DAIRY INDUSTRY

Manawatu Standard, Volume LV, Issue 244, 12 September 1935, Page 4

DAIRY INDUSTRY

MANGAWHATA COMPANY. ANNUAL AIEETING. Seventeen suppliers attended the 20th annual meeting of the Alangawlrata Dairy Coy., Ltd., which was held at the factory yesterday, the chairman of directors (Air R. AI. AA’hite) presiding. The report of the chairman for the year ended July 31 stated that the output of cheese had been 341 tons. The payment to date had averaged 9.55 d per pound of butterfat for the

12 months. The balance for distribution was £428, which would.mean another .33d, making 9.88 d for the season. The report concluded by thanking the manager and secretary and their respective staffs for their attention to the interests of the company- . The statistics were given as follow: Total milk made into cheese, 7,303,4621 b. ; total of milk separated, 226,344ib. ; total of butterfat made into cheese, 303,5221 b. ; total of butterfat separated, 10,9591 b. ; total of whey cream, 19,9191 b. ; cheese manufactured (341 tons 6 ewt. 0 qr. 91b.), 764,5211 b.; average yield, 2.518. ; average test, 4.15; average grade, 92.542; cost of manufacture, .77d; cost (factory to f.0.b.), .37c1; total, 1.14 d (previous year I.OSdR Aloving the adoption of the report, tlie chairman said there had been little

alteration ill the cost of production. The interest paid had fallen from £99 to £57 and in 1930 it had been £222. The directors bad decided to pay out ,45d over all tlie season’s supply (instead of the ,33d already mentioned, which would bring the whole season’s return to lOd. That was very satisfactory. The speaker touched on the holding of cheese last season by two Taranaki companies and the making of cheese at Tome, which, lie said, had forced prices down. Now, however, the surplus milk at Home was being made into butter, and the outlook was much brighter generally. Ala nu fact urers in Canada had been concerned with the swing over from cheese to butter, and the Government had voted 1,000,000 dollars to subsidise cheesemaking. The company’s output liad been graded third at Wanganui, tlie first and second place companies being Rapanui and AA’estmere, which were both near the port. The company’s fuel bill ratio had risen because of the decreased production, which meant that a lesser output had had to carry the same fuel costs. Another factor in increased costs had been the higher prices for imported articles, such as caps, bandages and salt. Air AA'. B. Croad seconded the motion, which was carried. Air AV. 11. Gimblett commented that although the output had decreased by 100 tons the fuel bill had not decreased proportionately. The chairman commented that six vats coukl be run at the same fuel cost as four Care should be exercised, though, in the use of the steam jet at the factory and in the amount of hot water taken. AA'lieii the steam dropped below a certain pressure the automatic stoker came into action and on many mornings it was going all the time that suppliers were using tlie

steam. Consequently, the costs were heavy for firing. Air R. Davis pointed out that particular care would have to be given to the fuel costs in the coming season as the price of coal had gone up. The chairman brought the discussion to a close after a round-table talk on the matter, urging that all should use their host discretion. In his report the auditor (Air E. B. Jennings) said that an amount equal to 24 per cent, had been allowed tor 1 the depreciation of factory buildings. In bis opinion at least 5 per cent, should have been allowed under that heading. Depreciation equal to 6 per cent, had been written off plant and machinery, which was considered reasonable. The land account had been written down to £IOO, the amount utilised being £165. AAJiile the amount written off was considerable, such a

policy was commendable where the book value of the assets was unduly high. It appeared that the value at which unsold cheese had been taken in was quite a safe one provided present prices bold until the cheese was disposed of. 111 commenting on the auditor’s report, the chairman said that in the matter of per cent, being written off the buildings account tire book value of the buildings and plant was £4200, and yet the insurance carried was £6OOO, and that had recently been checked by an inspector The auditor certified that 2.5181 b. of cheese had been made from each pound of butterfat used for cheese manufacture. Jn reply to a question, the chairman said' that the estimated price of unsold chose was 52s 6d. There were 368 crates shipped and 209 still in New Zealand, making a total of 597 yet to go-.oil the market. It had been decided to pay out the bonus now because the present was a lean time for suppliers. ! Air Davis commented on the position of tlie company as shown by the i balance-sheet, saying that he consid- | ered that it was in a very healthy 1 state. The buildings and plant | were covered by share capital and the | overdraft by outstanding accounts. I The remuneration of the directors 1 and their chairman was fixed at the ( same figure as last year, and Air Jen- ! liings was re-elected auditor 011 the motion of Air Davis. It was agreed to forward a letter of thanks to Air Jennings for his report, the contents of which had been noted. The retiring directors, Alessrs I. D. Cooksley, R. Davis and J. AATieeler, were declared re-elected, there being no other nominations. The meeting closed with a vote of

thanks to the directors and the staff, moved by Mr Gimblett. Tire chairman returned thanks.

