Tamaki Dairy Company

Manawatu Times, Volume 64, Issue 173, 25 July 1939, Page 4

Tamaki Dairy Company

Past Season Reviewed

ANNUAL MEETING OF SHAREHOLDERS The annual meeting of shareholders of Tamaki Co-operative Dairy Co. Ltd., Te Kehunga, was held yesterday, when tho chairman of directors (Mr. A. H. Hansen) presided over an attendance of about 70 farmers. A motion of sympathy with the relatives of the late Mr. Peter Hay was carried in silence. Directors’ Report The annual report read as follows: "In last year's report it was estimated that the total payments per pound of butterfat for the year ended May 31, 1938, would approximate 15.96 d for cheese and 13.98 d for butter. The actual season-average payments which were finally made were 16.413 d for cheese and 14.363 d for butter. All unsold produce in tho grading store lias been valued (allowing for charges and recoveries) on tho basis of the guaranteed price being paid at balance date. Unsold cheese for local sales lias been valued at S|d per pound, creamery butter at Is 4d per pound, and whey butter at Is 22d per pound. Payments to balance date in respect of the year under review equal 14.65 d per pound of butterfat for cheese and 14.95 d per pound butterfat for butter. It is estimated from the accounts as presented tho total season-averago payment per pound of butterfat will bo approximatel3 r 17.35 d for chceso and 15.32 d for butter. The directors recommend that tho balance of £6711 5s in the appropriation account, after providing £613 8s for payment of interest on share capital, as allowed in the Articles of Association, and after provision for taxation, bo disposed of as follows: Further payment of 2.25 d to cheese suppliers; further payment of .33d to cream suppliers; further payment of 2.5 dto whey cream suppliers; the balance to be carried forward. In moving the adoption of the report, Mr. Hansen stated that climatic conditions during the late part of the summer seriously affected the output. There were a few extra suppliers to cheese and eome milking a few more cows, so that the cheese output was up 48 tons, but butter declined by 40 tons. Tho butter suppliers, he said, w T ere further away from the ranges in the areas where the drought was more severe. It was a very extreme season and some farmers turned over to sheep. Wages costs increased in both butter and cheese branches, where the wages were raised by the award 10s per man per week, and for two months of the season seven vats were used for cheese manufacture with the Tesult that retrospective payments of wages on the basis of seven ivats from the start of the season had to be made. The grades of milk have been well up to standard and cheese compared very favourably with former years. Cream had, he said, graded higher this year and butter was graded slightly lower as at the end of the season they went on to alternate day collection of cream to save expense. During the season approximately 2000 boxes of butter reached the high grade of 95, which was very satisfactory. (Applause). He reminded the meeting that in comparing the figures for this year and last that tho previous season was only an 11-month year and some expenses were therefore carried forward. Referring to the Tecent utterance of the Prime Minister regarding the guaranteed price and the possibility of a referendum of dairy-farmers, Mr. Hansen stated that Mr. A. Linton, ward member on the New Zealand Dairy Board, had inquired whether it was tho boareps intention to call the Dominion Conference delegates together to reconsider tho whole principle of the guaranteed price. This, it had been discovered, said Mr. Hansen, would not be done because it was felt that theso delegates would have no mandate from the rank and file of the industry. The Dairy Board was considering the price for the coming season.

The Farmers' Union, said Mr. Hansen, had been criticised for statements made from time to time that the dairyfarmers as a whole were against the guaranteed price. Ho preferred to moasure tho union by the good it had done than condemn it for any possible mistake it might have made. The industry, said Mr. Hansen, had appointed three capable men to tabulate all the known costs and aspects of the facts and figures in connection with the guaranteed price and lie thought the matter would be safo in their hands. Ho suggested that any resolution from the present meeting might cramp their style, but he promised that if any conference was called, the shareholders would get an opportunity to express an opinion. With regard to the payouts mentioned in the report, Mr. Hansen stated that the clearance of both butter and cheese earlier than anticipated enabled a small increase in tho payouts mentioned in tho report, which were estimated at the date of balance. Tho actual payouts would now become 17.4 d for cheese and 15.45 d for butter. The auditor, said Mr. llansen, had some suggestions to make with regard to tho finance of tho company. During the year approximately £2OOO worth of dry shares had boen bought. Mr. Hansen also drew attention to

