AWATUNA DAIRY COMPANY

Hawera & Normanby Star, Volume XLI, Issue XLI, 12 September 1921, Page 8

AWATUNA DAIRY COMPANY

ANN UAL MEWING

The twenty-seventh annual mineral meeting of shareholders of the Awatuna Do-operative Dairy Factor y Company, Ltd., was hold in.the public nail at A.watuna on Saturday. .Mr. h. A^ Collins (chairman of directors) presided over an attendance of about 65 shareholders. DIRECTORS' REPORT. The directors' report read as follows: "Your directors have much pleusuro ■ in presenting herewith the twentyseventh annual report and balanco sheet, and have to congratulate the shareholders on a record year s operations in spite of some very adverse circumstances having to be continually faced more especially on the question of shipping and market fluctuations, in consequence of which your directors decided to change on to butter at Awatuna factory, but unfortunately the extra machinery did not arrive an. time for the change to be Riven effect to. until January 1. Also the question of casein was considered early in November, but owing to the Casein Company being unable to accommodate us we were not in a position to take advantage ot casein manufacture. After writing oft £881 2s 9d for depreciation, and taking the balance of cheese, 3316 crates now aEoat into stock at 8d per pound, the result of the year's working shows a surplus of £8381 7a 6d. from which your directors recommend a payment or t> per cent, interest on paid-up capxtal, which will absorb £370, thu* leaving a balance available for distribution ot £8002 7s 6d, enabling a fuTUier payment of 3|d on butter fat to t»e made, which will bring the payment up to 24 Sd over the season, with a possibility of a still further payment when the cheese now afloat is realised. The nayments made so far for the season have bqen at Is 9d torn July 1, 1920, to March 31, 1921, and 2s April 1 to May 31,1921 and Is 9d for June, 1921. A farther payment of 3d per pound will be paid on the day of the annual meeting. The bulk store has proved quite a successful innovation, as will be seen by the balance-sheet, besides being a groat convenience to the suppliers. Your directors recommend that, of the profit shown £50 be applied towards the seerelary's salary. £300 be devoted to a rebate to shareholders on stores purchased, and the balance of £250 3s lOd be transferred to "store reserve." As shown by the statistics, it will be seen that the supply of milk has made a steady increase, thus producing a considerable increase in cheese and butter, being an equivalent of an increase of 63 tons over last season. Mr. J. Flavin has been^eappointed general manager| and Mr. M. W. Beattie branch manager for the coming season." The following statistics were attached to the report, the figures for previous year being in parentheses -.—Milk, 14,882,4231b (14.302,1701b): butterfat, 567,1201b (536,6171b); cheese made, 1,131,0621b (1,425,2641b); cream butter made, 174,1571b (6,6631b); whey butter made, 27,3441b (30,6651b); pounds chees o per pound butter fat. cured weights, 2.61' (2:61); cheese period, average test for season, 3.81 (3.74); overrun, 19.8 per cent. (23 per cent.). CHAIRMAN'S ADDRESS.In formally moving the adoption of the annual report and balance-sheet the chairman said that he had much pleasure in doing so because the result of the past year's working had been a record for them. This was the third occasion on which he bad acted as chairman at their annual meetings, and it was also the completion ot his second year in that officft. The Imperial Government's commandeer for .cheese had terminated on June 30, 1920, and the directors had decided to dispose of the output on open consignment* During Ids absence in Australia the directors had conducted the com • pany rs affairs most satisfactorily and had -.secuoedJEqp-' prices. They had been fully ali^P^-tßeir^Unties,'and' their company had been one of the first to take advantage of the Imperial 'Government's:'offer of 2s 6d per lb for butter. The prospects : 'for casein had Been gone into' very fully, but they had not be&p able to get any* satisfac♦•ldrirfronvVSiik Casein Company. He had paid a visit to Wariganui, and had found the company trying to instal machinery. Subsequently the bottom tad fatten out of the casein market, and as the company were not in a position to accommodate them they had decided not to go on with the proposition. In compliance with a resolution passed at their, last annual meeting they had endeavoured to form a testing association for last season, but^ they were informed that they were too late in the field. This year,the secretary had got info touch with the Department, but the shortage of men had been a difficulty. However, they had said that they would do their best to start them. They would irotice that last year cartage had cost them £23/ more than the previous year. This was 4ue to the old lorry breaking down ; and having to have certain parts recast. This had caused a long delay. The directors had had an offer to cart butter and cheese only at 15s 6d from Taungatara and. 10s 6d a ton ,from Awatuna, bul after consideration they had turned the offer down. Had they accepted their bill for inward and outward cartage would have amounted to about £1200. A delegation had been received from tne N.Z. Meatpacking ajid-Bacon"^)., but they had not taken ■»P-JBW extra shares. The directors had had an opportunity of arranging for electric power from Kaponga, but it had been decided that they would be better served from Opunake. Mr Toogood; had informed him that it was quite possible that the power would be available.in their district within 18 months. In accordance with another resolution passed at the last annual meeting they had written off 10 per rajnt-on the shares held in the Egsnont JJox Vo. During the past season they nad shown a. rise m their output equivalent to 63 tons. This spoke well tor the , suppliers in seeing that a3 much milk as possible came to the lac tory. Although they wejcb new at the business their store had shown a profit which was very satisfactory. This reflected great credit on>Mr Harding' s management. Assuming that the market remained as it was at present they would make a greater pay-out than had mt 611 £} owed for i*l *>»c balance-sheet. The 3316 crates now afloat had been yalued at 8d per lb., but if they real-, ised 9d it would,enable them to make a.n additional payment of Id. If they1 netted lOd it would mean an addf- '' tional 2d. Whatever these crates nested over 8d would mean an additional payment. He had much pleasure' m moving the adoption of the annual report and balance-sheet. s , Mr Tindle seconded, and the report and balance-sheet were subsequently adopted. Mr-Farquhar thought that it was very misleading to give the shareholders any hope of securing a greater vri-te than 8d for the cheese that was at present unsold. He pointed out that to-day the market was .very much worse than it was when the balancesheet was printed. He asked what price the cheese would have to be sold at to enable them to net Bd. The secretary replied that cheese would have to drop to about 90s for them to. get below M.

