THE BACON INDUSTRY.

Hawera & Normanby Star, Volume LXII, Issue LXII, 22 January 1912, Page 5

THE BACON INDUSTRY.

JBLTHAM ANBmm&ATOEI COOPERATIVE CO.

, (Prom OurEltham Correspondent:) ; The first annual general meeting of the Latham, and "Mangatoki . Co-operative Dairy Company's Bacon Factory was held m the Town Hall, Eitham, on Saturday afternoon. There were about 65 suppliers present, and Mr Jacob Marx (chairman of the committee) presided and was supported by Mr Forsyth (chairman of the Eltham Dairy Co.). .The annual report was as follows: It aftords your committee much pleasure to be able to report such a successful season s work, notwithstanding the difficulties incidental to and inseparable from' the initial stages of a new undertaking On Februarys, 1911, the first pigs were received from guaranteeing shareholders, and up to November 30, 1911, between four and five thousand pigs have been received and dealt with, and full market, prices secured to our farmers tor all pigs supplied. After allowing 10 per cent, depreciation on the permanent additions to the factory and setting aside Is per 1001b. on all pork received, amounting to £265 10s Bd, to a^reserve account; there remains £245 l.s 2d, which your committee purpose being partly used as additional payments on pigs received during the months of June, July, August, September, and November. The satisfactory results secured by your committee during their first-year's operations show conclusively that shareholders' pigs can be dealt with and marketed by co-opera-tive dairy companies on similar lines, and quite as successfully as the manufacture and marketing of butter and cheese.

Ihe profit and loss account showed i m gOods £4327 had been received. The principal payments were: Wages, £630; salaries, £142; rent, .3^' freezin S charges and storage, £900,; railage, £311; discounts, £388; supplementary payments, £226^ materials, £270 ; freight and cartage, £155; insurance, £86; commission, £90. After allowing £55. for depreciation, and carrying £265 to reserve account, there was a balance to profit of £245. ? The statement of assets and liabilities showed that the assets were as follows • Buildings, plant, etc., £1,442; improvements, £550 (less 10 per cent, for depreciation); pig-yards, £41; sundry debtors £1540; stocks (of which £1600 is represented by hams, bacon etc.), £1762. The liabilities were: Bank, £2463; owing suppliers, £861; sundry creditors, £606; Mangatoki Dairy Co., £714; reserve account, £265; rent and other expenses, £184.

In moving the adoption of the report and balance-sheet, Mr Marx said that it might seem strange to some of them that the balance-sheet was dated November 30, but for a business of the kind that was the best time of the year-to get at a correct value of their stock. When this concern was first mooted by the Mangatoki company, the Eltham company was not too ready to 6ome in. The Mangatoki company did a certain amount of work, and eventually the twp companies came together, and the result had been very satisfactory, as showing the value of co-operation in the bacon business as well as other businesses. The satisfactory business done augured well for the future. As to the prices paicL, the committee had taken a safe course in making progress payments of a certain amount, and the bonus, or further payment, would bring the price to more than had been paid in, the same period by the proprietary concerns. For the three big months in the year they had paid id more than the proprietary companies doing business here, and fully as much as any proprietary company in the Dominion. As to finance, the two doiry companies ha,d guaranteed the account, and the suppliers so far had not been called on to pay one penny. He formally moved the adoption of the report and balance-sheet.

Mr R. White seconded

Mr H. D. Forsyth, in.speaking to "Ehe motion, said that the chairman had placed the. position fairly and squarely before the meeting. The position, considering that the business was ,new to them and the handicaps they were under, was very satisfactory. They were manufacturing a first-class, article, und had a good market. To make the Bacon Company still further successful two things were essential. These were loyal support from the suppliers and careful management. He was sure of the management, and he hoped the shareholders of the two companies would do their part. The pi-ices they had paid compared more than favorably with those paid by their competitors. For three months (June, October, and November) they had paid the same as their competitors, and for February, March, April, July,, and September they had paid from |d to per Ib. more. Mr Dawson asked what had actually been paid, and what was the difference between them and the-private companies, ffc Mr Marx replied that he could li&dly tell Mm what was the difference between them and the- private companies as he had not supplied any pigs to those companies, but if some of those who had supplied to private companies would tell him* what price they got he would be in a position to make comparison. Mr Forsyth' said the figures were as follow: —

He had not got the figures for May. Mr Ballantyne asked where the £245 17s 2d credit came from. The chairman replied that on the interim balance-sheet they had. paid, up in full till May, and since then this had accuomulated. Mr Ballantyne: Could they not pay so much for the whole year ? The Chairman: It had to be remembered that they could not pay in the same way as dairy companies. They had to take notice of the markets, which fluctuated so, and pay accordingly. Mr Ho'dgson said that some suppliers who had guaranteed had not been loyal, and those who had stuck to it had been penalised because of the disloyalty of the others. Mr Ballantyne said that when the undertaking was discussed at the meeting of Mangatoki shareholders, . authority was given to take up the business and lease the premises. Now he found' that nevr buildings had been erected at a cost of £550. He thought that the action of the committee in doing that had been detrimental to t the business. Before this was done it should have been properly explained to the shareholders of the Mangatoki company. Mr Marx: There were very good reasons for the action of the committee. They took over the buildings with a two years' lease and right of purchase. There was no freezing chamber there, and they would see by the balance-sheet what expenses (£9OO had been incurred in sending their produce to the Waitara Freezing Works. "When that was considered, they would be of opinion that the committee were justified in their action in erecting the freezing works. Mr Marx here read the resolution of the Mangatoki Dairy Company authorising the starting of the bacon. business. He went en to say that the committee