TUI DAIRY COMPANY. MEETING OF SHAREHOLDERS. manufacture" OF CHEESE. Mr J. Boyce (chairman of directors) presided over the annual meeting of the Tui Co-operative Dairy Company last evening, when there were some 20 suppliers in attendance. The annual report recorded that the quantity of the cheese manufactured (green weights) was 261 tons 9cw! 2qr 161 b. The quantity of cheese manufactured (graders’ weights) was 258 tons lewt 3qr 2011). The average shrinkage from green weights to marked weights was 1.28 oer cent. The average shrinkage from marked weights to sale weights for what the company had account sales for was 2.42 per cent. The total milk received for cheese-mak-ing was 5,226,03111), and the total butterfat received for cheese-making 226,735.861 b. The average test was 4.34. The average yield of cheese to each pound of buttorfat was 2.541 b (graders’ weights) ; the average pounds of milk to eacli pound of cheese was 9.04; the average price paid per pound of butterfat for cheese-making was Bd. At July 31, 1935, there were 633 orates of cheese unsold, and ihese had been taken into account at 45s per cwt. The whole of the season’s cheese was sent Home on open consignment. The balance to the credit of the appropriation account was £1146 18s Id, and the directors recommended a further payment on buttorfat supplied during the past season as follows:—Id for August and September, $d for October, Id for November, December, anti January, l-)d for February and March, and Id for April, May, and June, plus 20 per cent, on the total. This will absorb the sum of £1144 14s 3d and will make an average payment of the season of 9.21 d. This will leave a balance of £2 3s lOd to he disposed of as the meeting may decide. The recommendations of the directors in the report regarding the disposal of a surplus of £1144 14s 3d were adopted.

Mr AY. C. Scott was re-elected to the directorate unopposed and Mr R. Davis was reappointed auditor _ Some discussion surrounded the position of butter and cheese factories, with particular regard to diminishing supplies being received bv the cheese factories. It was hoped that the Executive Commission of Agriculture would be able to improve the position, otherwise it was recognised it would be

[only a matter of 12 or 18 months before the Tui Company would have to cease operations owing to lack of supply. The chairman, in reviewing the past season, said the subscribed and paidup capital was the same as for the previous season. Sundry creditors at £520 4s Id, which included provision for accrued interest and directors’ fees, were £7l 5s 6d less than last year. The usual amount of Id per lb of butterfat, amounting to £239 3s /d, had been added to the reserve, which now stood at £2299 Os 7d. This represented 71 per cent, of the book value of the buildings and plant. The company’s overdraft at the bank showed a reduction of £232 Os 2d. The company’s fixed assets and shares in other companies were tho same as for the previous year. AVhilo unsold cheese had been taken in at 45s per cwt., the price at Homo had risen, to 51s, so that there would be a final payment when the account sales had. come to hand. The company’s production had fallen bv 32 tons, caused by the dry summer, but in spite 'of that manufacturing costs had been reduced from 3.11 dto 3.01 d The payment this year would be 9.21 d per lb of butterfat, compared with 9.644 d for the previous season, and as manufacturing I costs showed a reduction, thev must look elsewhere for the' reason for the 'smaller average payout. If they took the total received for cheese, exchange and whey cream, and divided it by the grader’s weights of cheese manufactur|ed each year, it would be found that for 1933-34 the company averaged 56s 2d a cwt. and for 1934-35 only 5.4 s sd, a difference of Is 9d per cwt. Dividing the same total by the butter, fat received, the figures were: —193334, Is 3.48 d; 1934-35, Is 2.86 d, a difference of ,52d which, less the reduced manufacturing cost, was the difference between this year’s and last year’s payout. The directors had done their l>est to keep down expenses and they had been efficiently assisted by the manager (Mr Lawlor). It was very gratifying to see that no second-grade milk was received at the factory and Mr Boyce asked for continued co-opera-tion ill that respect. A comparison of this year’s manufacturing and profit and loss accounts with the previous year’s showed that practically all items liad been reduced in sympathy with the decreased output, the main exception being fuel, the price of which went up during the year. The thanks of tho shareholders were due to the manager and his staff and secretary (Mr A. E. Mansford), for the manner in which they had looked after the interests of the company. At a subsequent meeting of direc- . tors Mr Boyce was re-elected chairman.