PIO PIO DAIRY CO.

King Country Chronicle, Volume XXXIII, Issue 4814, 24 July 1939, Page 5

PIO PIO DAIRY CO.

ANNUAL MEETING. INCREASE IN SUPPLY EXPECTED. ELECTIONS TO DIRECTORATE. In presenting the annual report of the Pio Pio Co-operative Dairy Co., Ltd., at the annual meeting of that company on Saturday, Mr. J. E. Trust, chairman of directors, said that he considered the company could be congratulated on making the very successful payout of 15.21 d per lb butterfat at the farm gate. The balance sheet compared favourably with other factories situated geographically the same as Pio Pio. The reduction in the output had been brought about by circumstances over which the company had no control, and he did not think any fewer cows had been milked than during the previous season. He felt fairly confident that, given reasonable climatic conditions, the output would increase fairly considerably during the coming season. Mr. Trust continued by explaining the items in the balance sheet. Most of these showed a reduction on the previous year, though the costs per lb of butterfat had increased, mainly because of the reduction in output. Amongst the other factors resulting in the increase in costs per lb Mr. Trust mentioned that whereas in the previous season the company had worked on the new award for only five months, for the season just ended the higher wages had been paid throughout.

Dissatisfaction was expressed by Mr. Trust at the operation of the butterbox pool. Though an economy had been effected by the use of a cheaper box for locally consumed butter, owing to the increase in the cost of the export box under the pool the cost for boxes had shown a considerable increase. Last year the Government went further and pooled the freight as well as the cost of the butter boxes themselves. Mr. Trust considered that this was most unfair to the King Country factories. A deputation of four had during the year paid a visit to Wellington on the matter to place their representations before the Minister, but without avail.

“I think you will agree that when we have our little mill here that could supply us at about Is fid, it is most unfair that we should have to pay Is 11 and receive no recompense for the extra costs we incur by our distance from rail and ports,” said Mr. Trust.

The turnover of the trading departmetn had shown an increase during the year, and the small profit of £36 11s 4d was made.

After the adoption of the report and balance sheet had been moved by Mr. Trust and seconded by Mr. Fellingham, questions were invited. After inquiries by Mr. V. R. Smith in regard to the plant account, and Mr. G. Voyce in regard to the allocation of office and administration expenses had been answered, Mr. Larsen asked if the profits of the trading account should not be handed back to those who bought from the company by way of rebate.

The secretary, Mr. D. Rodger, said that this question had many times been discussed by the directorate, but there were great difficulties to be encountered. For instance, it would be impossible to grant any rebate on such goods as manure and wire, for only on the small items was a sufficient profit made to warrant this.

; Mr. Larsen maintained that as it was the small supplier who ran the trading department, it was the small supplier who should receive any benefits. Under the present system any profit was of the greatest advantage to the large supplier. In answer to Mr. G. Voyce, the secretary said that all charges made against the trading department were quite legitimate—as the directors spent much time on considering trading department matters, and as much of the secretary’s time was spent in administering that department, it was but fair that only a proportion of fees and salaries should be charged against the manufacturing account. He did not think that, taking everything into consideration, the payout was benefiting from trading department profits.

A tribute to Mr. W. H. Topp, who had been a member of the directorate for 10 years, and was resigning because of giving up dairying, was paid by Mr. Trust. Mr. Topp, he said, had performed excellent work for the company—he had been the right type of man with whom to work, and had always given of his best. In returning thanks, Mr. Topp said that he had spent 40 years dairying, so that it was no wonder he was sick of it! On the directorate of the company he felt he had done no more than the shareholders expected of him.

On the suggestion of Mr. I. M. Kidd, the. six candidates for the four vacancies on the directorate, Messrs. P. S. Cullen, A. H. Morris, T. A. Summers, E. W. Larsen, C. S. Roberts and J. E. Trust, each gave a short address All spoke in support of the principle of the guaranteed price, though some made reservations regarding the limiting of the price that had been paid, or mentioned the problem of rising costs.

The voting resulted as follows: Mr. J. E. Trust, 113 votes, Mr. P. S Cullen, 106 votes; Mr. C. S. Roberts, 94 votes; Mr. A. H. Morris, 74 votes; Mr. T. A. Summers, 69 votes; and Mr. E. W. Larsen, 64 votes. The first four (the three members of the Board eligible for re-election, and Mr. P. S. Cullen to fill Mr. Topp’s place) were declared elected. All the candidates returned thanks.

At a subsequent meeting of the Board Mr. Trust was re-elected chairman.

A report on manufacturing costs and matters relating to supply of good cream was submitted by the factory manager, Mr. Singleton. The fixation of the chairman's honorarium and members’ fees was left to the directorate. The company’s auditors were reappointed for a further term.