CO-OPERATIVE DAIRYING

Hawera Star, Volume L, 28 August 1930, Page 6

CO-OPERATIVE DAIRYING

T. LL. joll company INCREASED PRODUCTION There were 110' suppliers and shareholders present at the annual meeting of the T. L. Joll Dairy Company at Okaiawa yesterday, Mr J. B. Murdoch, chairman of directors, presiding. In moving the adoption of the report and balance-sheet, the chairman said that he would first mention the fact that the pay-out ror tne previous season reached Is 8 T-Sd, the final clean-up being a very g’ood return for suppliers. In regard to the present season, the administration of the industry was facing troubles concerning quality of cheese production. It was a significant fact that years, ago, when there was not the machinery, and facilities of the present day, a. better quality of cheese was made, but it was agreed that more work was then put into the. manufacturing, while more whey was loft, in the eurdl now.

Too often it was being said that the -cli;:esc- was' bad, and lie did 1 not. believe it. Actually the 'Old'Country was having a hard time and the purchasing power of the people was restricted. While' he admitted there was room for improvement he did not- believe the Statements that the cheese was bad. The restriction in purchasing power probably had something to do with the question of the complaints. Tic was sure there were not the defects in Now Zealand cheese that were said to be .by some people.

WANING PROCESS Waxing was- a matter on which it was difficult to form a definite l opinion, Last year it I was made -compulsory to leave fourteen days before waxing, but it was uncertain whether even that period would, obviate detrimental effects. Reports from Home stated that waxed cheese, when, cut, showed signs of “dripping” or Sweeping” as it was called. If the quality was not affected then this ill per cent, more could -be returned to suppliers. 'The manager, -he said, had doubts as to the advantages of waxing, which kept in the moisture before going on the London market. It iwas not noticed in umvaxed 1 cheese. At Massey College observations were being made in connection with the matter. Apparently the merchants had not raised any objection until the latter part of the season and it. was now up to directors to consider whether or not they -should wax.

STAND A R DISA TION. * In regard to standardising, Mr iMuri doch said that the milk of the factory had 'become richer and richer and the j quality had gome up since- the start of the company from an average test of ■ I 3.7, to the present 4.25. A tremendous 1 1 difference, and it was doubtful if they ' could make the best cheese with milk testing so high. In Holland, for in- ; stance, cows were nearly all Holsteins. The object of standardising was to remove some of the fat and to absorb the rest in the cheese. . It was in the minds of some that this separating altered the- basis of fat to casein and did not give a natural article. Some companies were for cutting out standardisation till the end of the year and going in for it during the autumn months. The trade did not appear to give any information, and they could not got anything from' He 'Control Board or the Department’s representatives, so they had no information to decide if it was good or no good. They had received no conclusive reports and I with so many experts in England this Iwas distinctly a failing in the i ruins-

try- It would appear that a larger margin c(f fat would be required in the- future, but, so far they did not know whether to standardise. Last year there, was 4.76 finest, in their output, 94 per cent, first and .55 second. Not long ago they had; as much as f> per cent, second and the decrease was certainly due to a better quality oJ ! milk. 'The payment by grade for milk might be advisable, but the 'hnmaiu element had to be considered, A grade might be given to a supplier which was not, warranted, and there was nothing to keep a man from taking inferior milk to another faetorv.

THE OUTLOOK. Last year the company consigned through Messrs Lovell and 'Christmas land Messrs Lonsrlales Ltd., which firms had returned about the same figure, and it was decided to consign again i through these firms, leaving the option to the company to sell if circumstances warranted such action. There was at the present quite a different, outlook from, that oif last season at this time, when the position looked one of the best, .'with cheese at. from. 90s to 100 s, but it worked down until it reached as low as 70s and swinging from. 70s to ‘Bos. This season they wore trying to see what the market was going to- do. No one, was offering to buy and there was no indication as to the probable position, and it was most difficult to know Avhat to ( do. One point in favour this year was that stocks l held were lower than, last, year. He hoped) trade /would improve and if so a better price would probably be secured.

BALANCE-,SHEET FIGURES Referring to the balance-sheet, the chairman said they would' notice that the. rebuilding reserve stood .at £7500, set aside to' pay for tbe 'Kapuui factory, by paying off the Bank overdraft in five years and now the last, payment had been made and the .amount would now be- available to distribute tc; suppliers. In the face of present conditions the directors decided to do no more building at present, unless absolutely needed. The assets were practically the same -as last year, with the addition only of a cottage and additions to pasteurising plant at a cost of over £7OO.

