DAIRY COMPANIES

Manawatu Times, Volume 60, Issue 197, 22 August 1935, Page 8

DAIRY COMPANIES

Annua! Meetings of Suppliers Several Co-operativo Dairy Companies held their annual meetings yesterday when suppliers and shareholders wore able to review tho past season and contemplate the prospects ahead of tho industry. Rongotea Activities. At the Rongotea Company meeting, tho chairman of directors, Mr YV. Gloyn, presided. Prior to tho commencement of the business of tho meeting, votes of sympathy were passed. to tho relatives of the late Messrs J. YVill, J. Parker and G. H. Davison.

In reviewing the past season the chairman expressed optimism as to the coming season in view of the improved financial position in England. Now Zealand should feel in the near future tho beutlit of this improvement in affairs at Home. He understood there was a greater demand for butter in England and there was also a shortage of produce m America which must have a b.g inlluonco on tho British market. Rongotea Company had a parcel in a consignment of butter tnat had gone to America. Tho company had followed tho usual practice of consigning.. As regards the local markets, stabilisation was Doing effect and soon there should bo much better conditions prevailing. Overlapping of cream lorries i as also under review and he thought some satisfactory schemo could bo introduced into tho Manawatu to eliminate tho evil. YVith respect of cheese companies in tho district, tho Rongotea Co- mny had no desire to seo them closed up, as there was for boi. out where choose suppliers wore turn mg to butter, it was to be hoped thej would not send their cream to factories outside tho Rongotea area. The chairnu reported that the plant was in good order at tho factory, while improvements had been effected in the butter room. The electric trucks had been disposed of, a new motor lorry purchased and an old one put back on the road. The chairman went '■ l -~ into manufacturing costs for tho benefit of those present. The auditor had been pleased with the financial position ot tho company and suppliers’ had nothing to fear. Suppliers were to bo congratulated on tho cream grading figures Thanks were due to the staff for services rendered.

Tho report of the auditor (Mr P. L. Sim) recorded that depreciation had been written off plant, buildings and offico furniture to tho tune of £732 3s 2d which was an adequate amount. The lorries had been reduced to a reasonable ligure and the directors were co be congratulated on saving dealt so satis factorily with a difficult situation. Tho secretary (Mr H. V. Oaverhilf) reported that the unsold butter had been assessed for the purposes of tho balance sheet at Sss per cwt. but some of it had since been sold at 90s to 925. The balance available for appropnation as a bonus was thus increased from £13,0 17 13s Gd to £15,339 Os 9d. The secretary compared the balance sheet with the figures of the previous season, stating that there was little difference between them. The working expenses compared moic than favourably with tho average taken out by tho N.D.A. for the whole of New Zealand. Rongotea’s costs were lower than that average which was very satisfactory considering that the factory was not handy to the railway. There was nothing padded in the balance sheet and in respect of the payout, ‘ho figure shown had actually been handed to the suppliers. An analysis had shown that suppliers who brought their cows m in July and August last year had not done as well as those who had commenced the season in October. This peculiarity was due to tho abnormal season experienced, tho October cows responding better to the autumn rains. Speaking of the local market, the secretary said that a stabilisation schemo for the whole of Now Zealand would eventually be adopted. As far as Rongotea and other factories in the district scheme were concerned, the local market was panning out about -■*« per ib ~~..er than the export market. It -s decided to pay a dividend o, 5 per cent, on paid up capital.

Messrs C. fc>. Hamlin and R. Anderson were returned to the directorate unopposed. Air P. L. him was re-appointed auditor. A vote of thanks was passed to flu ladies of the Horticultural Society' for providing tho luncheon. Tho directors were accorded a vote of thanks for services rendered during the season. At a subsequent meeting of directors, Air Gloyn was rc.-cleeted chairman. Newbury Chairman. Appreciates High Testing HOPES THAT BETTER SEASON IS IN PROSPECT. Air Al. G. Hansen, chairman of directors, presided over the annual mooting yesterday of tho Newbury' Dairy Company, Limited. Speaking to the annual report (already published), tho chairman said that it had been rather disappointing that tho prices ruling for exported cheese in the past, year had been so low. The national milk scheme at Home, resulting in the manufacture of the surplus into low-grade cheese selling cheaply, had been largely responsible. How'ever, recent advices were that the English public was tiring of tho inferior article, and wmuld revert to the New Zealand product. He hoped the result would be a better pay-out to be recorded at the next annual meeting. Tho increaso in manufacturing costs had been duo largely to the dry season and the fact that a number of suppliers had left. The test achieved by the factory —4.49 —was one of the highest in tho district for factories of similar size.

