MANGAHAO SUPPLIERS.

Pahiatua Herald, Volume XLIV, Issue 13638, 24 August 1937, Page 4

MANGAHAO SUPPLIERS.

PREPARE FOR SEASON. R ETI REM ENT OF MR. R- C. YATES. The twenty-fourth annual meeting of the Mangahao Co-operative Dairy Company, held yesterday in the Knawhata school and presided over by Mr R. C. Yates, was very well attended. The report placed before the meeting read as UDder: “Advances to suppliers throughout the season have been, made at lid per lb butter-fat, except tor August when Is was paid ; a further payment of Id per lb for the season is being paid in July, and it is proposed to pay a further Id per lb from September to May inclusive at the annual meeting, any further payment to be determined later when all cheese shipped and paid for. “The output has been slightly larger than last year. As anticipated, costs to f.o.b. show an increase, though not as much per lb butterfat as your directors anticipated. “Your directors have increased the Reserve Fund created last year, by the addition to it of rebates on past seasons received from the freezing company, also shares in N.D.A., Etd. “You will be asked to elect two directors in place of Air W. R. Davenport, who retires by rotation and is eligible for re-election, and Mr R. C. Yates, who is resigning on account of relinquishing dairying.” STATISTICS.

The following statistics are given in conformity to the Dairy Industry Regulations:—Season 1935-36: Average jiay-out, 13.00 d i>er lb butterfat. Season 1936-37: Number of suppliers, 12; 3,120,7351bs milk; 137,156 lbs butter-fat; average test, 4.39; 343,7841bs cheese made; 9.121bs milk to lib cheese; 2.s<)lbs cheese to lib butter-fat; average grade of cheese, 91.70; milk grade percentage, first grade. 90.05 per cent., second grade .95 per cent. ; average advances to sujijiliers, 11.02 d Jier lb butter-fat. estimated surplus, 2.50 d Jier lb but-ter-fat.

THE CHAIRMAN’S REVIF.W. “In formally moving the rejiort and balance-sheet I regret that 1 am unable to present to you a better jiayout than that of the jirevious season. The guaranteed price has not resulted in an increased return to you. If, as 1 forecast at last annual meeting, we had been free to supjiiy the ojien market you would have benefited to the extent ol between two to three jience jier lb butter-fat more than you received. You would be justified" in expecting a better jiay-out considering the fact that after a slump experienced during the 1929-34 period the cycle of prices was on tho ujiward turn. Due, however, to the jxnicy of the jiresent administration, the small cheese company is finding it very difficult to manufacture economically. “The industry is staggering under a load of exjienses brought about through shorter hours and overtime restrictions. This increased exjienditure is making the lot of the dairy comjjanv more and more difficult and the condition of the dairy farmer harder, a iiosition of affairs which is resulting in many farmers relinquishing dairying. “In reviewing some items of expenditure, I wish to jioint out some details. For instance, the costs to f.o.b. have risen from 3.15 to 3.61 per lb butter-fat—an alarming increase brought about by extra labour costs and higher cost of materials. Then wages costs are more by £7l 10s lid comjia-ed with last balancesheet, which moreover included both wages and salaries. Adding the two you will see £755 12s 4d for wages and salaries against £586 5s 9d, an increase of £179 6s 7d. Alnterials show an increase of £152 14s Id. storage and wharfage an increase of £3O 12s 6d. Such increases in expenditure are beyond the control of your directors. These items are the prineijial items of exjienditure to which is due the extra cost of nearly a *to f.o.b. The items of exjienditure showing slight decrease are; Fuel and power, £35 os Id ; maintenance and repairs. £35 los sd; Dair.v Board less than half, namely £ls 11s 6s. QUALITY SHOYVS lAIPROVEAIENT. “With regard to the milk received for manufacture, the yield has increased slightly and I must say the quality has shown a, little improvement;' also we show some increase in outjiut over last season. “Your directors have been keeping a close watch over your interests by endeavouring to maintain the factory and jilant in an efficient working condition. In doing so we have had to re-brick the boiler, a move intended to cut down fuel, expenses considerably. Also we have had the separator re-tinr.ed and the bowl balanced with the view to closer skimming. NOTE OF WAR-TING.