Considerable discussion atom over Mr Farquhar's criticism of the principle employed in writing off. doproeiaTho chairman pointed out that the Government's allowance- for the amount of depreciation to be written off did not encourage companies to write off heavily. In reply to questions, the chairman said they had a twelve months' buu- ! ply of wood on hand, which placed them in a safe position in the event of a coal strike. The directors' action in not selling their output last season was discussod at length. The chairman said that they had not had an offer to sell. Mr Farquhar contended that the directors were not looking for an offer, and if they had called a mooting and made arrangements thingK might havo been different. Thu chairman said that he understood that buyers were only operating at the small factories. Mr Buckeridge bore him out in this statement, and also said that at the time their output was disposed of there were no offers to buy. Mr C. H. Hurst said that they knew that some companies who had sold their output last season had been ahlo to pay out about 3s per pound for butter-fat, /and he was sorry that their company did not sell. However, it was unfortunate, but it was no use crying over spilt-* milk. The directors had done very well. The shareholders did not let tho discussion on this subject rest here, but carried it on for some time longer. j Some supported Mr Farquhar's - contention that tho directors were not looking for an offer, and another supported an uninterrupted policy of open consignment. ! Mr H. A. Lennon, the company's ' auditor, went carefully through the balance-sheet, and explained many matters of interest to the shareholders. At the conclusion of his address Mr Lennon was thanked by the chairman for coming out and addressing thetn. I ELECTION OF OFFICERS. I The following gentlemen were nominated to tho directorate from the Taungatara and Axvatuna districts respectively, and a poll resulted as follows: Awatuna—S. R. Farquhar 849, M. Bourke 255, T. Haworth 40, and L. W. Johns 39. Mr S. R. Farquhar was elected. Taungatara—H. McCorrispn 380. C. H. Hurst 289. Mr H. MeCarrison was re-elected. Mr H. A. Leimon was re-elected auditor at an increased remuneration of 30 guineas. | YELLS. It was decided that veils-be received nt the factory and be paid for according to the scale of payments made by the N.Z. Rennet Co. ! . TESTING. The chairman mentioned that the Pihama and Opunake Dairy Companies were wanting them to co-operate' with them in maintaining an independent tester, who would also act as an agricultural instructor.. After som© discussion the matter was left in the hands of the directors. THANKS. Votes of thanks were accorded the . ladie3 for attending to the arrangements, for lunch and afternoon tea, to the manager and staff, and to the, chairman and directors. GENERAL. ' j The chairman's honorarium and the directors' fees for the past; year were fixe 3at £75 and los a day respectively,land for the coming season at £105 and £1 Is a day resoectively. I .Mr Farquhar moved, and Mr Jones seconded, that the bulk store be discontinued. The motion was lost. "-' Ml ' _ j *—"—•—^—— —• ™—-—————— I