BALLANCE FARMERS

Pahiatua Herald, Volume XL, Issue 12130, 23 August 1932, Page 2

BALLANCE FARMERS

AMALGAMATION OF FACTORIES A SUGGESTION MADE. Air J. FT. Windle, chairman of directors, presided over the annual meeting of the Balance Valley Co-operat-ive Dairy Co. Ltd., held in the factory building yesterday at noon. The attendance of shareholders was only fair.

The annual report read: “Your Directors have pleasure in submitting to shareholders the fourteenth annual report and balancesheet.

“Although prices for cheese have not reached the low level of the previous season, the markets have been still unremunerative for producers, and it is evident that lower values than have been prevalent must be looked to continue for some time to come.

“A considerable portion of our chees still remains unsold, and lias been valued on a conservatice basis.

“A further Jd per lb. butterfat lias been distributed to suppliers in July and your directors recommend ail. additional £d per lb. to be paid after the Annual Meeting and hope to supplement this by a further payment when all cheese realised. STATISTICS

“Steason ended 30th June, 1932: Milk for elieesemaking—2,97s,972lbs ; 131,668 lbs butterfat j butterfat separated—l39s lbs; average test 4.42; cheese manufactured—33l,s27 lbs 118 tons 7lbs) ; lbs milk to lib cheese manufactured 8.97 lbs; lbs cheese to lib butter, 2.51.”

In formally moving the adoption of the report and balance-sheet, Mr Windle said that as all were aware there was a considerable decrease in the supply last season. The general opinion was that this was caused by the climatic conditions. There was a very dry autumn, and the cows went off early. It was also very wet early in the season when production was not good. Prices had been steady all the season and did not fluctuate like the season before. Although a little higher than the year before, prices had not yet reached the cost or production. The general opinion was that there had been a decrease in production last year throughout New Zealand of about 331 b per cow. There was also a smaller decrease the year before. He did not know- whether this had been due to less top-dressing or whether it was due wholly to the climatic- conditions. Mr L. H. Holdaway seconded the motion for the adoption. In answer to an inquiry the secretary explained that 459 crates of cheese were not Sold so far and at tins number 122 c-rates Were not vet shipped. The chairman said it was to be hoped that the markets would improve a little more before tile balance was sold..

Replying to Mr L. H. Holdaway, the secretary said the costs of production compared pretty well with factories of the same size, in the district. The production dropped 20 tons 1293 crates) last year but the year before the output was a record. Costs last season had com© down a lot.

Mr Holdaway said they ought, to feel proud of the balance-sheet. Nearly all the main, costs had come down. The manager had. been very careful with the result that the balance-sheet was as good as it had ever been. The report and balance-sheet were then adopted. A SMALLER DIRECTORATE. The retiring directors, Messrs. J. H. Windle and P. McCarthy, were re-elected un opposed. Mr L. D. Lovelock was re-appoint-ed auditor. Mr L. H. Holdaway thought that three directors, instead of five, were sufficient to run the company. It would mean a saving to the company and a saving of time to the directors. Mr F. W. Long; “Three could run New Zealand.”

Mr Holdaway said that he for one would be prepared to stand down from tbe directorate. 'I he secretary said ,t would be necessary- to change the articles first and two extraorj: ’nr v meetings would need to be called. Perhaps instead of reducing the size of the board the five directors could depute any three to act and do the bulk of the business only calling on the full board for urgent matters. ONE FACTORY INSTEAD OF' TWO. Mr L. H. Holdaway considered that there should be an. amalgamation of the smaller factories, the two at ii.i liance for instance. It seemed ridiculous that the two should be kept going with separate costs when one concern would serve the district at half the total cost. The saving would pay the interest on a new concern. The secretary- said the capital cost of one of the factories would have to be scrapped. Mr Holdaway- said there was no way of increasing the supply to the Ballance Valley factory, in fact it looked as if it would decrease. Once they- reached the stage where they could not pay- out in comparison with competitive factories then the concern would go to pieces as they could not prevent the cream lorries coming in. To save themselves, the amalgamation had to come If such restrictions wore to be imposed on cheese, suppliers as a preferential payment on first-class milk (and, this would come) then it amounted to this—the survival of the fittest, and a small factory like Ballance, Valley was bound to go to the wall. Mr M. Edlin agreed that the tw-o factories should try and amalgamate There would have, to be a. sacrifice and it would have to come sooner or later. Mr Holdaway said if it was not mooted soon they would stand still till one factory or the other was pushed into liquidation. They ha,d to get out of the rut sometimes and think along progressive lines. He thought that if the settlers of Ballance met in a round-table conference they would find sonic basis of agreement on the lines of his suggestion. Mr L. Polglase, saidi the right way would he to call a meeting of the two factories.

From a social point of view too, Mr Holdaway said that an amalgamation would be preferable but the social side, of course, was only a secondary consideration. He considered that the amalgamation would be a paying proposition. He liad spoken to suppliers of the other Ballance company who were favourable to the proposal while others again, were noncommittal. He regarded it as just foolishness to go on as they were doing. Mr J. Callanan : “A new factory wants to be in the centre of Ballance,” Mr Holdaway: “For a new concern you need a guarantee of supply too.” The general opinion of the meeting was that one factory was sufficient to serve the needs of the district. One supplier said he understood that the Tararua Company was just going in for considerable new plant. Mr Holdaway: “If they do that the chances of amalgamation, will be more hopeless. Mr Windle thought that if a factory was erected in between tbe piesent two some suppliers at the remote ends would not travel to it and would supply elsewhere. He was afraid they would have a hard job to bring about the amalgamation The discussion ended here. THE EARLY SUPPLIER

Mr Holdaway stressed the need for all suppliers to supply the Ballance factory just as soon as it opened to enable the factory to run every day. The same quality cheese could not be made when the factory was running every other day as when, it was running every day. BETTER. MILK.

The manager (Mr H. Zeinert). thanked suppliers for bringing to the factory milk a little bit better in quality than the previous season. He hoped they would. stick to it and maintain the' improvement.

On the motion of Mr Callanan, seconded by Mr A. G. Hansen, a hearty vote of thanks was accorded the chairman, directors, factory manager and staff for their earnest efforts in the past season. The usual honorarium was voted the directors.

Mr J. H. Windle, at the subsequent meeting of directors, was re-elected chairman for tbe ensuing year