Dairying at Tokomaru

Manawatu Times, Volume LIV, Issue 6628, 15 August 1931, Page 6

Dairying at Tokomaru

ANNUAL MEETING OF COMPANY.

Mr. J. R. Whyte, chairman of directors, prosided at tho annual meeting of the Tokomaru Dairy Company at Tokomaru yesterday. In reviewing tho operations of the company, the chairman said that the season had been a most unfortunate one for farmers and a great disappointmcr.j to all engaged in the manufacture oi cheese. Whilo it was generally expected that a lower level of prices would rule, companies were not prepared for the disastrous slump which actually took place. At the opening of the seuson cheese was selling from 76s to 83s but the market early showed a downward movement and prices continued to fall until the low level of 44s per cwt. was reached, the lowest price obtained for cheese over a period of 26 years. Fortunately the market had taken an upward movement and it was now generally agreed that the worst had been passed through and that the future trend of the market would bo upward although slow. Tho accumulation ot stocks appeared to be gradually dissolving and unicss something unforseen happened, the market should be steady as the supply and demand wero now fairly well balanced. At the same time it was difficult to accurately predict the prospects for tho coming year. Quite recently offers up to 6 3-16 d per lb. were made for cheese in store and afloat but ho understood that not a great deal of business was done at that ligure owing to the stronger views which the factories recently nave oeen taking on account of tho reports of improving consumption and steadily advancing quotations. The commanding position held by New Zealand cheese on the Homo market for the past six months of the year, was shown in the figures given by the New' Zealand Dairy Produce Board iu a circular issued last month. Of a total of 72,71)9 tons, the Dominion contributed 59,205 tons, equal to 80 per cent. Canada’s quota for the same period was slightly over 2 polecat. Pushing Local Sales. The cheese output of the company for tho season was 209 tons 7cwts. 2 qrs. 131b5., an increase of 60 tons over tlie previous season. With the exception of approximately four tons sold locally, tho clieesc was shipped on open consignment. Tho realisation on cheese sold locally amounted to £259, equal to 6.97 d or 65s per cwt at factory. During the past few months a great deal more attention had been paid to tho local market and it was the intention of the directors to cater more extensively for this trade and with that object in view, they were holding at the factory approximately six tons of cheese for future delivery. This cheese was taken into stock at,od per lb. There was also in store at Wellington on June 39, 421 crates of export cneeso taken inti account at 5d per ib. Tho realisations from this cheese snould show a good surplus. Improving Quality.

Thu amending reg'.iai.k'iis governing the manufacture ami export u£ dairy produce were touched upon by the speaker. There main purposo was to prohibit the manufacture and exportation of other than full cream cheese. It was also provided that the temperature of milk delivered at factory must not exceed 70 degrees Farenhoit; also that cheese made in August and September be held in the cooling room for 21 days instead of 14 days as hitherto. The regulations also provided for an adequate supply of water and plant necessary on the farm premises, for the proper cleaning of utons'ls; that tiic temperature of the cooling room be not less than 55 degrees; that the testing of milk for fat content must take place at intervals of not more than L2 -lays except during the winter. The object of the regulations was to ensure a cleaner milk supply, an improvement in quality of the manufactured amide and to bring about greater maturity in cheese prior to export. Lower Costs. Tho total amount of butterfat received for cheese-making was 22G,660ib5, an increase of 41,804ibs over tnc previous year. The yield of cheese was 2.6Gibs. compared with 2.67 in 1930. The cost of manufacture had declined from 1.13 d to ,83d and the cost of marketing from .65d to ,52d. Wages were £46 in excess of the previous season duo to extra labour required for the fourth vat. Tho usual 5 per cent, depreciation had been made on plant and buildings, tho latter comprising factory, two cottages and men's wharc and taken into the balance-sheet at a total of £936. The appropriation account showed a surplus of £586 and' this would have to be dispersed by the meeting. Mr. Whyte concluded witn a word of praise for tho manager (Mr. A. Howlands) for the excellent grade of cheese made. It was largely due to the care and economy exercised by him that the company was enabled to show a decided reduction in the manufacturing costs. Thanks wore also duo to the secretary (Mr. R. H. Spencer) and his staff for interest taken in the welfare of the company; and co-directors for loyal support accorded him in a year fraught with many difficulties. Suppliers Advised. Mr. J. H. T. Ilumo thought the suppliers were to be congratulated on the sound position of the balance-sheet but ho thought less butterfat should bo sold outside the factory. Had all the fat sold outside been made into cliecsc, the manufacturing costs would nave been still lower. Tho small extra return tho farmers may have made by home separation bad been lost in tho extra cost of making cheese. The chairman agreed something like 50 tons of cheese extra could have been turned out.

Mr. L. Wilton mentioned tliat wages in 1930 had amounted to 49d)d per cwt. of cheese while last season wages iiaci amounted to 40.3 d per cwt. The reduction was 9.1 d per cwt., largely duo to tho increase in output. The chairman stated that the saving in cost of manufacture and marketing was over Id per lb. compared with last year.

Mr. J. Liggins thought great credit was due to tho manager in the way he was working tho factory, and to his assistants as well (hear, hear).

The chairman said credit was also due to Mr. Hume for the great trouble he had gone to in connection with local sales. Bonus and Dividend. It was decided to pay out a bonus of id per lb. on all fat received during the season and a dividend of 6 per cent, ou paid up capital. Messrs J. R. Whyte, L. Wilton and A. N. Kelly, the retiring directors, were reelected. Mr. Hume mentioned that Mr. Whyte had made an excellent chairman and had given a great deal of time to the welfaro of the company. Mr. W. E. Bendall was re-elected auditor and the remuneration of the

directors was fixed the same as last year. In answer to a question, the chairman said the company had arranged with the Railway Department for export cheese to be railed this season. The saving would be between 9s and 2s 6d per ton. A reduction in cartage had also been obtained.

Votes of thanks were passed to the manager and his staff and secretary and his staff for services rendered during the year.