DAIRY SUPPLIERS MEET AFTER GOOD SEASON.

Horowhenua Chronicle, 26 July 1929, Page 6

DAIRY SUPPLIERS MEET AFTER GOOD SEASON.

Quality and Production Shown to be High. Chairman of Levin Company Reviews Position. Top-dressing, Herd-testing, Pigs and Calves Are Important Factors. The mainstay of the Horowhenua district, the dairying industry, was focussed in a few hours’ discussion of business at the 30th annual meeting of shareholders of the Levin Co-operative Dairy Company, Ltd. It was a cheerful gathering, because of the improved condi- * tions that came over the market in the past season, after two years of comparative depression. This feeling was reinforced by the results of a marked increase in production, due mainly to a very favourable summer and autumn, and in part to the development of scientific management of pastures, selection of stock, and herdtesting. The outstanding features of the company’s operations were given in the annual report and the Chairman’s speech. Various suggestions came from the suppliers assembled, an important one being to the effect that the organisation might provide business for the Levin abattoir, in connection with pigs and calves, and perhaps be the means of inducing the Borough to instal a freezing plant. This is the subject of a separate report in the Chronicle. The Chairman made references to the widening possibilities of oversea markets,

and pointed to the ultimate need of replacing the present factory with a new building.

The meeting took place on Wednesday afternoon, in the Century Hall, the chairman of directors (Mr S. A. Broad belt) presiding over an attendance of about a hundred and twenty. Leave of absence was granted to two of the directors, Mr T. G, Vincent and Mr H. Denton. ANNUAL REPORT.

The animal report and balance-sheet, which had been circulated, were taken as read. The report was as follows: — “The directors have much pleasure in placing before you the thirtieth annual report and balance sheet, dealing with the past season’s operations. The. quantity of butter manufactured for the season constitutes a fresh record for the company, being 1350 tons 2 cwt. 0 qrs. 11b., as compared with the previous season’s make of 1104 tons lOcvvt. 1 qr. 131bs. This increase equals 22.2 per cent. Reviewing the past season from the farmer’s point, it has been an exceptional one for production; but we are of opinion that, with systematic top-dressing and herd-test-ing, this record production for the past season will lie eclipsed in future years. “The average advance for the season is Is 5.304 d per lb, for finest grade butterfat, and"a further payment of 2d per 11). butterfat is to be paid, making an average of Is 7.304 d per lb. “The quality of our butter for the post season has been good; ail butter sent through the grading stores graded finest grade. During the season we have received a small quantity of second grade cream which has to be treated separately and disposed of at a much reduced price. The difference in the price paid for the butterfat of second grade cream, and the price received for the butter made from this cream, will have to be reviewed and a smaller payment will have to bo considered for second grade cream. “The high standard of quality which ‘ Lake Brand' butter maintains on the London and Canadian markets enables us to obtain a small premium for our good quality. “Wc have the benefit of farm instruction ana cream-grading, but the improvement in the quality of the cream has not been up to our expectations Suppliers are urged to do their best and keep the quality of their cream up to finest grade' standard., “The farm account piggeries run on the company’s farm have had a. very successful season. The nett profit for the season is £374 I6s 3d, which is equal to a return of 10s fid per ton buttermilk. The profit made has also enabled us to write £l3O by way of depreciation off the pig plant account During the season we have sold to our suppliers a number of purebred Large White pigs, and we still have a number available for disposal. “During the season the Horowhenua Co-operative 'Rural Credit Association, Ltd., has come into operation, and this Association will enable our suppliers to obtain, where necessary, cheaper finance to improve their farms anil herds, . ' ‘•The Company has again financed suppliers for their manure purchases to the extent of £3300, and the same conditions Avill apply to the manure business for the coming season. “The arrangements made by the National Dairy Association, Ltd., for the disposal of the bobby calves on cooperative basis have proved very remunerative to our suppliers. The nett return for calves for the past season was 9s per head. Arrangements tor the disposal of the bobby calves for the coming season have been made, and wc must ask all suppliers to support the eo-operative scheme. “The directors recommend that a dividend of 6 per cent, be paid, absorbing £4'22.‘ This amount has been allowed for in profit and loss appropriation account. The retiring Directors arc Messrs A. S. Death and W. E. Kilsby, who are eligible for re-election. Nominations have been received from Messrs A. b. Death, W. E. Kilsby, J. A. Mitchell, W. J. Summers and J. H. Taylor. “The thanks of the shareholders are due to the staff for the efficient manner in which they have carried out their respective duties. “You will be required to elect auditors for the company for the ensuing year. Messrs «T. L. Arcus and Xleiupsy and Litchfield again offer their services.” TABLE OF QUANTITIES AND AVERAGES. Number of suppliers, 453. Quantity of home 'separated cream received, *6,506,727 lbs.

