Dairying in the North

Northland Age, Volume 4, Issue 46, 9 August 1935, Page 9

Dairying in the North

ORURU-FAIRBURN CO.'S ANNUAL MEETING

The 34th annual meeting of the OruruFairburn Dairy Company was held at Peria last Friday, when there was a good attendance of suppliers, Mr. J. W. Hoskin, chairman of directors, presiding. Report and Balance Sheet

In his report on the year’s activities the chairman gave a very clear and interesting address to the shareholders.

Speaking of the new factory he said that the total cost of the factory had been £7069 3s 6d, including alt expenses. The new plant put in during the past season cost £2428 7s 2d, including new vats, boiler, condenser, shaftings and fittings.

The directors had made provision for £6500, and it was thought that out of that amount there would be £ISOO to £2OOO for additions to the plant, but all had been absorbed in the building. This meant that they had a little difficulty at the start in carrying on. To-day they had a factory which, in the opinion of the Dairy Division, was second to none in the Dominion, and was quoted as the model factory of New Zealand. It would not take many years to pay for the new factory. It had been arranged that a deduction of per lb be made from suppliers’ returns till the cost had been met. Last year the total deductions had amounted to £B6B ss, and at that rate it would take about seven years to pay off the debt. There had been a small surplus from last year which had been used in meeting interest for the first year and the whole of the £B6B was paid off the principal. The old building had been sold and realised £122 4s 9d.

During the past year there had been a saving in fuel costs of £235, and a further saving of £SO was expected this year.

Dealing with the promissory notes given by suppliers against the cost of the new factory, the chairman said the total amount required was £7746, and in fairness to the directors and other suppliers all should sign up. The Maoris had felt that they should bear an equal share of responsibility with the pakehas, and most of them had signed up, while others were willing to sign. As the output from the factory increased, continued Mr. Hoskin, the reduction of the debt would be expedited. New promissory notes would be issued for the reduced amount of debt owing on the factory.

At the end of December they were 23 tons down on last year, but with the favourable conditions later the year finished with an output of just on 11 tons better than last year. Quite a few suppliers had pulled out when it was decided to build a new factory, so that the responsibility had to be carried by a reduced number. The finances had been very straitened for a time and advances had to be obtained against supplies, but towards the end of the season the finances had improved. Today butter was realising in the vicinity of lid, and the June output had not arrived on the market yet, and by not having sold f.o.b. they would probably come out on the right side. He could give no forecast of the market, but advice from different quarters went to show that the market would remain firm during the coming season, and they were able to look forward with confidence to the future. The directors did not recommend the payment of any dividend on shares. The value of these shares had been increased by the new factory and after all where could a dividend come fiom but from butterfat.

Referring to the price at which butter was sold to suppliers, the chairman said this was Id less per lb than the wholesale rate. This was a concession no other company made, and it represented a difference of ,04d per lb butterfat in the payout. The cost of manufacture was ,52d per lb butterfat, whioh compared very favourably with a great many factories in the North.

An interim bonus had been paid last month and he was confident that they would be able to pay out a further Id per lb in September, This would bring the total payment up to a fraction under 9d per lb butterfat over all grades. This was a higher payment'than was anticipated when the balance sheet was prepaied owing to the sales of butter at an increase on that at which it had been taken into account Mr. Hoskin concluded by thanking the staff for their good work,' especially the manager, Mr. Rawle, during the transfer from the old to the new factory.

After various questions in connection

with the balance sheet (a precis of which has appeared in the Age) asked by Messrs J. Maria, E. I. Nilsson and P. Lambly had been satisfactorily answered, the report and balance sheet were adopted. Mr. Nilsson expressed appreciation of the manner in which the directors of the company had carried out their duties during a difficult period, and the marked improvement of the company over the previous year bore testimony to this tact. General Mr. W. H. Atkins was re-elected auditor, Messrs Pinker and Boyd being also proposed. A full discussion took place when Mr, Hone W 1 Kaitaia moved “That the articles of association of the company be amended so as to provide for a Maori representative on each board of directors”. The chairman stated that the Maoris represented of the suppliers, supplying l-7th of the butterfat to the company. A native member on the Board would assist greatly in dealing with the wants of native suppliers. Messrs P. Lambly, A. Frew, E. I. Nilsson and J ones spoke on the question, and although they realised that the move may be of advantage to the company still they were desirous of obtaining full particulars, especially in regard to the legal position before they would support the motion. This attitude was supported by Mr. J. Garton, who suggested that the question be deferred till next annual meeting, when the full position, including the legal aspect, could be put before shareholders. This would not affect the natives’ position, as already a representative of their race, Mr. Kaitaia, was a member of the board, and he was not due to retire for two years. At the request of the chairman Mr. Kaitaia agreed to withdraw his motion, and the secretary is to ascertain tile legal position and find how the election of a native representative is carried out in other companies where one is elected.

In answer to a question by Mr. Nilsson as to the directors’ attitude to the recent dairy legislation, and the amended method of electing the Dairy Board, Mr. Hoskin said that although the directors were opposed to some features in the Acts still they thought it better to give the legislation a tryout, as the Dairy Industry had asked for it. He considered that directors, being in close contact with the men standing, were in a better position to vote for board members than were the suppliers. The suppliers had the power to put in directors who will vote as they, the suppliers, wished. The directors had, by a unanimous vote, cast their vote in the ballot for Mr. Murdoch as they had for years been dissatisfied with the old member.

It was decided to hold the annual picnic as usual, and a committee consisting of Messrs G. Reylands, chairman, A. Frew, P. Lambly, P. Bourke and E. I. Nilsson, was appointed to assist the directors in the arrangements on the day. A number of questions were asked by Messrs Rogers and Maddox regarding the new cream carting contracts, and these were answered by the manager, Mr. H. A. Rawle. The chairman stated that the company would, by the new contracts, be saving £350 a year. Before the meeting concluded Mr. Hoskin said he was pleased to see so many suppliers present, and extended the wish for a better year ahead. Mr. J. A. Maria moved a vote of thanks to the chair, this being carried with acclamation.