THE DAIRY YEAR

Northern Advocate, 18 July 1933, Page 2

THE DAIRY YEAR

MAUNGATAPERE FACTORY ■> , / .» ‘ . ANNUAL MEETING YE STEED AY. A LARGE ATTENDANCE. . The annual meeting of the Maungatapere Dairy Company was held in the Public Hall, Maungatapere, yesterday. The chairman, Mr L. Reynolds, presiding over an attendance of 75 shareholders.

In moving the adoption of the report and balance sheet (already published), Mr Reynolds made the following supplementary remarks; —

“I would like to take this opportunity of once again congratulating shareholders on the large increase in production on the previous year, 195 tons, or an increase of 25 per cent. This is indeed most satisfactory, and although the increased production can partly be attributed to improved fdrming methods, the main factor may have been the favourable season experienced, probably one of the best dairying seasons in this northern district for many years past. The rainfall was well dis- 1 tributed over all the summer months, and consequently there was abundant food supply for dairying stock. Grading figures of the Dairy Division, Department of Agriculture,, to dune 30 last, show an increase of 22.43 per cent for butter and 14.39 per cent for cheese, over the corresponding period for last year. 1 ‘ The past year, financially, has been a most difficult and anxious one, certainly the most difficult since my connection with the company, and, I think it can be assumed, the most embarrassing since the company's inception. "Prospects for the coming season* with prices of other products on the rise, appear a little more reassuring, and although we may not yet have ‘turned the corner,' surely we may assume having reached the bottom of price levels. "On .January 20 last the exchange rate was arbitrarily raised by the Government to 25 per cent, ostensibly with a view to relieving the acute position of the farming community. Just what effect the raising of exchange had on the prices of dairy produce cannot definitely be stated, but it is a significant feature that, almost immediately following the exchange increase, prices receded considerably and have remained at a low level ever since.

“A recent press statement that £IO,OOO additional was made available to a certain factory owing to the raising of exchange, is very much open to question, for such figures can only be baaed on the assumption that the exchange .increase did not adversely

affect London prices. Such an assumption may or may not, be correct; no definite proof is available; and it is therefore purely a question of opinion or conjecture. My personal view is that the exchange increase was a factor in decreasing prices* "The proposal for group, or pool, marketing of North Auckland dairy produce, which was before you last year, is still in abeyance. This question was briefly discussed at the North Auckland Conference in Kaitaia last June, and again at the Dairy Board Ward Conference in Whangarei since, but nothing of a definite nature has yet been done. More, probably, will be heard of this subject in the near future.

I "The agreement at the Ottawa Conference last year Imtween the British and New Zealand delegations with respect to our dairy produce, was that New Zealand should have free entry into Britain for a period of three years, conditional on New Zealand reducing import duties on British goods. So far these duties have not been reduced, but a. Government commission is now sitting taking evidence on this subject, with a view, presumably, to a reduction or abolition of these duties. Should nothing be done to reduce duties on British goods within the three-year period, it is possible, or even probable, the British Government may at the end of that period impose a' duty on New Zealand dairy produce. The duty against foreign butter at the present time is 15/ per cwt.

"On May 1 last, the Dairy Control Board took over absolute control of the export of all whey butter. This is a move in the right direction, for undoubtedly the indiscriminate selling of whey butter on the London market was detrimental to the quality reputation of creamery butter. We have ‘quality, quality' preached at us year in and year out, and in this direction I think New Zealand might well follow the example set by Denmark, and prohibit the export of all second-grade butters.

"The restriction proposal or suggestion is one which has been given so much prominence recently that it seems unnecessary for me to deal with it at any length here. The Dairy Control Board is united in opposing any form of quota or restriction, and in adopting this attitude I consider the board should be supported by every dairy company in New Zealand. Various governments for years past have stimulated and encouraged land settlement and development and this is still being done. Why continue this policy if we are already producing too much? Furthermore, the very foundation of New Zealand's wealth is its production from the soil. Restriction to my mind spells ‘stagnation,' though from latest reports it appears as if restriction in some form will be adopted.

‘‘During the past financial year a Murray deodoriser, also a patting machine, were installed in the factory. Both have proved quite satisfactory and are doing good work. Our butter last summer graded as high as 94.3. “Shareholders will be pleased to learn that, the Government subsidy on superphosphate is to be continued. Arrangements have been made for the collection of “bobby’ ’ calves, which are to be collected at the farmer’s gate, paid for by weight and in cash.

“In conclusion, I take this opportunity of thanking the staff for its loyal service on oup behalf, also my codirectors for their cordial support during what has proved a. most trying and anxious year.’’ Mr Reynolds also referred to the proposal of the Women’s Institute (as detailed in other reports) for factories to forward one pound of butter per supplier to England for free distribution by sister institutes there. The adoption of the report and ballance sheet was seconded by Mr T, Lionel. Mr J. Morrison said he noticed that no depreciation had been written off the share-holding in the Box Company, which shares, he understood, were worth only (10 per cent. The chairman said that it had been the custom of the company to show the shares in the Box Company at their face value, Mr W. Croucher drew attention to the price charged for butter to suppliers. Suppliers had been charged 10d and 104 d, whereas the average, price paid out was BM. The chairman explained that the object aimed at was to make the charge to suppliers equivalent to the average pay-out over the season. After a number of other questions had been satisfactorily disposed of, the statements were adopted. Directorate. Mo further nominations having been received, the retiring directors, Messrs L. Reynolds and T. Linnel, were reelected unopposed. Both briefly addressed shareholders, thanking them for their vote of confidence.

Dividend. The recommendation of the directorate that a dividend of 3? per cent on paid-up share capital be paid, was approved. * Travelling Allowances. Mr 11, Fraser proposed that, in addition to the allowance of 1(1/ per meeting, directors bo conceded 4-Jd per mile travelling expenses. This lapsed for want of a seconder. Mr .1. H. Hayward then proposed that directors living outside a five-mile radius be allowed a travelling allowance of 3d per mile each way.

Mr Johnson opposed this, on the grounds that those near the factory carried the cartage costs of suppliers in more remote districts.

Mr D. T. Wood: “Is this a co-opera-tive concern? If it is, there should be no haggling over the price of cream carting. ’ ’ Mr Hayward thought that representation from outside districts should be encouraged. His proposition was carried, and the allowance of 1(1/ per meeting for directors renewed. / Auditor. Mr F. L. Gunn, A.P.A. (N.Z.), was again appointed auditor at a remuneration of 20 guineas. General. Mr J. B. McEwan outlined the arrangements made for eolloeting bobby calves and payments at the gate. Mr Cutforth said that his return from calves, none more than a week old, had averaged 3/(5 per head. The chairman appealed for suppliers to support the industry and place it on a sound basis, as had been done in the Waikato. The meeting was addressed by Messrs M. W. Porter, farm instructor, and T. N. Brown, superintendent of herd-testing. The proposed distribution of butter through Women’s Institutes, was supported by the shareholders, and the company will make the necessary arrangements with the two local institutes. The meeting closed at 2.20 p.m. with votes of thanks to the directors and the staff. Chairman Appointed, At a meeting of the directorate following the annual meeting, Mr L, Reynolds was re-elected chairman, and Mr T. Linnel deputy-chairman.