Overrun 20.969FINANCIAL STATEMENT

'Quantity of butterlat received, .-,500, 3:n.3 lbs.*

95.19 per cent, of cream received, graded finest grade. 4.00 per cent, of cream received, graded hist grade. 0.12 per cent, of cream received, graded second grade. Oiiantitv of butter made, 3,024,223 His.

Average test of cream, 35.4_ pel cent. v

The profit and loss account for the year ended May 31st 1929, showed the receipts to have been ns follows: 'Profit from manufacturing, £11,604_ 5s sd; profit from pig farm, £374 16s 3d; interest, rents and commission, £740 4s Sd; total, £12,719 6s 4d. The expenditure amounted to £12,27/ 6s 4d, lea\iug a balance of £442 to profit and loss appropriation account. The payments 1 were: Cartage, freight, commission, exchange, storage and milage, £7313 4s lOd; travelling expenses, audit fees, printing and stationery, and general expenses, £405 2s lid; maintenance and repairs, £506 8s lOd; motor running expenses, £1557 5s Sd; salaries. £529; directors’ fees, £235; rates, taxes ami insurance, £292 9s sd: depreciation, £1065 12s fid; dairy farm instruction and levy, £373 2s 2d.

The statement of the farm account piggeries showed the following position': —Receipts: Sales of pigs, £1583 10s 3d; show prizes, £G ■ 3s fid; stocks on hand, £395 14s Sd; total, £1985 8s 2d. Expenditure: Stocks on hand June Ist, 1928, £363 14s fid; pigs purchased, £323 (is 7d; wages, repairs aind renewals, carting, etc., £360 10s 7d; feed ami butter milk, £433 0s 3d; depreciation pig plant account, £130; total, £12,277 fis 4d. Profit transferred to profit and loss account, £374 Ifis 3d. The position of the profit and loss appropriation account was as follows: — By balance, 1928, £348 3s 2d; by balance, 1929, £442; total, £790 3s 2d. To provision for dividend, 1929, £442. To balance, £348 3s 2d. Assets and liabilities were set out as under; — Assets.—Land and buildings £3830less depreciation £330 £3500; machinery and plant £2165 12s 6d—less- depreciation £305 12s 6d —£1860; motor vehicles £l6so—less depreciation £550 —£1100; office furniture £ll0 —less depreciation £10 —~£loo, investments Inscribed stock £IOOO, shares Wellington Dairy Farmers’ Co-op. Association £i; shares Co-op. Dairy Producers Freezing Co., Ltd., £247u 10s -£3476 10s; sundry debtors, £17,906 16a 2d; stocks on hand, £ll,OlO 17s lOd; Bank Australasia fixed deposit, £3000; Bank Australasia current account, £7299 17 Id; total, £49(254 Is Id. . Liabilities. —Authorised capital, £lO,000 shares at £2 each £20,000 —less unallotted shares £43B6;issued capital £ls 614, less uncalled capital £Bll3 5s — £7500 15s; less calls in arrears £76 paid-up capital £7424 15s; deposit on shares to be issued £9 ss, forfeited share reserve £494 5s Pd~£so3 10s 9d; reserves, £8500; insurance icserve, £234; pyoyision for had debts, £200; trade creditors and supplies; £32(043 12s 2d; profit and loss appropriation account, £34B' 3s‘ 2d; ' ■contingent' Ua* bility—P.N. National Dairy Association Ltd., £SOO, P.N." Co-op. Dairy Producers (Freezing Co,, Ltd., £2000; total, £49,254 Is Id. THE CHAIRMAN’S REVIEW. In moving' the adoption of tfee report and balance-sheet,' the Chairman laid be had muMi pleasure in appearing' again before the suppliers, whose good attendance the directors appreciated. On behalf ( of ', the Board, he congratulated tlie"company on a most successful year ’a working; tlie ctfjp'ut having shown an increase of nearly 250 tons bn! fhe previous year. The suppliers now numbered' 453. Considering the large' quantity of produce handled, the grading showed a satisfactory result,'bu't they must nevertheless do better, and it would be very gratifying if all cream could go through as “finest.” The company had passed through one of the best seasons that shareholders would remember. About thirty years ago they had a similar season, but there was nothing like the same make of butter then as nowadays. The extra production vvas not altogether to be credited to the good season, though the latter had been largely responsible. There were two other factors which had to be considered. One of these was the amount of fertiliser that was now being -used and the other was the practice of hqjdtesting. These conditions had a great

