KAUPOKONUI DAIRYING

Hawera Star, Volume LII, 6 September 1932, Page 8

KAUPOKONUI DAIRYING

DIFFICULT VEAR REVIEWED

MORE PROMISING OUTLOOK REPORTS TO SHAREHOLDERS. There was an attendance of about 200 (.suppliers and shareholders at the 35th annual meeting of the Kaupokonui Co-operative Dairy Company, held at the factory yesterday. The report for the year stated that owing to an extremely dry autumn the season was not favourable to production, and, showed a decrease of 10.84 per cent on the previous season. “An average advance of 10jd per lb butter-fat was made up to June 30, and the appropriation account shows a further £11.374 12s 6d as available for distribution,” continued the report. ( “The directors l recommend that the usual 5 per cent interest on all fully paid-up shares' be paid, leaving an amount sufficient to make a further ■nayment of approximately :id per lb butter-fat, tints making a total payout for the season of llld per lb, exclusive of interest on shares'. It is anticipated that a part of this balance of fd will be paid out on August 20. The retiring directors are Messrs J. J. ' Landers and TV. D. Gulliver, who, being eligible, offer themselves for reelection.” . . ... , . Factory statistics compared with last year’s were: Pounds of milk received, 89,028,798 <76,252,593) ; lbs of butter'fat received, 3,003,570 (3,372,305); average test, 4.355 (4.422); factory pay-out, (Hd); number of suppliers, 242 (241); total charges up to f.0.b., 3.139 d (3.358 d). N , Used for cheese-making, Pounds or milk, 66,688,341 (66,254,767); lbs of butteivfat, 2,886,572 (2,912,386); average test, 4.328 (4.396); lbs of cheese made (factory weights), 7,374,735 (7,870,255); lbs of milk to I.lb of cheese, 9.04 (9.23); lbs of cheese to lib butter-fat (gross), 2.55 2.70); lbs of cheese from 1001 b milk, 11.06 (10.83). Used for butter-making: Pounds of milk, 2,338,455; lbs of butter-fat, 119,998 ■ average test, 5.131; lbs of butter made, 139.874: lbs of butter made from lib butter-fat, 1.1656. TYhev butter: Pounds of whey butter, 187,208 (177,968); lbs of whey butter per ton of cheese, 56.8 (50. G).

REVIEW BY CHAIRMAN

In moving the adoption of the report and balance-sheet the chairman (Mr E. T. Burke) said that the season had been one of the worst for a good many years. The statistical figures were satisfactory, but prices, were very disappointing. There was a serious drought, making an 11 per cent decrease in output. It would he realised, he added," that the decrease had been partly due to. some farmers using less manures, and he considered, they, would be well advised not to economise in fertilisers. There were other avenues on the farm where they could show economies rather than by using less manures. He knew it had been a very hard year, but it would pay farmers to put by a. little t 5 assist in getting manures.' They would help themselves by gettting more off their farms and also” assist the company in keeping costs down. He hoped that next year conditions would be better and costs still further reduced. In regard to grading, the chairman said thev knew it .was compulsory to grade milk on the curd test. But he thought there had been a tendency to rush "things and that it would be better to go slow in the matter. If they had all to pay on grade it would take a lot of time, because they would need to grade daily and it would be expensive. Later apparently it would come 'in and then would come to stay.

The reports proved that there was very little complaint about the cheese. This was a welcome indication, because the only way to secure good (prices was to have first quality. Suppliers could help the industry bv maintaining good quality, realising that first quality meant good prices. He referred to the question of whey butter, stating that to say it affected the price of the creamery butter was but a bogey. Actually whey butter was- a large factor in paying the expenses of the company and should be allowed.

'Flic “iron fireman” installed had 1 effected a great saving in coal and they intended to put one into every factory but one, realising that they could not do without them. They were fairly expensive, but paid for themselves in a vear. BETTER TIMES AHEAD.

The chairman said he was convinced better times were coining. Cheese prices had been low, but the dairy farmers were better treated than any other industry. They had a certain pay out while other primary industries had very br.d returns. Bacon had been very cheap and this had affected the price of cheese. But- Denmark found that her prices were not paying. The- prospects, lie added, did look better than in the past year. Referring to the balance' sheet, the chairman said that mortgage debentures had been reduced by £IOOO and that though depositors appeared as £IOOO more, £2,600 had now been paid off Fuel and other manufacturing charges were reduced. Half the cost of the iron fireman had to be paid during the year. Actually, however, they could have'manufactured a good deal more produce for the same cost. Nearly all other charges too were down..

