MILK SUPPLY COMPANY

Otago Daily Times, Issue 23330, 23 October 1937, Page 23

MILK SUPPLY COMPANY

TAIERI AND PENINSULA FIFTY-THIRD ANNUAL MEETING The fifty-third annual general'meeting of the Taieri and Peninsula Milk Supply Company, Ltd., was held on Tuesday, and was attended by a representative number of shareholders. Mr A. P. Fleming, chairman of directors, presided In moving the adoption of the directors' report, balance sheet, and accounts, the chairman said that the season had been adversely affected by climatic conditions, and suppliers of cream found a difficulty, owing to the abnormal season, in maintaining a high quality cream. The supplies of milk for town supply were very seriously affected, and a large quantity of milk was diverted from butter manufacture to town milk supply. At one period during the winter months, the first time in 53 years of trading, the company was not in a position to meet all requirements of its customers. The manufacture showed a slight decrease, but the quality was well maintained. The Dunedin factory, with an average grade of 94.959 points, gained the distinction of being the highest trading factory in New Zealand. Oamaru, with an average grade of 93.64 points, showed that the manufacture at this factory was of a very high standard. The output in the milk department through regular channels showed a satisfactory increase. In addition, the company supplied milk to schools from March to June when, owing to a shortage of supply, it ceased, supplying the schools, recommencing again at the beginning of October. The Government initiated the guaranteed price for dairy produce, Mr Fleming said, and this operated from August 1, 1936, the price for finest grade being 12 9-16 d per lb, with a premium for higher grading butter, and penalties for Tower grades. The guaranteed price for finest butter for this season had been fixed at Is IJa per lb. Producers were not unanimous that the guaranteed price as fixed was as high as it ought to be in view of increased costs. On September 4, 1937, the Butter Local Prices Order was gazetted, fixing the wholesale price of butter to retailers throughout New Zealand. All dairy companies had now to sell to retailers at the same price. Owing to the shortage of milk supplies during the winter, the City Council was approached by producers, and the council had given serious consideration to the question of establishing a municipal milk supply for the city of Dunedin. Extensive inquiries were made by the council in Australia, and in the larger cities of New Zealand. The general manager of the Municipal Milk Department in Wellington came to Dunedin to investigate and report to the council on the best method of improving local conditions. This report was to hand, but was no! vet available.

The Executive Commission 01 Agriculture visited Otago in November, to consider the rationalisation of the industry in Otago, and a boundary was agreed upon between Otago and Southland. As from February 1 1937 cream supplies south of Waipahi that were coming to the company were diverted to Southland. This accounted for a decrease in manufa:ture Arrangements limiting the districts and setting out conditions under which certain companies could receive cream supplies were also arranged at this meeting. The Executive Commission ot Agriculture considered it would benefit the producers of Otago if an amalgamation of dairy interests could be brought about. The Waitaki Dairy Company, Ltd., as a result of a meeting with he Executive Commission of Agriculture, placed under offer to the Co-operative Dairy Company of Otago, Ltd., and this company their assets, equipment

and goodwill. After consideration the two companies agreed to accept the offer of the Waitaki Dairy Company, Ltd., which company ceased to operate manufacturing and marketing butter as from June 30 last.

The directors gave much deliberation to the question of the amalgamation of the Co-operative Dairy Company of Otago, Ltd., with this company. As one of the pioneers in the industry, the policy of this company was, and always had been, to pay the highest price possible to the supplier. During the past 25 years, however, various competitive organisations had come into being, and this, together with the ever-increasing costs, had made it more than ever necessary to effect an amalgamation of the butter factories in Otago, and the sooner this was done the better would it, be for all the suppliers concerned. Since the accounts were closed a further payment had been made to home separation cream suppliers at the rate of 2d per lb of butter-fat for nine months, July to March, and Id for three months, April to June. This made the average monthly payment over Is Id per lb. Producers for town supply received higher average payments than for the, previous season. The directors considered In the best interests of the company that suppliers of both home separation cream and town milk shonld be paid the highest possible price. Owing to the shortage of milk supplies the price that had to be paid to the suppliers for milk was such that the margin between the payment and realisation ■was not sufficient to warrant a further payment to milk suppliers, nor for the payment of a dividend. The directors, in shareholders' interests, believed they had commended rightly in their recommendation that no dividend should be paid. Balance sheet figures of all assets were at conservative values, the chairman said, and the financial position of the company was pa~f ularly sound Prospects were for a substantial increase in the number of suppliers, and with a favourable season an increased output should be the result. Messrs J. S. M'lnnes and Sons (late William Brown and Co.) were again ■ elected auditors for the ensuing year The retiring directors. Jlessrs E. Y. Aitken (HighclifD and John Newlands Uncholme). were re-elected. At a subsequent meeting of directors Mr William Robertson (Middlemarch) was elected chairman for the ensuing 12 months.