PIO PIO DAIRY CO.

King Country Chronicle, Volume XXIX, Issue 4732, 13 August 1935, Page 5

PIO PIO DAIRY CO.

ANNUAL MEETING. The annual meeting of the Pio Pio Co-operative Dairy Company, Limited, was held in the Pio Pio Town Hall on Saturday, there being about 110 shareholders and suppliers present. The chairman of directors, Mr. R. W. Neal, in moving the of the report and balance sheet, a summary of which has already been published in these columns, said all must agree that the Company still holds that sound position which it had done for some years past. This was a matter of congratulation to the shareholders, and it had been the idea of the directors as the years went by to improve the position. Unfortunately, during the past year he could not also congratulate the shareholders on the payout. At the last annual meeting it was hoped that the marketing position would improve, but these hopes were not realised — in fact, two months after the general meeting the price of butter went down to 655, the lowest price for many years. "But at the present time the prospects are unquestionably brighter, the stock position in London being better than for some years," Mr. Neal continued. "It appears that the exporting countries are going to have a lower surplus to send to England than for several years, and during the coming season I think we should realise a better return for our butter."

Dairy Commission's Recommendations

Mr. Neal continued by referring to the report of the Dairy Commission, one of the most thorough and exhaustive reports made in this or any other country on the dairy industry. The Commission brought down a large number of recommendations; some he agreed with, but unfortunately, these recommendations would require a great deal of money. The Agricultural Commission had been set up to further the report and was now actively engaged in making inquiry as to bringing down regulations to further the interests of the dairy farmer. Mr. Neal said he believed that one regulation that would be enforced would be that the cowsheds would have to be kept at a better standard than in the past. He did not know? whether universal dairy instruction would come into force, but it would probably come before the Commission, and probably before the next 12 months had elapsed there would be dairy instructors in the King Country to see that the cream arrived at the factory in the best possible condition. Mr. Neal stated he did not think instructors would cause trouble to the farmer who was trying to send the best possible cream, and as for the Company, he thought it would be in its interests to have instructors around. There were sheds which were not up to the mark, and the sooner this matter was remedied the better. Another question of interest was the Government scheme of providing cheap money for improving dairy sheds. As far as the Company was concerned, the directors could not see how advantage could be taken of this cheap money. The Company could not guarantee the loan to the Government of the man whose position was not sound —he might walk off a month afterwards, or go in for sheep. As for the sound suppliers, the Company could advance money for this purpose and the extra % per cent, charged would be more than recompensed by the ease with which the loan could be obtained. Crippled Children's Fund.

In accordance with the scheme advanced by the secretary of the Te Awamutu Company, about £2O had been raised in aid of the Crippled Children's Fund from suppliers and forwarded to Auckland, where it was acknowledged. Quite a large number of suppliers had gone in for sheep, and the output had dropped from 843 tons to 682 tons, or to about the output of the year before last. On account of the lower output, the cost of manufacture had increased from .63d to .66d, but was lower than it was two years ago with the same output. Owing to the low price of butterfat the directors decided at the beginning of the season to make no levy on share capital, and the paid-up capital had decreased slightly owing to a few shares being bought in. Mr. Neal then went on to explain the various items in the balance sheet. He referred to the workings of the stock advances account, holding that the "doubtful" cases could be counted on one hand, and he did not think the directors were taking risks on present stock values.

Trading Department.

In the trading department the turnover was down, this being accounted for by the fact that farmers could not see their way clear to use the same amount of manure as in the previous two years. Also, farmers had probably financed more manure through the stock firms. There had been a small profit of £l6B, but this was quite big enough—he would like to see it a bit smaller. This trading department was carrying its fair share of the cost of the Company's activities, and even a little more, and would not be a burden on the general shareholder.

Owing to the close grouping of the buildings which caused insurance premiums to be £4O or £SO greater per year, the directors had gone into the question of building a new store and office. The present accommodation was inadequate and would sooner or later have to be rectified. However, the board discussed whether it should go further with the store and trading department, or close it down at the first opportunity. After a couple of questions had been answered the report and balance sheet was adopted. There were five nominations to fill three vacancies on the directorate. Messrs. R. W. Neal, A. H. Morris, and T. Summers were elected.

The question of the continuance of the trading department aroused much discussion, it being ultimately decided to leave it in the hands of the directors.

At a subsequent meeting of the board of directors, Mr. Neal was re-elected chairman.