MANAIA DAIRY FACTORY.

Hawera & Normanby Star, Volume IX, Issue 1775, 8 November 1887, Page 2

MANAIA DAIRY FACTORY.

The general meeting of shareholders of the above was held on Monday ; Mr. Newing, chairman of directors, in the chair.

The Chairman read the report and balance- sbeet, showing a loss of £446 on the season's transactions, which he attributed to the bad season and the use of inferior separators when the factory was first started, and also to the high charges for kegs and packing. He moved the adoption of the report and balance sheet. Mr. Gleun seconded. Mr. W. Hair asked whether it was not true that after butter had been sold to a firm at a fixed price a much smaller sum than that at which it had been sold had not been received from the buyer for it ? The Chairman said in one case that had been done in respect to sonic butter sent to Auckland, which had been delayed in transit, and had suffered from being exposed during the journey. Mr. Hair thought it was rather a loose way of dealing to sell at one price and then accept much less from the buyer. He bad been told that the cheese made in the summer had all been sold, but months afterwards on visiting the cheese room he saw lots of it still kicking about. How was that? The Chairman said that arose from the terras of sale, the buyer was to take delivery of cheese ns he required it, aud he took it much slower thnn he was expected to take it.

Keplyingto further questions the Chairman said it was true that they had when giving P.N's for milk added interest at 10 per cent, per annum to the accounts at first, but had now discontinued doing so.

.Mr. Newing denied that there had been a great loss on butter recently bought by the manager on behalf of the company. Tbe manager alter careful analysis of the milk in this district found that it was rich in casein, but poor in butter fats, much poorer in fact than in the other Island. The directors had determined to pay for milk according to its quality in future, and were only waiting for graduated milk test glasses in order to introduce the system. Mr. P. McCarthy had made enquiries as to the quantities of milk dealt with and the amount of butter and cheese made, and was sure that there had been great losses made in some directions. He was informed that between the 26th November aud 11th August, the period of working covered by the balance sheet, 93,845 gallons of milk had been received at the* factory, equal to 1,032,3951bs of milk, deducting for the cheese which had been made, 84,4951bs of milk ; that left 957,9001b8 of milk fnr butter. He was assured by experts that 241bs of milk was a high average to allow for lib of butter. Adopting that percentage, he found the company ought to have made 39,9121bs of butter, which, at the prices realised, should have fetched £1151 19a 4d, instead of only £700 and odd pounds. This discrepancy thus accounted ior the whole loss, or nearly so.

The Chairman said at first the manager found that, owing to detective machinery, it was taking 351bs of milk to make lib of butter. That went on for 10 weeks, until the new separators were fixed. Then tbe percentage fell to 281bs of milk to lib of butter, and continued gradually to fall. Iv the winter months it took only some 221bs of milk to yield lib of butter. The milk in the district was low in butter fats, especially on the open land, and in the spring. The cream was all separated The milk was a good cheese-making milk, and he advocated cheese-making.

Replyiug to further questions, tho chairman said the directors, when they found there was likely to be a loss, bad reduced tbe price of milk to 2£d,and the price now being given was only 2d pe-r gallon, the milk suppliers to receive au extra $d at the end of tbe season if the finances warranted it. They had not taken out an average of the milk supplied each month and the resultant product of butter, but it was done regularly now. It now took 281 bs of milk to make lib of butter.

This wa9 held to be a great deal too high by many present. Mr. Yorke remarked that at the Victorian National Show some of tbe show cows' milk required 301b8 of milk to make lib of butter.

The Chairman said one cause of loss was the price of kegs, which now bad to be given in, although the company had expected to be paid for them. If tbe directors determined to make cheese, they would have to make a cheese room.

Replying to Mr. Milroy,

The Chairman said that the company were receiving no benefit from tbe £273 of calls unpaid, but had sued some, and would sue others for arrears of calls in due course. The overdraft on which interest was being paid was £637. There was cash in hand at thai date amounting to £73. But the secretary was not- sure as to tbe exact amount which he ought to have in hand.

The report and balance-sheet were adopted by 15 to 5 on division. On the motion of the chairman it was resolved to amend the regulations so as to permit a milk-supplier to sit as a director, by amending regulation No. 57. Mr. Newing then stated that he and Messrs. D. Hughes, J. D. Christie, and G. Glenn retired by rotation, but were eligible for re-election. Mr. Christie moved that none of the four retiring be re-elected.

Mr. Hurley pointed out that no such general meeting as required by law had been held, and he contended that the directors must continue to bold office until February 1888.

This contention was allowed after discussion. It appeared to be the general desire to re-elect all four genthnen as it was thought the experience they had gained would enable them to avoid errors in future.

Mr. Cocker was proposed as a director vice Mr. Leitch deceased, but he declined the honor and no one else volunteered, aud the matter was left in the directors' hands to appoiut someone in Mr. D. Leitch's place. An informal discussion followed, during which it was stated that butter, m one case 2^lbs, had been sent to milk suppliers in the butter milk. The Chairman said during the hot weather it had been impossible to separate all the butter from the buttermilk. Now they had better appliances and cold spring water, and that source of loss would not recur. It would not do to keep the cream any longer to r ; pen. Mr. Christie gave notice to propose that the directors have power to lease or sell the factory if an opportunity offer. He believed there was money in the factory and that it could in private hands be worked to a profit. But a company was an expensive way of working. He believed when export in cool chambers became general that next year not a lb of butter would be sold ior Icbs than Bd, and if sent home would realise lOd per lb. If the

directors sold the factory for half, its cost shareholders would get a little instead of nothiug for their shares. Mr. Hair opposed the motion. A piivate owner instead of giving the uttermost farthing for milk, as had been done at Otakeho, Opunake and Manaia, would buy it as cheaply as possible, and he would not be prepared to sell or let tbe factory until atter further trial. The Company should be made to pay. Messrs. Mitchell, Yorke and others agreed that ft would be well to see bow the factory gob on untal February, when the directors would have to retire.

The Chairman held that the directors had recognised the duty of making the company pay. They had reduced the price of milk to 2d, with an extra £d at the close of the season if it could be given. This was lower than any other factory iv the district.

Mr. Yorke contended that, unless the factory made an effort, before paying the extra £d to milk suppliers, to pay a small dividend not exceeding 5 per cent., when they wanted more capital to build a cheese-room, they would find it difficult to get. Mr. Hughes thought milk suppliers who had been promised 3d per gallon and bad bought cows had been scandalously treated. 2d per gallon for milk was an absurd price.

Mr. Yorke contended that those who were selling butter at market price — M to 5d per lb. — were getting less than 2d per gallon for milk, and had all tbe labor of butter making into tbe bargain.

The Chairman, in reply to a question, said the factory was now receiving about 800 or 900 gallons per day. It could not deal with more than 1000 gals. More milk was likely to come forward shortly, and another man wonld have to be engaged. The payment of a low rate of interest all round would make very little difference in tbe amount paid to milk suppliers.

It was contended further that the amount sent in showed that the factory, when giving 2d per gallon, and returning the separated milk, was able to compete with the ordinary outside buyers of private butter. But this was attributed to the fact that farmers had bought cows, and had to milk them, or suffer heavy loss, and had not provided dairies or pans for private dairying. Mr. Gapper contended that it wonld be a pity to close the factory now they bad lost 20s in the £ on their shares and could not lose any more. The company should, if possible, carry on as at present until February. After further discussion Mr. Christie's motion was put and lost, though several shareholders wer ( e willing to lease, bat not to sell the factory.

The meeting then closed with the usual vote of thanks to the chair.