“The past season, like the one before that, has been an exceptional one for a luscious growth of feed and it may he opportune, in view of that, t ( . sound .a note of warning—to provide for the coming season with fodder crops. “I would now like to suggest that you endeavour to increase your milk supplies. This would make uj> for the loss .of my supply through my relinquishing dairying, a move which, unfortunately, I was compelled to take through failing health and labour uncertainty. After having, since the inception of the company, the honour of your confidence first as director and later as chairman, when I leave the chair to-day 1 want to .ask you to continue to supjiort your directors and thereby the company as a whole in the same fine sjiirit that you have always shown. I hand over to my successor .a. charge to carry on and keep the ship sailing as I a a convinced that the" elieose industry of New Zealand lias a future equalled hv that of no other country i n the world. “In concluding, I wish to thank tho directors and sujijiliers lor their

loyal sui>jx>rt and co-ojjoration throughout the years that 1 have been associated with them. “Again referring to the guaranteed jirice, you are promised a further halfpennv differential and this should held to ‘hold the cheese people together. Your attention is again directed to the quality of your milk, which means so much to you all 1 wish to thank the secretary and his staff for the unusual attention ana courtesy, both from himselt personally as well as his staff ; also the press for their attendance and pur bank manager (Mr Smyth) for his visit at our meeting.” Before the balance-sheet* was passed, the chairman jiointed out that this year it was more plain to the layman. The increase in wage cost".. 7 was alarming and although their enP ployees took all they were entitled to they had worked very well and would have been in trouble had they not accepted the extra pay. Mr Brown jiointed out that at the present time they were still abie to work their men seven days a week, being a two-vat factory. Air Taylor stated that it would cost them another £l5O this year, which Air Brown agreed was so, but said the larger companies would have to pay more in comparison. He did not want suppliers to think that the smaller factories had been penalised unduly . 9 In voicing his regret at Mr Yates retirement from office, Dir Taylor said he had been chairman for a number of years and had always given him great courtesy and consideration in whatever business they had been associated. A factory chairman had a lot to do—keeping in contact with the office and the factory, and Mr Yates had. been a conscientious chairman—-in fact an o', erconscientious chairman, having put in too much time on details that were of a minor nature. These sentiments were endorsed by Mr Brown, who said the directors had always found Mr Yates willing to help the company and the suppliers. They were sorry his health would not permit him to continue to supply tho factory and hopeil that it would improve so that one dr.v li' would be able to resume as a supplier. (Hear, hear). A motion was then passed expressing appreciation of Mr Yates’ services to the company. In thanking the meeting for same, Mr Yates traced the early days of the factory and instanced how he had realised what responsibilities tho directors had to those who made their living from the "factory. The change from what the district had once been to what it is to-day showed what the company had n ade possible. Mr Yates again appealed for further support of the company and reiterated the value of the co-opera-tive movement. He pointed out that the company was dwindling now and it seemed a judgment on him that he hi d to leave the company for no fault of his own when two years ago he had been sore about suppliers leaving. The result of the ballot for the directorate saw Messrs Allsop and Davenport returned, the chairman congratulating them on their appointment. Messrs Allsop and Davenport acknowledged the confidence expressed in them. Mr Brown added a word of praise to Mr Taylor and others of the staff for their" helpful attitude in times of trouble and attention to their work and a vote of thanks was carried with acclamation.

The company’s banker, Mr C. C. Smyth, paid a. tribute to the condition of the suppliers' farms and said he was pleased to see the company's figures were being maintained. He regretted very much that Mr Yates had been obliged to relinquish the chair after serving the factory so well for years. The speaker also commented on the outlook for the farmers and said no doubt the woolgrowers were also pleased with prospects . Before concluding the meeting the chairman thanked the suppliers for their courtesy to him and the secretary for his co-operation. Mr Taylor’s advice had always been good and hail always been at the service of the company. Mr Allsop expressed the hope that Mr Yates would soon be restored to good health and would be coming back to them. Mr Brown wondered whether it would pay them to pass a. resolution to be forwarded to the Minister asking the Government to honour their promise to pay the cheese suppliers o\er the price paid for butter and the chairman supported the pro]>osal and said that every company should follow out the same idea, a motion to this efftet being - then carried. The motion read as under: “That the Government be reminded of the promise to make effective tho differential price for butter-fat used in the manufacture of cheese, which has not been jmssible, m the circumstances prevailing, to average cheese factories and the smaller cheese factories, on which the ontimied prosperity of many districts has bet'll built up, have been it a. distinct disadvantage.”