slightly exceeds the estimate given in the last annua! report.” continued the statement. “This 'season all cheese has been sold with the exception of 1860 crates, which have been taken in at equal to 7.kl per lb f.o.b. On the basis of the accounts, the estimated pay-out for the season will be Is 7d per lb butter-fat ('including the amount applied in payment of shares) and adding share interest the total becomes Is 7.2 d per lb butter-fat. Interest on shares has been allowed for as usual. and 1 absorbs £2315 8s 3d.

The statistics accompanying the report gave the following details with corresponding figures for the previous season in parenthesis: Pounds of milk received. 55,988,326 (52,793,570); pounds of butter-fat (milk), 2,419,700 (2,224,322); pouuds of butter-fat (cream), 1.360,553 (912,947); total butter-fat. 3,780.553 (3,137,269). Average test (milk) : Glover Hoad, 4.438 per cent. (4.318 per cent) ; Tawhiti, -1.247 per cent. (4.135 per cent.); Whareroa. 4.421 per cent. (4.298 per cent.); Tokaora, 4.208 per cent. (4.159 per cent.); Fraser Road, 4.210 per cent. (4.102 per cent.); total average test (milk). 4.321 per cent. (4.213 per cent.).

No. of suppliers: Milk, 219; cream, 302 ; total. 521 (496). Butter-fat per cow, 265; per acre, 1331 b. Total charges (including repairs and depreciation up to f.o.b. ocean steamer on cheese and' casein worked out at per lb butter fat, 3.06 d (3.27 d). Used for cheese-making: Pounds of milk. 52,470.917 (52,031,588); pounds of butter-fat. 2,267,218 (2,187,645) ; pounds of cheese made (factory packing weights). 5,624,710 (5,689,645); total. 2511 tons 2qrs 141 b (2540 tons Iqr 171 b); pounds of milk to make lib cheese, 9.328 (9.144) ; pounds of cheese to lib butter-fat. 2.480 (2.600); pounds of cheese from 100 Tb milk, 10.719 (10.93); average test. 4.320 per cent. (4.204 per cent.).

Home separation department Pound's of butter-fat in cream received. 1,360,853 (912,947); pounds of butter made, 1,656,508 (1,110,854); total. 739 tons lOcwt Iqr (495 tons 18 cwt Iqr 101 b) ; pounds of butter made from 11b butter-fat. 1.2172 (1.2167).

THE CHAIRMAN'S REVIEW. “I wish to review briefly the year s working and to comment on matters in connection with the business of the company which may be of interest to members,” said the chairman in moving the adoption of the report and balance-sheet.

“Tlie past season, from a production point of view, has been a good one, and m so far aw price or pay-out is concerned, must be regarded as satisfactory. The milk supply to the company has increased by 51 per cent, compared with the previous season, and butter-fat supplied shows an increase of 6 per cent. The average fat test of the milk again shows an iuereaise, having risen from 4.213 per cent, to 4.321 per cent. Glover Road factory test has reached the high figure of 4.438 per cent., and Whareroa factory 4.421 per cent. “There is evidence that our suppliers are going in for more top-tlressing, and the company has put through a large number of orders for fertilisers for suppliers. Following a suggestion made at the last annual meeting, an attempt was made to ascertain the butter-fat production per acre over the territory served by this company, and: the figure works out at 1331b5. Some of the suppliers to the company have very high average tests, and four taken at random show: 4.99; 4.86; 4.86; 4.69.

DIFFICULT PERIOD. ''The season just closed lias been a difficult one for directors, in both the manufacturing and marketing departments of our operations. Standardised cheese was made at all factories, hut no attempt was made at heavy skimming. The average tat extraction for the season was 11.6 per cent. The increased income from standardisation is between f[d and Id per I'b butter-fat’. “The quality of our cheese hasi been somewhat disappointing, hut bv care in handling by our agents we have avoided any serious loss. For the coming season every effort will lie made to achieve an improvement in quality, and 1 am sure this can be. done. “In the marketing of our produce, the directors, after consideration, felt that sales f.o.b. would 1 likely be. more profitable than consignment, and every effort, was made to effect, sales. Tills could only he done in small parcels, and the company’s agents <1 id good work in effecting sales of 21,192 crates out of a total make of 34,168. This lias enabled the company t.o pay out very well indeed in comparison with other factories. The results in the home separation department are- quite satisfactory. sales of butter enabling, a payout of Is fad to he made.

DEBT RFDUCTIOX. ‘Provision is made in the accounts for the issue of fully paid 6 per cent, shares, equal to Rl per lb butter-lat, and it is pleasing to note that the> company's external debt, which stood at the figure of £26,000 when the debt reduction scheme was ombaruect on, is now down to 02672. Tims in one more year the company should he. tree from external debt, which w?il be one year earlier than anticipated when the suppliers were asked to approve the debt reduction scheme. Tins position is very gratifying, and the directors desire to express their appreciation of the loyalty of the shareholders, in supporting them in the matter. “Daring the year just closed attention lias been given to keeping the factories in good repair. The. policy ot the directors is to meet year by year all necessary repairs, and not to attempt putting oil' liieeting the expense, .which inevitably loads to trouble. Interest on shares has been allowed for as usual, absorbing £2343 8s 3d. J.t is interesting to note that 86 per cant, of this interest is 'paid to Suppliers and only 14 per cent, to 'dry’ shareholders. Thus it "can he said that this company has no problem in regard to its ’dry’ shareholders. DECKEAtfKD OiIARGES. “It. ivill he noted that some items in manufacturing and maikcting account show increases over last. year. This is ace-omitcd ter by increased -supply. The total charge.: up to f.o.b. show a decrease. hut the peculiar situation regarding rates of exchange ruling accounts. to seme .extent for this. 'fine company’s auditor has gone carefully into the accounts of both the. cheese and butter manufacturing operations, and has made a comprehensive report, which will be before you.