effect on any season, but, of course, fertiliser without rain would not be much good to the farmers, INCREASED USE OE MANURES.

To show the advance in the use or. artificial manures, the Chairman stated that i‘ was estimated that in 1923 the amount of fertiliser put on the lands of the Dominion was 124,118 tons, the cost of it being £752,000. Five years later the purchases of fertiliser amounted to 285,208 tons for the year, and it was astonishing to find that, although the quantity had doubled,; the cost to the farmers was a little lower than for the amount used in 1028. Grass-land farming was altogether different. now from what it was ten years ago, and farmers realised that it was possible to get results without going to Hie trouble of cultivating, as was done in years gone by. This company had made it its business to assist suppliers in getting manures as cheaply as possible.

BENEFITS OE HERD-TESTING. It was very essential that the tanners should test their herds if they wished to get the best results. Thtoughout New Zealand last season 1,700,000 eows were being milked, while only 250,000 were being tested, but the increase in the number tested last year wps about 25,000. Two herd-testing associations were operating in this district. One was the small association belonging to the Agricultural Department and having 20 members. With 345 cows under test, Hie average production was 334.5 Ills of butter-fat in 283 days. The best herd in this association was that of Mr Shanks, of Levin, consisting of five cows, with an average of 49U.91b5. The cow with the highest test was one that produced (.5491b5. while the lowest produced 455.51b5. The next best herd was that of Mr M. Gay, of Koputaroa, consisting of 30 cows, with an average of 4111l).s, the cow with the highest test giving 5781h5. These results were very creditable indeed.

The Mauawatu Herd-testing Association was operating two groups, No's. 7 and 11, in this district, in which 2d per cent of-the cows were tested by it. Last season the association as a whole tested .17,824 cows, but of this number 649 were tested for 100 days and under and were not included in the analysis from which he was quoting. The remainder, 17,175, averaged 2fi4.391bs of butter-fat over 24-t days, as compared with an average of 24.8,301hs over over the same number of days in the previous year. The average for Group 7 was 295.611bs in 271 days, which was very creditable. The highest-testing herd in the group was Mr E. d. Field’s, of Levin, the ten cows giving an average of 377.301bs in 2SO days. The cow with the highest production was owned by Mr W. d. Hummers; it gave ddllbs in 230 days. The lowest-testing cow produced Oolbs in 100 days. In Group 11, which operated in and around lhakara, the average was 281.371bs in 244 days. The highest herd was Mr Arthur Hudson’s, 20 cows giving an average of 371 lbs 1 n 283 days. The highest-testing cow in this group was one of Air 'l'. G. V incent’s, wnicii gave 5711bs in 301 days. The lowest-testing herd, consisting of 40 cows, averaged 188.851bs in 241 days.