If the cheese made realised as much as full cream cheese, then the company would secure Id' per 11). more bv standardising, because they made butter tci that amount. Stocks of cheese had been taken in at '7ls in'London and now there was a balance in their favour of about 6s, because quotations were at rhe present time about 775. The charges for manufacturing had increased slightly, because of the, higher cost- of: storage and a larger amount in repairs and renewals. In regard to fuel, they had to use coal now because firewood iwas not obtainable. (Suppliers would) have noticed: a concrete stack at Palmer Road, erected to effect eeonomy in coal consumption in the generation of steam -and costing about £220. It was most economical and they hoped during the season toi save half the cost of erection. The charges to f.o.b. were 3.47 d, as compared with 2.4'7d in the early days. Now, however, a good; contract had been made with the railways and a

considerable saving had been made in the haulage* to iPatca. The directors had tried to- get more information in regard! to the scheme put, forward some years .ago by Dr. Harding for dealing with- the whey byproduct. A factory had- been set up at Eden dale, and a cattle food manufactured which was quite good. It had,' however, been found that /when sent: Home, it had to meet the- competition of cheaper foods from Europe and in consequence a sale was difficult, tel find. The only salvation was to use it for consumption in New Zealand only. The article was palatable for calves, pigs -and poultry. Unfortunately, Dr. Harding could not- come up to put. the matter before them, tout | had he done so lie thought, suppliers 1 -would have accepted his offer. Two casks of the food had beeni secured and were being tried by suppliers, when a report would bo submitted.

QUESTIONS. In reply to Mr Betts, the chairman said that no additions were to lie made at present at Okaiawa, though the directors recognised the need for more room in view of the expansion of the supply. They would probably get some suppliers to go to their other factories. In reply to Mr Putt, the chairman said he believed too much had been made of defects in the cheese, but lie did not blame the Press, because they had merely reported public discussions. It was unfortunate that so much had been made of it, seeing that all were trying to improve the quality. It was certain the cheese did not deserve the unfavourable comments.

The question or going back to uupasteurised standardised cheese was raised by Mr E. Scott, who considered this would make a better product. Mr Singleton had said somej'Ciirs ago that their cheese was the best in the world, and now lie said it had slipped, and lie thought pasteurisation might have had something to do with it. They received top price for unpastourisod cheese some years ago, and lie suggested trying it out at one or two factories. He objected not to the expense of pasteurising, but on the question of quality. The chairman said that the departiment strongly recommended pasteurisation, and he could not understand why graders did not give the same grade to similar non-pasteurised cheese. Air Harrison said this used not to bo the case and ho advocated trying out full cream choose, say, at one factory, as an experiment, because everyone seemed to be in a fog. He asked what instructions had been given to managers. Standardised cheese, he believed, could bo good, but not if filled with water.

The chairman said that instructions given were to make the best cheese possible, and he believed more work would be put into the manufacture than before. It was considered that cheese could bo made just as good from standardised as from full cream. The merchants in London could offer not a; penny more for the full cream, and he wondered if it was wise, for the com-1 pany to experiment, in the face of that fact. The South Island got no more for its 'full cream cheese. Mr O. Robertson said he eonsiderccT a great responsibilitj* rested on the

leaders to make the best article possible and better than ever before, whether other companies did so or not. The race for yield, he said, had got them into trouble and all must admit that quality had slipped. It; was a national question and they must not let the trade slip away to other countries, but to make the best quality, standardised or not, and they would come out bestin the end.

The chairman agreed on the damage done by the race for yield, but said that, there were other factors, farms being much more heavily stocked, while the land had not the original virgin fertility. In reply to other questions, the chairn an said they had not definite advice about waxing. Mr Betts said the trade was opposed to the process. The chairman added that the biggest consumer of our cheese was the working man, anti lie did not care much :f it vtt finest so long as it ■was'palatable end had the nutriment that enable 1 him to. do his work oh it.