The directors had not extensively considered the casein test, said Air Hansen. While tho test would probably have a high degree of accuracy, its benefits would more apparent where there was a high variation between the tests of individual sum>liers s HotYgyer,

in tho caso of Newbury, there was Jittlo variation, only a few points at tho most, so that tho benefits that might accrue from a change in the method ot tosting would not be sufficient to warrant tho expense that would bo entailed.

The conditions governing the local marketing of cheese had until recently been rather chaotic, said the chairman, but it was pleasing to know that a scheme for co-operative domestic marketing was now afoot. If carried through, this should provide for a more equitable distribution of tho market among ail companies. Mr E. YV. Collins pointed out that the wages costs wero as high for the season under review as they were two years ago, yet tho quantity of cheese manufactured was J9G tons instead of 245.

Tlio sc stary, Mr E. B. Jennings, pointed out that wages would be as much for a vat partially full as for n vat completely filled, and this woulo probably explain why wages had apparently not declined proportionately with output. The remuneration of tho chairman was lixed at £2O; directors’ fees were fixed at the same as last year, 10s per meeting attended. Mr Hansen explained that ho wms willing to accept a reduced remuneration as there was at present little activity in local marketing.

The meeting asked Mr Jennings to accept a bonus, but tho secretary said he preferred not to do this until the company’s affairs took a turn for the better.

A bonus was accorded tho manager irom the benzine account, and also a bonus to tho first assistant. Mr YV. Hunter was re-appointed auditor. Two diroctors, Messrs J. Linklater and E. YV. Collins, retired by rotation, while Mr A. YV. Hamlin had retired from tho directorate during the year. Messrs Colnns and Linklater wero reelected, and Mr C. Collins will be invited to fill tho vacancy. Tho bonus of 1.07 d, amounting to £7S7 4s sd, would be paid out on Friday, said tho seorotary, together with a dividend of 5 per cent, on paid up capital, amounting to £4B 10s 2d.

Homo comment was -mado on the vaiuo of farm dairy instruction, but no instruction was given the directors.

Tho usual votes of thanks were accorded.

All’s Well at Awahuri BALANCE-SHEET ADOPTED WITHOUT A .QUESTION. RETIRING DIRECTORS RE-ELECTED. Tho chairman of directors (Mr. N. Campbell) presided at tho annual general meeting of the Awahuri Dairy Factory Co., Ltd., which was held yesterday. There wero some 50 suppliers present and tho proceedings, which wero marked with much enthusiasm, stressed tho fact that tho company had had a most successful season and that tho suppliers were a very contented lot.. Tho first business on tho agenda paper was tho consideration of tho report and balance-sheet, and tho suppliers created something of a record when theso were adopted without even Clio question being asked. In fact, the complete absence of anything of a contentious nature for discussions left the suppliers somewhat in tho air, but rather than have tho meeting adjourned too quickly, they tried to turn it into a semi-political gathering. The chairman gave them a little latitudo in this respect, but ho did not let them get far with their pet subjects.

Report and Balance-sheet. In moving the adopton of the report and balance-sheet, which were taken as read, Air. Campbell claimed that to his mind it was one of the best presented to any dairy company in the Dominion. On behalf of tho directors ho congratulated the suppliers on another successful year. There had boon an additional payment of 2.320 d paid during the current month and ho reminded suppliers that this payment was nett, that it did not include the dividend nor any calculation for cream carting. In addition, there was no further differential payment between shareholders and nonsliareholders. Continuing, he said this additional payment brought the company’s total average payment up to 10.14 d per lb., or .7d per lb. higher than for last year. Ho added that the quality of the butter was still very high and that, theirs was one of tho best brands shipped from New Zealand, tho grade for the season being 94.807 (second on the New Zealand list), as against 94.562 last season. Air. Campbell mentioned that one of tho officers of the Agricultural Department, who had just returned from Groat Britain, in answer to a question at tho National Dairy Conference, had said that one, salesman at Homo told him that he got Is per ewt. premium for a brand of butter made r.ot far from Palmerston North, and that on a falling market the best brand always sold first. Air. Campbell left it to suppliers to draw tlicir own conclusions as to the brand referred to.

