ALTON CO-OP., DAIRY CO.

Patea Mail, Volume XLVI, 22 August 1923, Page 3

ALTON CO-OP., DAIRY CO.

ANNUAL 'MEETING TUe fourteen lii annual meeting of the Alton Co-op. Dairy Company was held in the Alton Hall yesterday, Mr A. J. Gibbs presiding. There was a fair attendance of shareholders. The minutes of the previous annual meeting were read and confirmed. 'The annual report was read as follows; — EEPOET “Your directors have pleasure in submitting herewith the fourteenth annual report and balance-sheet. As anticipated, considerable surpluses acon the unsold ( cheese appearing in last year's balance-sheet, and your directors were able to make a final payment for 1921-22 butterfat of l/3§ per lb. At date of *his balance, 1693 crates ot cheese were still unsold, and this cheese was taken in at 7d per lb, f.o.b. The market for this produce has consiuerably improved, and a considerable surplus is expected to be thus available. Payments for the past season have been made up to 1/S per lb butterfat, from July 1 to March. 31, 1/6 for April and May, and 1/1 for Juno butterfat. The store account shows a profit of £Bl3, which is very satisfactory. It is proposed to carry this forward as a partial set-off against the loss made on this account last year. Your directors recommend that £lO be placed to a repainting reserve, and that 5 per cent, be paid on paid-up share capital. That April and May payment for butterfat be brought up to 1/S per lb, and that the balance available for distribution be paid out pro rata, on butterfat supplied from July 1 to May 31. The retiring directors arc Messrs H. Hodge and J. D. Picrcy, who retire by rotation, and arc eligible for reelection. Tou will require to appoint an auditor. Mr J. D. G. Thomson again offers his services."

The total amount of choose made during the year was 529 tons 4cwt 2qr 111 b, together with 13 tons or whej butter and 41,55Hb creamery butter.

lii speaking to the report, the chairman expressed the opinion that the ■balance-sheet was the best during the fourteen years the company had boon in existence. The past season had been even better than the previous one, which was a record. There had been 10,0001 b,, more milk received than during the prc.’ijus year, and this in spite of the fact that they had one supplier less. Had they had inis supplier the increase wouiu have been more like 25,0001 b. 'The milk that had gone from this farm had been sent to a butter factory' whore but 1/1 had been paid per lb butterfat. It was gratifying to know that the milk from this farm would conic to the factory this year, as the loss to the owner was in the neighbourhood of 6d per lb butterfat. It was gratifying to know that the average grade of cheese at the Patea Grading Works was 92.7, a most pleasing result. While the factory continued to make good cheese and butter they would always be able to command a good price for it. The manager and staff were to be heartily congratulated on the excellent results obtained. Another matter for congratulation was the fact that cost of manufacture and placing the produce f.o.b. was 3.81 d, as against d.25d for the previous year. The matter of bank exchange was not so satisfactory, as this represented a sum of nearly £BOO for the year, which was equal to about id per lb butterfat, With the money they had in hand they would pay r out for eleven months ’ butterfat 1/9 2-3 d per lb. The remaining amount of cheese unsold would enable them to pay. out 1/10 for the whole season. Mr Gibbs said, was in his opinion better by lid to 2d per lb butterfat than the payout of any factory south of Normanby. The fact that their record was so good was largely due to the fact that they had i?o butter plant, and consequently they had been compelled to make cheese at a time when it looked as if it would be better to make butter, but, as events turned out, it was far better to have made cheese. They had therefore to congratulate themselves on not having had a dual plant. So far as his experience went, there had been only one year in the whole of the fourteen years of the company’s life in which it had been more profitable to make butter. This was due to its purchase by the Imperial Government, who lost heavily over the deal. Last year's prophecy that the store would make a profit was fulfilled, some £BIO net profit having been made. WjtPjrcgard to the Dairy Control jwTWtm ight say that this had been tfined by the directors unanimously, because they were not satisfied With the mode of marketing their produce. They made the very best of dairy produce, and when it was put on the Home boat that was the last they heard of it. The directors feit that they should have some control of the produce until it reached the consumer. There had been some opposition to the Bill, but he thought this mostly emanated from those commercially interested. The very fact that sonic Chambers of Commerce wcic out against the Bill was one reason why he supported it. With regard to the coming season’s prospects, he thought they ■were distinctly good, but he did not think they should expect the same indated prices of last year. If they would view matters in a conservative light they would not be far wuong. With regard to the balance-sheet it was gratifying to find that, although 10 tons more cheese had been made, the wages bill was some £6l less than