St™ handling of £150,000 jn th* - ihS?i}Ti^ m v;^ nd if jt wa* thought: that in this 'business they could nofcba pay better when they could make use tf W by-products. It was no use saying ~ ?i c Pr°Pf ietary concerns could pay more than this company, as they could nob pay more than the market value In co-operation they could always rely in getting the market value. $S tor? W"J f? r thG f utu* of" «* ££ tpiy and it deserved the loyal and hearty support of all supiiers Th 2 erect freezingchambers. They'could rely wlrU +— aM h% head of this «>*»» liers m interests of supThe chairman remarked that two years ago they wnu getting 2jd to 3d for - their pigs. iJiere were meetings held and grumblings indulged in at the price, io-day uhmgs were different with their own concern going. If it had not been going they might have had to accept less than 2id or 3d. Mr Laurent said that there was a rumor current that a telegram had been, received trom a competing company stat}"S that they had bought hams from the Eltham Company at 7d. Was this "correct? ....... , : Mr Marx: That was not correct. They had sold legs of pork and green ham to the company at 7d, and it was a very - good deal for our company. They had •• not sold hams to them. Mr Hodgson asked if they had .not , sold a line to s±d— an advance on what they had paid to suppliers. The Chairman: Yes, at a higher rate than that. It had to be remembered that the company mentioned were pay- ' ing s£d here, and 5d in Waikato. Mr Forsyth- said they had sold a grea^deal more at a price that the suppliers could not have got themselves, but it had to be kept in mind that they . 1 must keep their own factory going and they required a certain number of pigs to do that. If they had had 5000 extra I they could have sold them to advantage. Mr Marx said that all the time they had to oonsder the markets and hold stocks accordingly. Co-operation was required to do this; individuals could not do it. Mr Ballantyne asked: "Did tlie two i companies guarantee the amount spent oh- the buildings.or did. the bank?" The Chairman: "The companies guarI antee whatever is required by the bank." Mr Hall asked which was tne fairer way to gay—^on the live weight or dead ' weight of pigs? . The Chairman was of opinion that to pay on the dead weight-was the fairest. Mr Hodgson asked was it. the inten- • tion of the directors to pay on the dead weight? . i ; • Mr Marx said it had been discussed by the committee and the general feeling was in favor of it. Replying further to Mr Ballantyne, the Chairman explained the difficulties the companies were working under at the present time. The two dairy companies were running the bacon business and still they worked separately in the finance. They had not got a good start and he thought the time would come when a proposal might be considered to form one company for the bacon business. The two dairy companies might take up say £5000 worth of shares each, and any private individual could have the option of taking shares. This would put the matter on a better and simpler financial basis. Whateyer__was done hewould strongly urge them tb combine. ~~ If they stuck together they had a good thing on . Mr Dawson asked what was to be done with those who would not join ? The Chairman replied that he hoped there would be none of those. Mr Dawson: rAre you always going to deduct Is, on^ lOQlbs of pork?" The Chairman: "That is ah asset and is put to a reserve fund." Mr Hodgson complimenfcsS the committee on the satisfactory position they had shown. Considering that £950 had been paid away in freezing charges and freights and they had paid l-8d more than proprietary companies, it could not be considered anything else than satisfactory: • . Mr Forsyth pointed out that for the first three months they had taken 1601bs of pigs which was lOlbs more than proprietary companies were taking. That meant 4s 7d more per pig. Mr Pennington asked in cases where pigs were condemned whether it would be a fair thing for suppliers to pay the loss. The Chairman replied that they had very few condemned pigs—about 2 per cent., and the Government allowed them half the cost, so that their loss was really 1 per cent. Taking it on the whole he did not think that it was worth while troubling about. Mr Ballantyne asked whether the condemned pigs were whey or milk fed. The Chairman said it was difficult to locate where a pig contracted disease. They were sold from one settler to theother, and however careful one might be they could not altogether help having a diseased pig. The balance-sheet was adopted. Mr Hodgson moved that 'a hearty vote of thanks be accorded to the committee of management. Carried unani T mously. Mr Marx, in acknowledging the vote, spoke appreciatively of the unanimity which had existed in the committee.

Proprietary Mtham and Companies. Mangatoki Co. February 3£ .. 3| March 3* .. 3f April 3J .. 3| June 4 .. 3| July 4 .. . U August 4 .. 4J September .... 4 .. 4£ October 4 .. 4 November .-... 5 .. 5