In regard to repairs and renewals they wore £-150 down and perhaps some might think they should bo further reduced. He assured suppliers that directors were out to reduce then: wherever possible. Certain expenses however, could not fie avoided, but there were some that would not recur. The directors were anxious to see then: reduced and would not spend anything that could be avoided. The charges to f.Oi.b. were 3.139 d, which was less than last- year and if the supply coulci be increased, they could have paid out llfjd. A decrease in production meant an increase in cost of manufacture.

Referring to the store the chairman said there- was a small loss o! £44. It had been a very difficult] year, but they had reduced the debts by £775, a very satisfactory result He urged that the suppliers should help more than they did because the store gave service and the prices were competitive. 111 conclusion he added that if any supplier needed help the company would he reasonable 111 its treatment. Ho also took the opportunity of thanking the .staffs of the office, factory and store and also the suppliers, without whom there would he no company at all.

QUE3TICNS- A N SAVER FID. Tll replv to Mr Haseltine, the chairman said that the fact of interest being not- much les.s than last year was 'because of the number of advances made to suppliers. Mr O. T. Parry said he had analysed

the balance sheet and congratulated | the directors on the way they had distributed the pay-out to suppliers They had paid out “to the hilt” and this was a wise policy in a hard year. But he said lie could not congratulate them in every respect because the figures showed a weakness in running the company. The capital account showed that shares had increased by £313 during the year. The company liaa paul oil £IOOO in debentures, but depositors had increased in amount. The chairman said the depositors were mainly the company’s agents. Mr Parry said this was not good and showed a weakness in the business. He added that advances were increased bv a large amount, but the chairman said that was advances against bonuses and much of that was now repaid In reply to a question bv Mr. I arry the chairman said that the stocks or cheese in hand at the time of balance included 4050 crates afloat, valued^ at 57s 6d and 2456 crates in store- at oos. “Plenty high enough,” said Mr. Referring to sundry debtors the chairman said that this, amount included a rebate due from the TT est Coast Refrigerating Company. Mr Parry said suppliers’ advances were increased by £369 and the Mamua Loan Company by £2096. The chairman remarked that these were • absolutely secured. The figures might be hard to follow, but the company’s position had improved by a considerable sum. Mr. Parry asked what was the cost per ton of ’cheese sent from each factory. He considered the ’fuel cost was the highest on the coast and he worked out the cost per ton at £l. . In reply to a question the chairman said the Control Board levied costs on a tonnage basis. Mr Parry said he had made a rough sketch of the figures and found that increases in two years were shown as follow: Rank overdraft, £1266; deposits, £9731; Manaia Loan Company, £1313. Answering Mr. Parry the manager said that he made out each month the total cost per lb. of Initterfat and he added , that it was difficult to say how these compared with other comP ' UUCb REDUCTIOX OF DEBTS.

Mr,. A. H. Christie said he did not think Mr. Parry’s figures were, correct, and the latter said lie would challenge Mr. Christie any day to debate the question of the balance sheet. The chairman said that actually the eompanv had reduced the debts during the year by £3.000 It was pointed out by Mr \\ aiuiej that it was sound finance to restore the Rennet Company to the balance The secretary said that, m considering the position, they must take the total liabilties and the total assets and these would .show an, .improvement or £3457 for the year. He added that the company had secured an advance o„ £3 COO against produce in store. ~ Mr Henwcod said that in comparing Kaupokonui with other companies, some of which had paid out a haltpenny more, three tilings must* be opnsidered —the cost of manufacture, yield and the price received. He estimated that Kaiupokonui received considerably less than, some others. In reply to Mr A. Hastie, the chairman said'the company was not tied to any agentsl tout could sell as it wished. Mr C. A. Burke said that, in regard to tire f.o.b'. charges, the directors were always endeavouring to. see. where they could effect reductions and hoped they would be able to bring them down to 2.75 pence. Answering Ma* Haseltine, the chairman saul the company had saved annually £3OOO by shipping through Patea ais compared with New Plymouth, that is milder the present conditions. The motion for adoption of the report was seconded by Mr 'Gupper th and carried. |

POLICY WITH STORE

Mr J. Russell asked if it was fair and right to employ so many single' men when married men were unemployed. He considered it- most unfair. He aLso referred to certain articles in the store which could be. purchased very much more cheaply at out-side stores. Referring to the first question, the chairman .said that where other tilings were equal, the directors employed married men. He added that the store set a very high standard of quality in its stocks.

