WAIPU DAIRY COMPANY

Northern Advocate, 14 August 1931, Page 3

WAIPU DAIRY COMPANY

THE ANNUAL MEETING DIRECTORATE RE-ELECTED. * _____ ABSENCE OF CRITICISM. The thirty-first annual meeting of the Waipu Dairy Company was held in tjlie Coronation Hall yesterday, the chairman, Mr D. H. McKenzie, presiding over an attendance of 60 shareholders. Year’s Retrospect. In moving the adoption of the annual report and balance sheet, Mr McKenzie attributed tlic slight decrease in output to the dry weather experienced from February until May. While congratulating the suppliers upon the quality of cream, the directors did not wish this to indicate that the standard could not be improved. If markets were to be kept in face of world competition, it was necessary to maintain a good product, tinjess every supplier did. Ins best, in this connection. »*V' 3 • i" ■ > ’» v -, ' ) *' * the manager could not be expected to turn out’a really good article.

Mr McKenzie said tho installation of the new machinery promised to be a valuable asset to the factory. The Anderson engine cut out the old variation in moisture content, and uniformity in, jra(l enabled the manager to manufacture close to the 16 per cent moisture. The result was that the factory was able to show a very satisfactory overrun. It was anticipated that the Diesel Crossley crude oil engine would bring about an appreciable‘saving in fuel cftSLts. , Tke engine wms np.w running satls|ac,tpri,ly. Prices. "Mr McKenzie sAi'Suf.ha-t- the past season, front a marketing point of view, was most disappointing. i’lie ebmpany had sold several parcels' ‘ f.o’.b.' Atfairly ■ satisfactory rates. When compared with others, Waipu’s payout of 13.35 d per lb was quite good, The chairman quoted the. following comparative figures Kaitaia 11,558, Kaikohe 10.9ij, Whang.aroa 10.9, Bay b’f'lslands 10.8, Port Albert 11.44, Maungatapere 11.684, j Maungaturoto 11.50 (including cost of 1 transit and;manufacture).

Mr McKenzie said that depreciation on buildings had been placed at a low figure, because recent alterations and repjacements had made the factory practically a new one. There was always a certain section which considered that confmei cartage'was preferable, hut so long as fhe collection could be dojjo'under fa halfpenny per lb. it was better for the company to run its own lorries.

,Tbe chairman made an appeal for every supplier to endeavour to increase the output of the Waipu factory, which he said was quite capable of handling tariff tjie pre.sfn£JMkfc. Me iJioofeed 'forward to the time when, instead of 400,! Waipu would be producing 700 to 800 tons. Increase in supply could best be bxpugh.t About jby fertilizers and herd testing. Unless a farmer tested, he W.as keojjigig masJ eo>w? which were not worth their feed, and the only way to cull a .herd jyas by testing. Discussion, The adoption" of r ’ffie Report was moved by Mr Cates, and scconde%~by Mr Hewlett. ’' ; i,! ' r ' ! Mr J, McLean inquired concerning the* inclusion' of dividend and cream collection costs in the payout shown oirtfib balance sheet. v ' "

The chairman said that these were not inMucTed; because they did not actually go into ■tfie'pockets’-of the suppliers. ' !

Mr E, E. McKay said that many factories charged ' collection 1 against the cream, Iff haulagb were included, a much better average payout could 6c shown. p Which Faetpry? Mr Garland inquired why the chairman had not quoted Whangaroi or Euawai in giving the prices paid by other Northern companies. His'estimate was that Waipu would have saved £2983 16s 6d by supplying Whangaroi. Mr McLennan said that he bad been unable to make out from the balance sheet how much the Whangarei Company had paid. If Waipu supplied Whangarei the new suppliers would have to pay extra cartage. Mr Cates disagreed with this. He thought, that if there wore an amalgamation, cream collection costs would be struck on a pro rata basis, so that a halfpenny would easily 'cover the matter, leaving Waipu a profit of Id. A daily collection would give the same percentage of superfine.

Mr E. W. Johns said that if Waipu had followed the practice adopted by some other companies in compiling' their payout, the figure shown would have been a much higher one. For instance, a certain number of suppliers had been allowed Is per pound cartage to lorry depots, involving a cost of £l4O. One Tree Point suppliers to the Whangarei Dairy Company had to deliver to a certain point on the m-iin road. Some companies made a consid erable profit on the trading department, but he did not agree with' handling suppliers’ money and paying it back at the end of the year. He knew of one instance where depreci i lion had been taken into account nr swelling the payout figure of a certain dairy company. The Waipu balance sheet did not include anything but ’.ho actual payout.

Mr D. J. McLean did not think the criticism on' the lines of comparison between the two companies was quite.

fair in view of the mandate given at the previous annual meeting, when the directors had been instructed to camion at Waipu. He pointed out that some factories computed their payout on the balance sheet on superfine values, whereas Waipu took an average on all grades. The chairman said it was impossible, without knowing all the considerations, to compare any two balance sheets.

