Dairying at Rongotea

Manawatu Times, Volume LIV, Issue 7242, 23 August 1933, Page 11

Dairying at Rongotea

DAIRY COMPANY SHAREHOLDERS MEET Tho annual meeting of suppliors to the Rongotea Co-operativo Dairy Company was held at Rongotea yesterday, tho chairman of directors, Mr \V. C. Gloyn, presiding over a large attendance. Tho auditor's report mentioned that £330 had been written off the lorries as depreciation,' £376 off the plant, but nothing off the buildings. Nothing was written off the buildings last year and this year it was again thought more important that the lorries and plant should bo depreciated rather than the buildings. However, it would be well to write off a substantial amount next year. The amount written off the lorries was more than normally required and that off the plant equalled 7.85 per cent., which was hardly as much as really necessary. As regards butter unsold, tho value of that had been carefully worked out on tho basis of market, prices and had been safoly set down at £1571 12s 6d. In moving the adoption, of the annual report, the chairman said ho was pleased to report an increase in output for tho season. Dairying conditions had been splendid and tho winter had been an excellent one, onabiing the cows to come in in good condition. Although the season had been one of low prices, consumption in England was being maintained at a high rate and with tho production in European countries now past the peak, there should not be any further fall in prices. Tho chairman declared that it would be a bad thing for New Zealand if a quota was introduced," as .the country was not yet fully developed and production would increase. Ear bettor would it bo to reduco tariffs on. British goods and buy moro British, manufactures so that England could buy more of our produce.

The exchange rate was equal to 101 f.o.b. butter, which after allowing for the cost of manufacture, was equal to a pay-out of 11 Id buttorfat. The exchange had'been a great help to the producers had represented a bonus payment of I'd.' There had been increasing rumours that exchange would be reduced, so much so, that f.o.b. offers were not so tempting as would appear on the surface. As regards prices for tho coming season, he was unable to forecast the situation, though reports were bright, but it had to be remembered, the world was still in an unstable condition. Most of the company’s butter had been sent overseas bn consignment to three agents to enable a comparison of prices' to be made. The company had also shipped through Wellington to enable a comparison to be made with Wanganui. While the total of the sales was not to hand, he was able to report that the terms of the three agents were about the same in respect of bulk butter. Patted butter had shown a premium on bulk and the patted trade showed signs of growing. Local, sales had been well maintained and through the organisation of dairy companies throughout the district the price-cut-ting and rebates that had been so detrimental in past years, were nowpretty well wiped out, 1 ana. all companies wore selling on the same terms. Manufacturing costs had been cut down as far as possible and were 1.41 d per lb butterfat. The total farm to f.o.b. costs had amounted to 1.74 d lb butterfat. Overseas costs had been slightly reduced and .averaged 1.22 d lb butter. The addition of another vat would enable tho company to deal with another 200 tons of butter. Power costs had been 17s lOd a ton as against 19s Ojd last year, representing a saving of Is 2id per ton. As the factory was a brick one, the directors thought depreciation could bo very woll left till next year. The chairman concluded by appealing to suppliers to be loyal to the company. There were too many farmers in the district sending their cream outside.

The chairman moved that 5 per cent, be paid on all paid-up capital, and a Id bonus on butterfat supplied from July 1, 1932, to Juno 30, 1933. Mr A. J. Sanson said ho did not agreo with the proposed Id bonus over tho whole season, because of the bigger prices received in tho spring months. Thos who had the biggest supply during July, August, and September had already received a premium through the better prices. In his case it meant a loss of £26 13s, because he had been an. autumn supplier. He thought the basis should be distributed oa the same lines as the Cheltenham Company had done. Other speakers said they were also in the same position, and it seemed moro or less a matter of luck. Mr Sanson moved as an amendment that tho matter of tho bonus bo referred back to the directors with a recommendation that the payment be equalised on the basis of the ruling monthly market rates. The chairman pointed out that bonus cheques were already made out, and it would entail delay in payment if tho amendment was carried.

Mr Sanson said that had he had his cows in early he would have, with the Id bonus, received as much as l'ld instead of 9d. By having his cows in late ho was to be penalised. Mr P. Campbell moved as a further amendment that the directors be recommended that when dealing with the surplus next season, the bonus payments be equalised over tho season instead of a uniform payment being made. Mt McKinnon seconded.

The secretary stated that to carry out Mr Sanson ’s proposal would moan the cancelling of all bonus cheques and two or three weeks’ work going over all the figures again. Mr Sanson: Well, I’ll give £lO towards if.

Mr Campbell said the motion, if carried,. would also., mean the giving of notice of. motion at a directors’ meeting to. cancel the minuto on the books regarding the uniform bonus. That would also entail delay.

Mr Arnott agreed with Mr Sanson that the directors should' not have gone as far'as they did. The payments should have been distributed on the basis of prices received during the vear.

Mr Campbell stated that while he

agreed with Mr Sanson’s contention,it seemed too late to take any action now. The chairman thought the meeting could very well leave the matter and go on with other business. Mr Wallace disagreed. There were motions before the meeting that would have to bo put. Mr Redmayne was equally emphatic that the motion and amendments would have to be dealt with. The meeting then argued whether suppliers should vote or only shareholders, and it was decided that shareholders only had the privilege. There followed an argument as to which amendment should be put to tho meeting first, the result being that Mr Campbell withdrew his for the time being. Mr Sanson’s amendment was then put to the meeting and lost. Mr Campbell then introduced his amendment. The chairman explained that one of tho difficulties the directors had been up against last season was the heavy drop in prices. The spring payments had been made too high. Mr Campbell’s recommendation was adopted. No Virtue In Dirt Mr N. Boyd, departmental farm dairy instructor, addressed the gathering on his work and tho need for cleanliness in producing cream if a first-class butter was desired. Ho pointed out that of the 240 suppliers to Rongotea company, 124 used milking machines which represented. 85 per cent. Of these 124 suppliors,. the machines of 66 had been classified as good right throughout the season, while 42 had been classified as fair and 12 as bad. Mr Boyd complimented those in the class described as good, adding that the classification in all the 124 eases had been made on the condition of the machines judged throughout the season. He also spoke of the splendid way suppliers were receiving the instruction he was giving. Ho had made 2100 visits in his area during the year and had only been ordered off a form once. If plants wore only fair farmers could not expect moro than a first grade article and were on tho way to a. second-grade . one. Finest was not within., their reach. Rongotea suppliers wore endeavouring to effect improvements and about 50 had renovated obsolete machines, while some had gone as far as to install new machines. Mr Boyd stressed the need for co-opera-tion between instructor and farmer. Mr Boyd was thanked for his report. General Mr P. Campbell asked how the directors had arrived at 8d for tho averago advance over all grades. Tho secretary said the true figure was 7.92 d and. the penny bonus would bring the average up to 8.92 d. Answering a question, the secretary said the cost of patting was between 6s and 7s in London and tho premium received was Is 8.13 d per cwt. The secretary read a lotter that the directors had received from Mr C. S. Hamlin, who is on & visit to England. Mr Hamlin said he had visited Tooley street and had seen Rongotea butter unloaded and made up into pats, some even for Jamaica. He had been assured that their agents had customers who preferred Rongotea produce. A ballot for three vacancies on the directorate resulted in the return of Messrs j. Duke, S. W. Curran and W. A. Davison. There were six nominations. Mr F. Saxton addressed the meeting on the work of the Co-operative Pig Marketing Association in the Manawatit"'district, and urged suppliers to support the movement. A vote of thanks was accorded the directors and staff and th. 6 ladies of thG horticultural.society who provided luncheon.