The herd-testing movement was still going ahead, and, io the Chairman’s mi ml, it was well worth while. DISPOSAL OP YOUNG CALVES. Another phase of the dairy industry which was being closely watched was tlie export, of boneless veal. Last year the operations were quite satisfactory, the price paid to suppliers being about 9s a calf. This showed that it was better to sell the young calves than to destroy them as had boon done previously. It was necessary that the farmer should take reasonable care, of the calf and not take it away from the mother without sufficient sustenance for three or four days; otherwise the freezing works would have to condemn a large number of calves. The National Dairy Association was still working on much the same lines as last year in respect of tlie calf trade. The price likely to be advanced in the current season had not yet been announced, but it was about to bo fixed. Any farmers who were sending calves would have to trust the association to play the game fairly, which he was sure it would do. Last year the rejects of calves sent from this district amounted to about four per cent., which was a light rate. In that year all the calves were paid for on the same basis of 9a. This yedr it had been decided fhat the calves should be classified; if some of the farmers were unfortunate enough to have any calves rejected, they'must not look on the dark side of it. It was only fair that the calves should be paid for according to their respective values as deterriiined by size. The veal had been well spoken of in the Old Country last year. • PIG INDUSTRY. Coming to the pig industry, tlie Chairman stated that last year this was slightly better than in the previous year. He thought' that quite as good prices had bccit obtained locally by the company as, they could have got if they, had exported the carcases; perhaps the' prices U.ad jicen even a little lietler. ( There had hot been much opportunity |of' exporting £pfk last year at a payipg price. Five iiuridred pigs w.ere sent aiytiy early in the' season; the ' result, though (satisfactory, "'as vefy little better than what the local market would (have giVen. There was still a' Government .Subsidy on the export of pork and bacon; if it were not for that, it would hot be worth while exporting pigs at pll. A small body of men we.ro watching the position, and, should the occasion'arise,Ht would be dealt with by exporting some of the pigs. DAIRY INSTRUCTION. The Dairy Instructor was still occupied, working on the block system) under which he took every supplier in a district' regardless of what company the supplier belonged to. The instructor was doing good work; and the Chairman thought it would not be long before the block system was in operation over the whole of New Zealand. DISTRICT PAY-OUTS.

A few years ago he (the Chairman) had said he thought that the prospects for butter were not going to be too good. : As it- happened there was only one year 'when the prospects looked black. He. cohsideied that-the position would improve as time went en. The pay-out for last year, Is 7.304(1, was

the host for some time, ami he would not say that ir was not going to be beaten. In the past the Shannon Company had always beaten tills company i>v a lew decimal points, but on this occasion the pay-out was in Levin's favour by .068 d per lb. The Kuku cheese factory, he understood, was going to pay out Is 7 |d. which was a few points behind Levin’s figure. The business of dairy factories must be managed very soundiy when throe companies in tiie district could make payouts having such small differences between them.

Mr Gay asked if the directors had not included in the total pay-out a little balance that was not distributed last. year.

The Chairman replied that-there was always a little carried forward each year. Any tiling left from this year would go to swell next year's pay-out. Such a procedure was unavoidable owing to the existence of a certain amount of unsold-’butter. CONFLICTING OPINIONS OF MERCHANTS. Continuing his address, the Chairman stated that, during tin* year, visits bad been paid to Xew Zealand by beads of various importing bouses in the Old Country. They had given very good reports on the prospects for the next year or two, saying that the outlook had never appeared better. The purchasing power of rlie people in England had materially improved, giving them a hotter chance of buying New Zealand's dairy produce. One merchant had said that the quality of tin* New Zealand product had deteriorated considerably. Notwithstanding this assertion, the grading had been going forward instead of back in the' last few years; and the merchant ’s .statement was very hard to grasp. Another agent from Home, on being asked his opinion, said lie did not think that the dairy produce had gone back in quality. Consequently the producers did not know Just where they were in this matter. From the point ef view of their graders in New Zealand, the quality was very favourable, and it was the company’s duty to keep that qua) ity ami, where possible to improve it. It stood to reason that the freshness of the Dominion article coubi not be the same as that of the Danish, which possessed the nutty or churny ihivourthal New Zealand butter coubi not b ■ expected to have after being stored for some lime. The Chairman made reference to (lie company's experiment witii the keeping qualities of its (miter, under which it placed a quantity in cool store in Wellington for tifteen months, bringing it back to Levin recently. The quality was found to .be quite good—not so much so as in the case of fresh butter, but nevertheless palatable—and lie thought that, it would be relished by people who were not used to fresh butter. If Danish butter had been put to the same test with it, the New Zealand article would easily have come out on top. WORLD-’WIDE FROSEDOTS. Another factor favouring the consumption of' butter and cheese was the increased population of the world in general. The United States was the hugest butter-producing country in the world, though people in rhis country did not hear of the fact; yet the United States was buying butter from other sources, trout Xew Zealand and wherever it could be obtained.. This was depleting the English markcL which was the best market in th •> world. The taking away of the supply increased the price, Germany was. the second highest dairy producer, but. did not export a pound of butter, and latterly she had been buying it. All these facts went to show that very soon the consumption was going to be ahead of the production'. There wenhundreds of thousands of acres in New Zealand that could be prolitably turned to dairying and would help this country very considerably. In the Eastern countries there should be found a good market for butter. ECONOMIES EFFECTED.

