AWATUNA DAIRY CO.

Hawera & Normanby Star, Volume XLII, Issue XLII, 13 August 1923, Page 8

AWATUNA DAIRY CO.

ANNUAL MEETING. The twenty-ninth annual general meeting of tue Awatuna <Jo-operative jjuiry factory (Jo., Ltd., was held on featurady., August Jl, in the Awatana public iiall, viif, following <li-rec;<rs being oresent: Messrs K. A. Collins (cnairman), H. McGarrison. M. Bourke, \Y P. Hughes, F. Tindie, R. Ferguson and W. Yv. Lonsdale. IVir Hughes and Mr Lonsdale were the retiring directors, both, of whom offered themselves for re-election. I The annual report was as follows:-— j The directors' have pleasure in presenting herewith, the twenty-ninth annual balance-sheet for the year ended June 30, 1923, and in doing so take the opportunity ctf congratulating the shareholders on the continued success of the company. The final returns of the 1921-22 season enabled your .directors to exceed the balance-sheet estimate by £d per Ib. The balance from the past season's working, after deducting depreciation £609 6s 2d, and 5 per cent interest on paid-up share capital £417 3s 6d, is £5b49 15s 7d, equivalent to Is 7-jjd. per lb over the season. There are only 69 crates of cheese unsold, and an advance has been d>rawn against this at the rate of 7d per lb f.o.b. The autumn butter has all been disposed of. Advances throughout the season have been made to suppliers as follows: —• July to October, 1922, Is 7M; November, 1922, to March, 1923, Is 6d; April to June, 1923, Is. The bulk store has revealed a very satisfactory balance, besides being a great convenience to suppliers. The major portion of the turnover has been handled on consignment. The butter-fat statistics again show a marked increase, the output on a cheese basis being 65 tons in excess of the previous season. Mr Beattie resigned his position as branch manager in order to take up the management of the Gape Egmont Dairy Co.'s Factory, and Mr R. Clements was appointed in his stead. The retiring directors are Messrs W. P. Hughes and W. W. ! Lonsdale, who, being eligible, offer themselves for re-election. Mr H. ' A. Lennon again offers his services as auditor. Statistics attached to the report were (figures for 1921-22 being in parentheses; : Total pounds milk received, 1922-1923, 18,553,012 (17,045,905)^; total pounds butter-fat, 723,587 (659,347); average test, 3.901 per cent (3.867 per cent). Used for Cheeso-making: Pounds of milk, 12,376,259 (15,029.083);.. pounds of butter-fat, 479,913 (568,33"8); average test, 3.887 per cent. (3.781); pounds commercial cheese made,-1,23'/,-V.33 (552 ons llcwt 211bs), (1,489,561), 604 tons 19cwt 2qrs 161bs : nounds of milk to lib cheese, 9.99 (10.08); pounds of cheese from lib butter-fat, 2579 (2.62); pounds of whey butter made, 19,616 (30.825). < Used for Butter-making: Pounds of mid£, 6/176,753 (2,016,822;; pounds of butter-fat, 243,673 (91,009); average test 3.945 per cent (4.512 per cent.); pounds of butter made from lib butterfat, 1.1743 (1,1907); unsalted butter made, nil (nil); milk to lb butter 21.58 (18.53). Mr. Collins, in moving the adoption of the report and balance-sheet, congratulated the company on the successful year's business. He stated that • the past season's turnover was their largest, being in excess of the previous season's (on a cheese basis) of 65 tons. Part of this excess. was due to a period of extra suppliers .from" the Pihama Company, as the result" of the fire at their factory; but after allowing for that, the estimate of the excess was 40 tons, calculated on a cheese basis: The milk received during the s season was 18,553,0121b, or 1,500,0001b over the previous season. The total amount of butter-fat was 723,5871b, against 659,----3471b for the previous season, while the test was 3.901. against 3.887 in the previous season, also an increase. Advances throughout the season had been made to suppliers as follows: July to October, 1922, Is 7jd; November, 1922, to March, 1923, Is 6d; April to June, . 1923, Is per lb fat, and the pay-out for the whole season was very creditable. The company's output was dealt with on open and they had to contend with the fluctuation of the market. What he thought amounted to exploitation was the exchanges and bank oharges, which his company and every dairy company were up against. The question of the dairy pool was. also touched upon Continuing, Mr. Collins said: "Your directors visited Stratford and discussed the pool and supported it as far as-freights, insurance, and shipping were concerned. However, after hearing an address by Mr. Grounds, they decided to support the poal in its entirety. Freights and exchanges were difficulties the company were up against, and the pool should minimise these. The grading for the recent year was also in advance of other years being 1 to 2 points higher, which fact the directors thought was due to tlieir installation of pasteurisers." Mr. Farquhar criticised the pay-out as .compared -with some of the neighbouring companies. The pay-out of several other companies was in excess or their, own. <& -- ; , The chairman, "in reply, referred to ' the policy adopted by the directors in wnting down their plant, cottages etc. and to the fact that during the'early ! part of the season the company made ! butter, which was not so profitable as cheese. If during that period cheese had been made; an additional ljd would have been at their disposal The policy of writing down heavily was responsible tor the present sound financial position the company enjoyed. Mr. Lennon, the company's auditor, briefly addressed the meeting, explaining technical points under discussion in I the balance-sheet, and he was accorded a vote of thanks by acclamation Nominations were received for the vacancies on the directorate as follows • Messrs Lonsdale, Hughes, and Graham'" ii cii 6 W ere two vacancies only to be hi led a ballot was necessary which (resulted in, Messrs Graham and Lons- ; dale being elected. The poll resulted: jMr. Graham 248, Mr. Lonsdale 218, Mr. Hughes 126. [ Messrs Graham and Lonsdale thanked ( the shareholders for their support. A discussion arose as to why the company was not exhibiting at shows, and after a brief discussion it was resolved to exhibit at shows in future The manager pointed out that the very best raw material was necessary for success, and the suppliers were able to give that by cleanliness and attention' to tne feeding of their herds. It had been suggested that the company make butter for a month longer, which would enable the calves to benefit from the skim-milk, but upon the advice of the agents the company had decided to make cheese forthwith. A general discussion on the merits of making cheese or butter took place, but the matter of changing over was left entirely to the discretion of the directors. A shareholder (Mr. Rowlands) wrote urging that proxy voting should be eliminated, and after much discussion it was decided that no action be taken. . The services of Mr. Lennon as auditor were .again engaged at the same remuneration as last year.

It was resolved th;it the honorarium of the chairman be increasec-l from £50 to £75 per annum, and that the directors' fees be increased from 10s to 15s per meeting. A hearty vote of thanks was accorded the chairman, directors, and staff for their services and the success which had resulted from their united efforts. 'A \?ote of thanks to the ladies for the luncheon was carried by acclamation, and the meeting was brought to a close.