Speakirr'g of the Dairy Board, the chairman said the new board would do work that the old board had not been asked to deal with, such as the local marketing of butter and clieese, overlapping of cream lorries, and suppliers changing from one factory to another. Amalgamation of factories was also talked about. He contended that the best quality produced was by factories to which cream was delivered daily and received on the stage before one o ’clock and he also held that if any reduction was to be made by tho board in the number of factories, the start should bo mado to eliminate the companies which produced a low-grade article.

With regard to overseas marketing, Air. Campbell said experience had convinced him that New Zealand should not only seek for new markets, but should use every endeavour to keep those she already had, striving to make them bigger. This could only be achieved by finding out exactly what the customers wanted. He added that successful business was built up by keeping the goodwill of tho customors. Afr. Campbell then read extracts from congratulatory letters from oveiseas agents, who had written in glowinn .tonus of tho splendid .duality.

article produced at tho Awahuri factory. Mr. Campbell intimated that suppliers would bo required to decide whether the herd-testing subsidy of Gd a cow was to be continued. In conclusion ho thanked tho staff for the loyal manner in which they had supported the company in tho past. He also thanked the directors for their ready help at all times. In this Mr. Campbell made special mention oi the factory manager, Mr. Death, and tho secretary, Mr. C. D. Fraser, stating it had been a great pleasure to be associated with them in tho work of furthering the interests of tho suppliers. Concluding his remarks, tho chairman mado feeling reference to the death of Mrs. D. Collis and Mr. H. YV. Bennett, and ho moved that tho company’s sympathy with the relatives bo recorded, the motion being carried in silence.

Mr. E. O. Bond seconded tho motion that the report and balance-sheet bo adopted, and it was carried unanimously, not one question being asked. The chairman remarked that the absence of discussion indicated that the suppliers were satisfied, and lie thought they must have created a record foi tho Dominion. The directors wero then authorised to pay a dividend of G per cent, on paid-up capital. , „ Messrs. Dempsy and Litchfield were reappointed auditors at the same remuneration. _ Tho next annual meeting was hxec for the third YVednesday in August, 193 G, ia the Awahuri hall, a suggestion that .To Arakura hall bo the venue being defeated on a show of hands. Messrs. A. J. Baxter and Lyons, tho directors who retired by the effluxion of time, were rc-elccted unopposed.

Bonus to the Staff. Mr. Bond moved that a bonus be paid to the staff, tho manager and secretary to get £6 each, and other members £3. Mr. Bond said that tho company had a- very fino staff and that Jt was only right that suppliers should make some tangible expression o£ tlicir appreciation. This was seconded by Mr. Laurenson and carried. _ In answer to a question, Mr. Campbell said: “Until we can make certain that there can be no unpleasant reae tion at some future date, I am against guaranteed prices.” . The meeting then became semi-politi-cal in character during tho course of one discussion, and Mr. Bond remarked that if the shackles could bo removed from industry and about 70 per cent, of tho present taxation wiped out, New Zealand would begin to work towards recovery. This was after mention had been made of several of tho schemes that had been advocated as a way out, of New Zealand’s troubles. When the question of the subsidy for herd testing was raised, Mr. Baxter, remarking that the suppliers who went in for testing reaped the benefit, indicated he would move as an amendment that suppliers who were testing for the first time should bo subsidised to 1h p extent of Is per cow.

Tho amendment was lost. Mr. Stewart's motion that the subsidy be the same as for last year, 6d per cow for all testing, was then carried by one vote. One supplier asked if the directors could send out a circular outlining the articles procurable through tho company, but the chairman said the company dealt in very few lines —that the directors believed in tho live and let live policy, holding that they, did not intend to enter into competition with the business people they expected to purchase the company’s butter. Votes of Thanks.

, Mr. Laurenson proposed a vote of thanks and confidence to the chairman and the directors, this being carried by acclamation. Mr. Bond proposed that to the staff and tho meeting adjourned with a vote of thanks to tho chairman.