“The director*; would, like an expression from the suppliers in regard to tho question, of the supply by the factories of hot water, which costs the company a considerable sum each year. The attitude of the directors is that they desire that the company should give the best possible service to the suppliers, and act for the greatest good to the greatest number. They consider, however, that there are grounds for -saying that the supply of hot water is abused in some eases —through some suppliers taking too much, and in some instances through suppliers using til© hot water for purposes for which, it is unsuitable. “It is unwise to attempt any forecast in regard to the coining season, hut 'without being unduly pessimistic it will be prudent for us all to keep our expectations on a conservative basis. Tho. Dominion has .produced more oil the goods from the soil than it seems can ho reasonably consumed. Throughout the world there appear to be only two items of the product of the soil at tho [ present moment which! are in keen de'niaud, or in greater demand than sup- [ ply. These are gold and tea. Tho I abundance of other commodities from I the soil naturally 'lias a, tendency to keep .down the prices. \Ye have, however. had such periods before, and with reasonable economy there should be uo need for fear of the future. “I would like in conclusion to- thank the staff for the help they have given the directors during til© year, and ray fellow-directoi’s personally for their assistance and support at all tunes. Mr Corrigan moved the adoption of the direeors' report and also that presented l>v the auditors (Messrs Suisted and McKeimo). The motion to adopt the reports and the balance sheet was seconded bv Cl Ogle. After an appreciable pause and inquiry bv the chairman the motion was declared adopted. Air. S. J. Bennett: Does that mean there is to be no discussion of the balance-sheet ? You dun t give us Hindi of ii. chance. Mr. Chairman. The chairman-: I asked if there was anv comment and tho meeting gave- no reply. However, T don’t wish to bark discussion and will re-open the matter if such is wished. Air. Bennett: Then how is it that the bank overdraft, which was shown as a liability hist year, is not now included H The chairman: Because there is no overdraft. I understand. (Laughter. ) Replying further to Air. Bennett as to the increase in fuel and power charges, the chairman explained that production had gone up. The manufacturing charges had. however, actually decreased from 3.27 d in the previous year to 3.06 d. Answering Air, Ogle, the chairman/ explained that some of the suppliers for butter-making were not shareholders and .were charged -Jd per lb| for tile use of the company x: fac-i

lories, as shown in the item £1417 as a payment from the home separation department. INTEREST ON “DltY” SHARES. “Dr.v M slnires bore interest, saidthei chairman in reply to Mr. Bennett. The company always paid interest on fullypaid shares. Only 14 per cent, of the shareholders were “dry” shareholders. Mr. Bennett thought that (> per cent, was too high a rate to pay to dry shareholders. “If you go to borrow money you can't get it at less than 7 per cent..” replied the chairman. ‘‘Until we can buv the ‘dry’ shareholders out they are entitled to the interest. It is the soundness of that business which has made the Hawera Company so popular in Taranaki.” (Applause.) The directors agreed with Mr. Bennett, said the chairman, when the former said it was to be regretted that, in making the appointment of a branch manager, the' directors had had to go outside the company employees. Such action had, however, been necessary to secure a manager of the required efficiency. ' Referring to the union organisation, he gave the opinion it might serve the interests of employees to a greater extent if it encouraged them To train for promotion in positions. STAFF EFFICIENCY. J Mr. Bennett: It seems that flic union} is iiisb out to extract what it can ni| the direction of increased wages, hut is not so anxious to induce its members to aim at efficiency. Mr. M. A. MacKenzie said that the company should try to co-operate with its employees. The chairman : The . company has every desire of doing that, hut since unionism entered here we don’t seem to have had the same degree of efficiency. The National Dairy Association is practically a trading concern, and if we had not hud it competing with other linns, wc would probably have had to pay higher prices for certain commodities, said the chamnan in ieplv to a. question as to whether both the association and the Dairy Board were necessary. They were two different types of organisation. STANDARD USED MILK. During it lengthy discussion of tho standardisation process the chairman explained that the directors had decided to commenc the season by making full cream cheese, Following the recognition given lo the standardised product/ an early parcel of cheese had i been one of tliti best in quality which j had been exported for five or six seasons. but when an endeavour was made Ito obtain too much through the system it- became undesirable.

Following a lengthy discussion concerning the quality of milk and cheese, the motion to adopt the reports and balance-sheet was adopted. Four nominations were received to fill the vacancies caused on the hoard of directors' by the retirement, in rotation, of Messrs A. L. Campbell, H\ E. Johnson and W. H. Reynolds. The three named were re-elected. The auditors (Messrs Suisted and McKenzie) were re-elected. The honoraria of the chairman of directors, the directors, the chairman of the works committee and the auditors were renewed on the same basis as previously. Following a brief discussion it was decided by a big majority on a show of hands to continue the system of hot 1 water supplies from the factories. Votes' of thanks were accorded the chairman and all members of the directorate and the istaff. At a subsequent- meeting of directors Mr Corrigan was re-elected as chairman.