in the course of a review of the finances, the Chairman stated that, the company had effected a saving per pound on the cost of manufacture, the figure for the past year being ,704'd, as compared with .748 d in the previous year. The cost of making and - selling the butter, from the factory to th‘9 merchant at Horae, in the pait six years was as follows: — 1024 3.985)d. 102,1 3.701 d. 1026 3.519(1. 1927 Dairy Con 1 ro!. 1928 3*. load. 1929 3.138 d. In dealing with figures relative to* the system of cream collecting, / theChairmau showed that a slight redactions alb round had been effectedin the cost. Last spring the company bought a new lorry, as a reserve vehicle.' The aggregate distance travelled by the lorries each day was '21.1 miles, and 34.61bs of butter-fat was. picked up for each mile. AVERAGE PRODUCTION PER COW Tlie Government had asked the company for a return showing the number of cows milked for the factory 'the object in view being to ascertain production by cows throughout 'Nevy Zealand. The company had accordingly asked the suppliers to scud hi Vdturns, and 241 responded. When the returns wore received, a computation, was made on the basis of 9364-' estimated to be supplying the L fadtiry at the time, and the result showed aiv* average production per cow' for' : the • season of 267 lbs of butter-fat —qgito a good return. The average production under the Manawatii Hcrd-te’stiig sociation was 264 i The largest sending cream td the factory consisted of'2so'cow's, and the smallest supply deceived was from one cow. 'ln 1984 the Company asked for a return, for its owiy satisfaction, and this 7571 cows, giving an' average of 236ib*T of butter-fat. SOME TURNOVER FIGURES.

During tli«' past year, ’the held twelve monthly and six special meetings. ' The total amount paid supplicrs, including the bonus, £228,700. This showed that, for a comparatively small district, the factory was a wonderful asset. In tnc lirsb yonr of the company's operations, there, were 17 suppliers and an output of 52' tons; now there were 453 suppliers and an output, of 1350 tons. A t>;r;l of 3(5,104 boxes of butter last year ivuaput through the grading store, and

1782 remained unsold. The average .grade' for the year was 94.86; there were some slightly better gradings at -/that store, but the figure mentioned -showed a very good result from 453 suppliers. . PAY-OUTS OP SEVEN YEARS.

Mr Broadbelt went on to give figures ■covering the last seven years. During five years of that period the Company made over 900 tons a year; in •-one year it made 1104 tons; last year the output was 1350 tons. The payouts for seven years were as follows: s d. 1922- 1 7.23 1923- .1 7.77 1924- 1 6 -78 1925- 1 6 - 93 1926- 1 5.01 • 1927-28 1 0.359 1928-29 1 7.304 The Chairman having formally movod the adoption of the report and bal-.ance-sheet, his speech concluded amidst applause. CALF COLLECTION. Mr S. M. Verity brought up a question in relation to “ bobby” calves, lie said that last year he supplied the calves to a proprietary concern at Pcilding. This year he decided to supply them to the National Dairy Association. A man arrived with a bale ■of wire, a bundle of labels, and a bundle of tin shields to put the labels in so as the calves would not suck them off. He asked if it would not be as well for the company to employ a man to buy the calves. The first time he sent calves away this year, he forget to put his name on the labels. (Laughter.) Last year there was a more direct way of selling the calves. The Chairman, in reply, saifi.it was just a question of whether they were ■going to work co-operatively or individually, and his advice was to work co-operatively. The Feilding Bacon ■Company was responsible for the start of the bobby calf industry in this district, but he thought it was right that that the National Dairy Association should take it up. Once the farmer started labelling the calves, it was surprising how easily he could go on doing it. (Laughter.) His advice to ■.the suppliers was to stick together and work for eo-operation for all it was worth. INSURANCE SUGGESTION. The question was asked by Mr Verity whether it would be possible for the company to carry its own insurance. The Chairman said it would not be , -advisable for the company to carry the whole of its insurance, because it would bo too big a proposition. A .start in this direction was made four years ago. The company used to insure a small quantity of butter going by rail to Wellington, but it had, never had any accidents with it, and he had suggested to the secretary (Mr Parsons) that amounts equivalent to the premiums be put into an insurance account. This was done, a. sum being put iiside each year. At present there was £234 standing to the credit of that account. As this venture had paid the (company, it should be possible for