that of the previous year, and bank interest £6B Jess. Other items such as coal and .n \\eod also saowod a decrease. Depreciation during the past year had been slightly less than that of the previous year. This was due to the fact that the Taxation Department had sent them a bill for £lO for income tax on the amount written off last year over and above the amount allowed by law'.

The report and balance-sheet were then adopted. In reply to a shareholder, the chairman held out little prospect of having the bank exchange rate of 35/- per £IOO reduced, although Mr Massey was working in this direction. It was decided, on the chairman's motion, that the auditor be requested to transfer the items store reserves £668 6/3 and £125 5/5 to the appro-i priation account.

In reply to a further question, the chairman gave a brief history of the various reserves appearing in the balance-sheet. The election of directors resulted in Messrs H. Hodge and J. D. Pierey being re-elected. Mr J. D. G. Thomson was re-elected auditor, at a fee of £l2 12/-. Some discussion took place on the question of having two balance-sheets, one for the store and another for the factory, the secretary stating that it was the auditor's opinion that the assets were indivisible, and therefore one balance-sheet only could be provided. Mr Muggcridge moved that it be a recommendation to the auditor that a balance-sheet be submitted in future showing exactly whore the store stood and the,company as well. by Mr J. Gibbs and carried. In reply to a shareholder the chairman said there had not been one shilling of bad debts on the store account during the past two years. Tho usual honorarium of £SO was voted lo the chairman. Mr Muggcridge said he would move that the meeiing place on record iis high appreciation of the excellent work carried our by the manager and staff during the pad year. Seconded by Mr Hodge and carried. Mr G. li. iiiickerulge, representative of the N.Z. farmers' Union, addressed the meeting briefly on tho question of boys and girls’ agriculture chibs. One oil on hoard of the value of making two blades of grass from where one grew before, but what could they say of a little girl who grey three mangolds where her father could only grow one before. This had actually been done at Okmawu, where a little gad grow 152-J tons of mangolds to the acre, whilst her sister grew Ml tons llewT to the acre. In another case it had been shown that 66 tons of carrots could be grown where no carrots were grown before. This increased production was of great benefit to the farmer, and showed that the boys and girls' clubs were worthy ■of every support. Tho promoters of the clubs were asking the farmers of the district to render to clubs all the support they could. If each farmer gave £1 a year it would make the clubs a success. If they did not meet with the support that they deserved they would undoubtedly languish. Mr Hayes, representative of Messrs Henry Lane and Co., expressed tho pleasure it gave him to be present and meet the farmers whose produce they handled. Without boasting, he thought his was the only firm that warned tho farmers that cheese was likely to bo short, and the farmers had benefited accordingly. At the same time, other firms had advised butter being mads, with the result that they had done so to their loss. A great deal of credit was due to tho directors for the consistency they had displayed in determining to stick to consigning. Decently they had been offered 84d per lb for the cheese which they had taken in at 7d in the balance-isheet, and later the price had gone up to B|d, He warned farmers not to expect !/-■ per lb for cheese for all time.. The agents could only live by results, which had to be proved. He hoped tho company's consistency would be rewarded in the future and that his firm would have the privilege of again handling the company's produce. His firm in the future, as in the past, would do their best for the company. He thanked the chairman for the privilege accorded him of addressing the meeting. The gathering then disbursed.