COLOURED CHEESE.

Pahiatua Herald, Volume XLI, Issue 12441, 6 September 1933, Page 5

COLOURED CHEESE.

WHAT IT MEANT TO HUKANUI. difference in prices. An enlightening address was delivered by the chairman (Mr R. Dougherty') at the annual meeting of the Hukanui Co-operative Dairy Co., Ltd., held in the Public Hall, when he gave an excellent review of last- season’s operations. There was a fair attendance of shareholders and suppliers. The report stated: “The whole of the output was sent on consignment through two agents, and comparison has shown that the prices realised have not been bea,ten by any other firm. The unsold cheese has been taken into the accounts at the agents’ advance price, so when the final returns are to hand there will be a considerable sum to add to the balance for distribution. “The directors recommend a payment of Id per pound on February butter-fat and 3d per pound on March butter-fat, and a further payment when all cheese is sold. ‘‘Provision has been made for 24 per cent, to be paid on share capital, which will be made when funds become available. “The cost of production is a little lower, and it is anticipated that a further considerable reduction will be shown in next year’s accounts through cheaper fuel. An automatic stoker has been installed, -which it is hoped will reduce the fuel bill to half its usual amount.’’ - Statistics: Pounds of milk made into cheese, 5,576,830: pounds of butter-fat made into cheese, 224,516 ; pounds of cheese made, 582,623; average test (cheese), 4.02; pounds of milk to lib cheese, 9.56: pounds of cheese to lib butter-fat, 209; pounds of whev butter-fat to 1000 milk. 2.03 : cost of making cheese, per 11> crated, ,82d; cost of making and placing f.o.b. all charges, but excluding depreciation, 1.27 d. ADVICE TO SUPPLIERS. The chairman said: “When reading the reports of different factories one observes that each refers to the fact that the past season has been the lowest pay-out for 25 to 30 years. I regret that I have to endorse this for our own company. The season opened with the promise of better prices, but these (hopes were soon dispelled, and the market went lower than eyer before. When the earlier shipments of cheese arrived on the market, in nearly every instance, the product failed to sell for what the agents had advanced on it. There was a acclamation on all these boats, file agents therefore cut down the rate of advance to us, so as to recoup themselves on the early shipments. Hence the ruinous pay-out for Febxuarv and March. One comparatively bright spot in the course of prices has been the difference in favour of coloured cheese. If all our cheese had been coloured the pay-out would have been over a penny a pound higher than it will be finally. We could have made a larger proportion of coloured cheese if the milk had been of better quality. Indifferent milk will not make firstgrade coloured cheese. So much -that we hear of mottled cheese, discoloured cheese, and the whole host of grievances which have brought cur “cheese into disrepute has been caused principally by low-grade milk. Yo.ii directors thought that all suppliers had solved and banished the bad milk problem early m the season. The grade notes were coming through continually as finest and we all thought that we could give ourselves a pat on the back. So a notice was posted at the factorv telling of our good fortune. I don’t know what happened after this, but it is significant that from then on the quality of the milk began to slip, and for some time no finests were recorded. One of our agents asked us to make all coloured about this time, as he was sure that it would continue to fetch a higher price for a considerable time Your manager tried to do so, but the milk being indifferent he had to revert to white. Now the price of coloured cheese has been as high as 10s per cwt more than white at times, and 10s per cwt means 24-d a pound more for your butter-fat. So you can figure wliat, our loss has been. I need not enlarge on this aspect. You are familiar from the reports in the daily newspapers as to the imperative necessity of sending the very highest quality produce -to Britain, our only- market. So I appeal to you this season to do your utmost to bring good milk—and then some, as the American would sav To this end the much-discussed dairy regulations have been framed. INCREASE IN OUTPUT. “The make of cheese lor the year was 260 tons, exceeding last year by 20 tons The cost of making' cheese and placing on board was a little over Jd less - per pound than last year and we hope to get the cost further reduced for the coming year. THE FUEL BILL. “The £uel cost has been unduly high for some time. Your directors have been watching the results of other factories which had experimented with electricity and automatic stokers, with a view to catting our costs. The use of electricity in the factory does not promise to give much easement in costs. But the automatic stoker should cut the fuel bill down a long way, if we can get results anything like other factories, and I think“we ought to be able to do so. Another saving which should be reflected in the repairs account will be the absence of the recurring cost of repairing the furnace. The wood firing was responsible for the continually breaking down of the walls of the furnace, the cost of repairs for which has helped to keep the annual repair account heavy. THE BALANCE-SHEET. “I don’t know whether you wish me, to compare the various items on the balance-sheet with last year’s figures. The items are practically ■, the same, with the exception that

fuel is £25 less, caused by the lower price paid, and repairs are £ll6 less, these two items principally accounting for the lessened cost of production. I have all last year’s figures here, and I -will give them to you if desired. IN A SOUND POSITION. “You will note that there is a cash balance at the bank of £ls 14s 4d in the working account. The loan account was paid off some years ago. This is evidence that the company is m a sound financial position, as there is also a good balance of assets over liabilities. THE AGEN’TS. “Your directors have appointed the same two agents to sell the cheese tor the coming season as handled the output for the last year. The cheese will go on consignment, but we have the right to sell any portion at. any time should a good offer be made. - THE BANKERS’ OPINION. - “Tlie prices realised for last season ranged from 37s per cwt to 59s 6d per cwt, and boat for boat, our prices on the whole were equal to any. What of the future? Has the corner been turned? Will prices from now on improve ? Those gentlemen who are usually most conservative and pessemistic (1 mean the bankers) say that prices will slowly but surely improve. The politicians say that "better times are in store. The prominent men in the dairy industry say that we are on the way to prosperity. I think that of all these opinions, that of the bankers is the most encouraging, because in the final analysis finance determines values. And our industry is based on finance. When speaking of values bankers usually under-estimate as .compared’ with the rest of the community. So I think we have cause for optimism. •Any question you may wish information about, I will do my best to answer.”

The report and balance-sheet were adopted. Messrs T. O. Colder, E. A. Harrington and W. O. Twentyman were elected unopposed as directors. Mr W. C. Harrington, of Palmerston North, was re-elected auditor.

At a subsequent meeting of directors, Mir R. Dougherty was reelected chairman.

At the general meeting a vote of thanks was given to the chairman, the manager (Mr R. W. Foss) and staff, and secretary (Mr A. G. Parker) for their efficient services.