something of the kind to be worked on a larger scale. At the recent conference of the National Dairy Association, he moved with the object of forming a mutual accident insurance company. This was favourably received, and the association would go into the matter. It would mean the formation of a fund by the dairy companies, and, if the scheme worked satisfactorily, it would be only a little time before other branches of insurance were picked up. 'The motion for the adoption of the report and balance-sheet was seconded by Mr Verity, and was carried. RE-ELECTED DIRECTORS. The retiring directors, Messrs A. S. Death and W!. B. Kilsby, were reelected by ballot, the other candidates being Messrs J. A, Mitchell, W. J. Summers and J. H. Taylor. The Chairman congratulated the reelected directors and thanked the other three gentlemen for having allowed themselves to be nominated in order to provide a contest. The thanks of the meeting were accorded by acclamation to the unsuccessful candidates. Mr Death, in returning thanks for his re-election, said it was very gratifying, to him to know that he had the confidence of the shareholders and ho trusted that it would not be misplaced. Mr Kilsby also thanked the suppliers. He stated that he was entering his third term as a director. During his term of office he had endeavoured to do all he possibly could do for the benefit of the company as a whole. Mr Taylor complimented the directors who had been returned, and thanked those who had voted lor him. This was his third attempt to secure a seat on the Board, and ho was not ashamed, but would try again. Mr Mitchell, In thanking bis supporters, said he did not think that many suppliers were dissatisfied with the conduct of the company. Interest should be taken in the election, which was the only way the company had of gilding out whether the suppliers were satisfied or not. Mr Summers also expressed his thanks for the support accorded him. Messrs F. H. Hudson, 11. L. Jenkins and F. J. Ramsay had acted as scrutineers, and were accorded the thanks of the meeting, on the motion of Mr A. J. Gimblctt. At this stage a pleasant light luncheon was served in the hall by Mr A. L. Williams's staff, and the opportunity was taken for social converse. When the meeting resumed, the directors’ remuneration, collectively £235, the same as in the previous year, was sanctioned. The auditors, Mr C. E. Dompsy, FP.A., N.Z., and Mr J. L. Arcus, P.P.A., N.Z., wore re-elected. The Chairman stated that the directors had received, two days ago, a letter from the auditors, in which they expressed great pleasure at the manner in which the books had been kept, everything being in order and _ as straightforward as it could possibiy bo, and the secretary (Mr J. M. Par-

sons) having been of great assistance to them. DEPRECIATION FUND. The auditors also stated (the chairman continued) that if would be advisable to consider allowing more depreciation on the plant and machineij than at present. The life of the machinery to-day, they pointed out, was much shorter than it used to be. The company often discarded machinery in order to replace it with that of more modern type, and it was not allowing as much for depreciation as it should. Sooner or later the Company would have to build a new factory. The “make” of butter was increasing very considerably, and the company would be faced, in years to come, with reasonably heavy expenditure, and he thought that the auditors’ advice was sound. MEN’S ACCOMMODATION.,, Mr Parraut urged that the rent charged to employees of the company who are accommodated in a cottage at the factory be abolished. Mr Taylor moved and Mr Gay seconded a recommendation to the directors in those terms. Mr Verity moved an amendment that no such recommendation be made. The amendment was carried. “DRY” SHAREHOLDER. A question affecting the holding of capital by shareholders who had ceased to be suppliers was brought up, and Mr Taylor moved that the directors be recommended to pay for shares which they may buy back at the paid-up value. Mr Verity moved, as an amendment, that it be a recommendation to the directors to re-purchase any shares which they might wish to buy back as cheaply as possible. The Chairman stated that the Company had legal power to compulsorily acquire shares. The amendment was not seconded. The motion was carried, on a show of hands, bv a majority of five votes. THANKS TO THE STAFF. The Chairman moved a vote of thanks to the staff for the able manner in which they had conducted the company’s business in the past year. He mentioned that the manager, Mr J. Smcllie, was taking a. holiday at the directors’ earnest request; otherwise he would have been present. The motion was carried by acclamation, and the meeting terminated.