Mr Harrison suggested getting information for themselves and said the cost of trying it out at “one or two factories would be very small spread over the whole company. He thought “full eiearn” might show a premium, and un- ' loss they helped themselves they would Continue in the “fog.” The chairman replied that, in view oi: the indefinite information, they had decided to make no change at present. Mr Putt suggested that, as other factories were going in for full cream cheese, they should be “Scotch” and get tin; information from them. Mr Chapman said he regretted skimmining had been allowed at all, and that if they went back to the old methods they would soon come into their own. Mr T. York said it was undesirable to go to America for crates while they had money in the Box Company. The chairman replied that it was a matter of £ s. d., and that imported timber could be landed at such a price that they could not compete with it, and white pine was fast diminishing. In reply to a supplier, the chairman said that they were not decided about the advisability of joining the pool, and with the difficulties he foresaw ho did not think it would eventuate. This closed the discussion and the motion was carried.

HEED TESTING. , The chairman read the report of Mr Kent, the tester, which said that daring the past season 3 800 cows were tested, the average for those eomplet--ing the season being 292.511b5., with an average of 247 days. The leading returns were:— .T. Green (3(1 cows) 381.391b5. T. W. Prcstidge (59 cows) 3<58.581b5. J. E. Meuli (103 cows) 357.491b5. The highest cow was that of Mr T. W. Prcstidge, with a production of 600.331b5. in 284 days. In shed inspection (171 visits wore made. Although the general average of premises was fair and equipment was on the up grade, machines can only bo kept in good order by the daily use of boiling water.

ADVANCES TO SUPPLIERS. After some discussion on a proposal made that the Rural Credits Board should supply money for advances up to £2OO for * suppliers, on promissory notes endorsed by the company, it was agreed, on the motion of Messrs Bridge and Caldwell, to approve the scheme and authorise the directors to carry it into effect. Mr O. Prey berg, district supervisor, was present and gave details of the scheme. GENERAL. Discussion took place on the question of taking shares in the N.D.A. and also of making an advance on promissory note to assist the South Taranaki Herd Testing Association, but both propositions were turned down. Messrs W. K. Corkill, J. N. Crocker and J. W. Paterson were re-elected unopposed to the directorate. Messrs H. A. Lennon and W. J. Tristram were reappointed auditors. A vote of thanks was passed to the ladies for so kindly supplying refreshments to the meeting. HURLEYVILLE; COMPANY.

RECORD PAY-OTJT.

At the annual meeting of the suppliers of the Hurleyville Dairy Company yesterday, presided over by Mr John Hurley, it was announced the 2d per lb bonus was available, bringing the total pay-out to Is Bd, said to be a record for the Dominion. The ■chairman .said that- the directors sold the output and that, but for high cost of working, the price would hove been at least Id move. In their 37th annual report the directors stated the past season’s cheese had been disposed of through the Marketing Association at Bgd to the end of December and the balance < f the season’s make at Bfd f.o.b. ocean steamer. Suppliers had receved an advance over the whole season of Is 6d a lb for butter-fat. The directors recommended that a. dividend of 6 per cent be paid on the paid-up share capital. The statistics for the season were: Total mlllc received, 5,168,2931 b ; total fat, 208,370.41 b ; average test, 4.03.

) Used for standardised cheese: Milk, 532,6671 b; fat, 21,205.71 b; test, 4 per I cent. Milk used for cheesemaking: Milk, 4,635,5261 b; cheese (factorv weight), j 533.7611 b; fat, 187,064.71 b; milk to one pound of cheese, 8.71 b; cheese to one pound fat, 2.861 b; cheese to total- ! fat. 2.561 b. The weight of cheese made from each pound of butter-fat used for the manufacture of cheese was 2.8611>. No butter was made. In moving the adoption of the report and balance-sheet, the chairman stated it had been said last year that the company would sell provided it received an offer of about Is 7d. That had been done and sales had shpivn an advantage over those of consigning companies. The company had made a standardised article last year, but from the complaints received it had been made evident .that the consumer did not want standardised cheese. Mr Hurley thought standardisation a curse to the industry and the directors this year had reverted to making full cream cheese. The report and balance-sheet were adopted without discussion.

GENERAL. Messrs D. Hurley, junr., and W. T. Locker were re-elected to the directorate unopposed.’ Mr S. R. Veitcli was reappointed auditor. The chairman, in reply to a supplier, said that the grading of cheese was not -satisfactory and he considered it should he done in the Old Country. It hail been a mistake, he said, to have the national brand and to use the word “standardised.” He believed the consumers did not want it' and would quite likely boycott it. At a subsequent meeting of the directors Mr Hurley was re-elected chairman.