Answering a supplier, the chairman said that shares in the Box Company had originally been taken up on a tonnage basi-s and when it was formed, Kaupokonui was one of the largest companies. The general manager said that last ear c-rates cost Is and thi;s yea; Is 10 1-Sd at Hawera.

Answering Mr Rogers, lie said that, to heat water sufficiently for suppliers’ use would require a 200 fli.p. generator and the cost would equal about a third of the total fuel charges, somewhere about £IOOO.

Mr H. Wills gave details of some experiments he had made in connection with an electric heater, showing that in 25 minutes after he reached home with hot water from the factory he hacl it boiling. After using it for two sets of cups it went down to 190 degree's and -for four sets to 180 degrees. H.e strongly approved of the arrangements for heating water at the factory.

A director: The first tiling we have heard to have been done right. Answering a supplier, the secretary said the cost of running the three lorries and the manager’s car was £344, and with wages £445.

Air E. Si. Bennett said he considered a separate account should be kept for the car.

TIAIE FOR. MILK SUPPLY After some discussion it was resolved that the suppliers should all bo at the factories by 9.30 a.m., a motion to make this 9 a.m. being defeated. Air (J. Aluggeridge said that if all would come early this would help to lessen, the cost of production. Answering Air Alead, the (general manager said the cost of delivering a ton of produce to Hawera- was 7s and there was no freight rate better to be got. In reply to Mr Parry lie said the, ompany now took all its rennet from the Rennet Company and the boxes and crates from the Box Company. Air Parry: I hope you make a good deaf. " , The chairman : We a ro out to get the cheapest price. He added that it was impossible to compare factories on the rail with their own, which was miles from the rail. In reply a question, the chairman -aid that so soon as a vat was empty, a man was discharged. The general manager added that this was governed by the union. 111 regard to cost of manufacture he said that if they had had the extra, supply ■>f milk They could probably have reduced this to 2.9 pence. The chairman stated that the cost of converting part of the store into the office had been £75, which had been charged to repairs and renewals. He added that the mortgage to the Department of Agriculture had been ’•(mowed last year at 6 per cent, interest. Answering Air Rogers, the chairman said they would like to repaint some of

tho roofs, but were striving hard to keep down costs. Mr D. Murphy, said that the cost of manufacture had been the highest in Taranaki this year. Kaupokonui had i good supply and every natural advantage to work a factory, but the •only bright spot was the Cartage. He considered it was time costs were reduced.

CARS USED BY MANAGERS

A resolution “that employees who use a car in their work should in future be given a straight-out salary and maintain the car at their own 'cost' ’ was put to the meeting and lost by a large majority. * The store manager said that last year some shareholders .urged the elimination of canvassing and this liadi led to a loss of store business. A suggestion that employees at the Manana store did not practise civility to customers was warmly combatted by Mrs Sutherland. ' Mr Rogers' added that his experience was that if anything was not in •stock it was always placed on order if required. Answering a sunnlier, the chairman (said he was hopeful there would be a further payment to come for the season. He stated 1 that the season’s output for 1932-33 had been consigned through the same firms as last year. ■He considered the present directors were best able to know where they were likely to get the best returns. QUALITY OF MILK.

In a brief review of the season the general manager said the quality of the milk had been in some cases unsatisfactory and he urged all to try to do better and to get first grade milk. He said lie felt sure a considerable improvement would he effected by compulsory .grading. In regard to nonacid milk there was no special flavour to indicate this fault.

The store manager (Mr A. Muggeridge) read a brief report on the •operations of the store, showing that there had been a material improvement in the position during the past three years.

ELECTION OF DIRECTORS. Six nominees were proposed for the two vacancies on the board of directors. These were Messrs J. J. Landers and W. D. Gulliver (sitting members) and .Messrs O. T. Parry, A. W. ■King, D. Corbett and E. S. Bennett.. A ballot resulted as follows: J. J.' Landers 304, O. T. Parry 277, AY. D. Gulliver 252, A. W. King 245, D. Corbett 1:28, E. S. Bennett 35. Mi- Parry briefly returned thanks, assuring shareholders that he would always do his best for the company. Mr Landers thanked shareholders for their continued confidence, and promised l to give, as he had always j done before, the 'best in his power. j Mr Bennett said he was still not too satisfied and honed to see Kaupokonui J beat all others. Messrs AYalkley, Cameron and Laurence were reappointed' auditors. The chairman’s honorarium was fixed at the same figure as last year and the directors’ fees were reduced by 10 per cent. A vote of thanks to the ladies for supplying luncheon and afternoon tea was carried hy acclamation.