General. Mr ,T. C. McKay thought the trading department, with sales of £3500, should have shown a better profit than £lO. It was not fair to those suppliers who did not deal with the factory, because they did not share any benefit. Mr Johns said that no profit was shown in the Whangare.i balance sheet. The secretary explained that wages and carting costs had been debited against the trading account for the first time.

Mr Oates thought that the disposal of buitterpilk; should bo worth more to the company than £ls 15s. Replying, Mr Hewlett said that what Was. needed was competition in tendering, Tho directors hoped to receive more for the contract next year. Directorate. For the election of three directors, four nominations were received. The poll resulted in the return of the three sitting members, the voting being,—A. IJ. McKenzie 146, D. J. McLeod 145, R, R, Mae Kay 143 (successful), M. Whyte 41. Each of the candidates spoke briefly.

Mr McKenzie said that, having been a member of the directorate for 30 years, the time was approaching when he felt he should retire. He believed that in these times the directorate should cut out all uneconomic expense. Mr D. J, McLeod caused a laugh by saying that the directorate comprised live hard-headed Scotchmen, but for real caution, the two others from! Ruakaka had the rest “beaten to u frazzle.” He said that the directorate’s travelling expenses last year had only amounted to £22, and much work was done with no expense to the company. After a' visit of inspection to One Tree Point and a conference with a representative of the Railway Department, who offered low rates provided the whole quantity was sent by rail, the directorate decided not to close with the offer of the Northern Steamship Company. Subsequent events had proved the wisdom of this. Mr R. R. Mac Kay appealed for suppliers with any complaint to make their case known to the directors personally, and so help appreciably in the company’s affairs.

Mr Whyte gave as his reason for nomination' .a thought that perhaps a change in the directorate would be to the good. The three elected candidates were all good friends of his, and he congratulated them on their return, hoping that at some future time he would be successful in gaining election. | Auditor. Mr F. L. Gunn was reappointed auditor with a 10 per cent reduction in fee. Earthquake Bisk. The action of the directorate in declining to take out earthquake risks, Which would involve a premium of £2B annually was unanimously supported. Dividend. The chairman announced that the payment of a 5 per cent dividend would not apply to money paid up during the past year, but only to shares completely financed by the end of 1930. Go-operative Marketing. Mr N. Whyte referred to the visit of the C.W.S. delegation tq New Zealand, and expressed the opinion that it would be to the benefit of the dairy industry to work in conjunction with 'this firm, the largest in the world. Not only did the C.W.S. pay a price equal to, and at times in excess of, individual agents, but' being a co-operative concern, it a,lso allowed a rebate. Instead of dealing w r ith 30 scattered small agents in Tooley Street, he thought it would be to the advantage of New Zealand to put half its butter through the C.W.S. and the rest through, say, six selected agents. The C.W.S. was now handling one third of the Danish production, and its successful exploitation of the goods it handled meant that butter was realising a much higher price in the Midlands, where co-operative effort w 7 as greater than in London, where the Tooley Streef agents operated. He moved as a recommendation to the directorate that, in making arrangements for the next season’s output, consideration be given to the New Zealand Producers’ Marketing Associa- 1 lion. was agreed to without dissent. JBackblock Bonus. It has been the practice of the Waipu, Company to allow suppliers living more than half a mile off a lorry collection route 1/ a trip, or id per lb of butterfat for cartage of their cream to the collecting depots. This system came under review.

Mr E. E. McKay, as a recipient of l;he’'*eoncession, moved towards its discontinuance, claiming that conditions had altered to such an extent that it was no longer warranted. Mr Draffin seconded the motion.

Mr Gardiner said that he had to cart his cream five miles one way or four another, through 15 gateways or a bog. Affirming that it was to the backblocks that the company had to look for expansion, Air D. J. McLeod voiced opposition to the proposed change. Many settlers had been resident in tho district 60 years without metalled roads, and until better access was provided the allowance, which he had

never shared, should be continued. j Messrs Johns and Garland spoke of the higher rating which farmers paid for the privilege of living on a metalled road, and Mr Eussell said that the droving of pigs or stock was not subsidised in any way.

Mr Gordon McLean, speaking against the motion, pointed out that, with the concession included, Waipu’s cream collection only cost ,41d per 1|), whereas level-roaded, compact Euawai, perferring the contract system, was paying .65d per lb. The chairman also opposed the change, although he thought that in a few years’ time it might be possible to cut out the allowance without indicting hardship. The motion was

lost, only four hands being raised in favour. Back-blocks Fund. The directorate .was recommended, on the motion of Mr D. J. McLeod, to bring before the notice of the Minister of Public Works the advisability of expending more of the back-blocks fund on cream routes. The Ladies Assist. The ladies’ provided a generous and palatable light luncheon and afternoon tea making the wealth of their hospitality a feature, as is usual ■with such functions at Waipu. At the close of the meeting appreciative votes were accorded the willing providers. Votes of thanks were also carried to the manager and staff, and a similar compliment was paid to the Press.