the fuel costs of .137 d per lb. butterfat for cheese and .139 d for butter. He thought that, considering tho increased cost of coal and railway freight, these figures were satisfactory and tho directors hoped to reduce the charge with a full season’s operations with electricity. The reduction of the butter tonnage output was also responsible for a higher figure. Mr. Hansen, in conclusion, eulogised the efforts of tho factory staff, Messrs. Roberts (chcesemaker), Hooper (buttermaker) and G. Paterson (managing secretary). He also thanked the directors for their co-operation. The adoption of the balance-sheet and report was seconded by Mr. Hitchman. Mr, A. England referred to the reduction in the amount of reserves, and the chairman explained that some £I6OO had been transferred from them and written off the Rua Roa buildings on the auditor's recommendation. Mr. Hansen also explained the variations in the increased payouts on butter and cheese as due to the fluctuations of output as mentioned previously. Repairs and Maintenance Mr. England also criticised the repairs and maintenance expenditure of £lOl2 in tho butter account which, he said, compared unfavourably with other factories locally. This, replied Mr. Hansen, was brought about by the practically total reconstruction of the butter-making part of tho factory. He stated that when the plant was built, no provision had been made for the rapid advance of tho butter industry to its presentday state. "We have now a modern factory," he added, explaining that, before reconstruction, the staff was handling large quantities under great difficulties, which had been eliminated by separating the butter and cheese divisions of the factory at a cost of £I9OO approximately. The directors had decided, ho said, to pay this amount off in three years in view of the uncertainty of the future and this resolution accounted for £BB4 of the depreciation. Mr. W. Archer also commented on maintenance items. Ho suggested that a smaller advance would effect a 20 per cent, to 25 per cent, saving in the amount of bank interest, which amounted to £BBO. Mr. T. Guerin said that, in fairness to tho secretary, it should be stated that, although they began on a lower advance, it was put up too soon. Comparison in Payouts Mr. G. L. Duff asked the reason of the Tamaki factory's payout being nearly |d less than Norsewood. This, ho said, meant about £4O to him. The chairman stated that many factors had to bo considered before a fair comparison could be made and he explained matters for Mr. Duff, the meeting going into committee. The roport was then adoped. Election of Officers. During the meeting the results of a postal ballot for three vacancies on the directorate were announced with the result that the retiring members of the board, Messrs T. J. Cullinane, G. T. Edwards and T. W. Lyall, were reelected. Mr. A. England was unsuccessful and the chairman, congratulating those elected upon their return, referred sympathetically to Mr. England's indifferent health which no doubt had affected the poll. Mr. G. Laurence, F.P.A., N.Z. (Hawera), wa3 reappointed auditor to the company at the same remuneration as last year. Orderly Pig Marketing. In accordance with his notice of motion Mr. A. O. Menofy proposed a recommendation to the directors "That this company apply to the Government for permission to establish a branch to conduct tho pig industry in the district, both local and export." Mr. Menefy 6aid that the company should pay attention to by-products marketing and retraced the history of the one-time Ruahine Pig Club. The now disused Rua Roa factory could be used for the new branch ho was proposing. Mr. Hansen suggested that either the directors or a small committee could consider the proposal, but no seconder came forward. Mr. England said the directors had discussed the matter some years ago and tho questions of water supply, drainage and nuisance were the obstacles. In view of the remarks made by the auditor earlier the company should consolidate rather than 6xtend its operations and tho discussion lapsed. Questioned regarding the guaranteed price, Mr. Hansen said it was quite all right as long as costs were allowed for from time to time. The present marketing system, ho said, was the same as that which operated before the Government came into power. Mr. Menefy referred to the Woodville factory's milk collection scheme and suggested that such a scheme should bo adopted by tho Tamaki Company even if it cost Id per lb. uuttorfat. The chairman and others raised a number of objections, not the least of which was tho cost over tho area, in question, and the subject w£S not pursued. Votes of Thanks. A vote of thanks was accorded Mr. Paterson and his staff Tor Ms management and to Messrs Roberts and Hooper for their services. These three ineo suitably replied. Mr. T. Guerin congratulated all suppliers on the quality of milk and cream sent to the factory. Votes of thanks to the chairman and tIK press concluded the meeting.