THE DAIRYING INDUSTRY

Southland Times, Issue 19345, 10 September 1924, Page 10

THE DAIRYING INDUSTRY

ANNUAL COMPANY MEETINGS

RYAL BUSH. ANNUAL FACTORY MEETING. The annual meeting of the Ryal Bush Co-operative Dairy Factory was held in the Ryal Bush Hall on Monday evening, the Chairman of directors, Mr A. W. Clark, presiding. , REPORT. The annual report was as follows: The amount of milk received was 387,963 gallons. The milk, which, at an average test of 3.505 contained 135,9811bs of butterfat, making 372,1981bs of cheese or 166 tons, as against 170 tons last season. The quantity of milk required to make a pound of cheese was 10.437, being considerably more than last year, but the butter-fat contained in the milk was also much less. Each lb. of butter-fat made 2.731bs of cheese, being practically the same as last year. The cost of manufacture and placing f.o.b. was 1.84 per lb of cheese, as against 1.61 d last year; but the cost of the windmill, weighing machine, and painting, and considerable expense in renewing ■team and water-pipes are included in this, and will not be recurring. The season for the producer has been a disappointing one, owing to the dry weather, and the supply of milk (which showed a large increase in the early months) fell away rapidly, and the apparent, increase in the output was not realised. Marketing conditions, too, have been very irregular. The SeptemberOctober make of cheese was sold at lOd a pound, f.0.b., and eight tons of small cheese have been sold at from 9d to 104 d. The balance was consigned, and 87 tons have brought from 85/- to 88/-, with one shipment of five tons at 83/-, this lot being

reported as having arrived heated. A reserve of 100/- was placed on the consignments, with instructions to sell anything not likely to stand storing at best price obtainable, the Director of the Dairy Division in London to be consulted as to the condition of the produce. The conditions under which the cheese was stored in London have been very unsatisfactory, ordinary stores not being artificially cooled being used, and the Produce Commissioner advised that the cheese should be sold. The advances against the earlier consignments were 8d per lb., and the loss shown in the balance-sheet of £320 18/6 is the outcome of the advances not being met by the proceeds. There are seven shipments, however, totalling 65 tons, yet unsold, on which the advances were from 4d to 6d per lb., which should result in a final credit balance of about £1250, enabling a further payment of 2d per lb. butter-fat to be made to l/5j for the whole season. In addition the curing room has been built, without which the cheese could not be held on the shelves the required period, and a pasteurising plant has been installed. The Cool Stores Company has been formed, and has taken over the stores from the Bluff Harbour Board. It is the intention of the Cool Stores Company to instal cooling apparatus in the Stores. The Control Board is now in operation, and has levied l-32d on all cheese exported since February 26. The Department is considering the question of raising the minimum points for first-grade cheese from 88 to 90, and it becomes more than ever necessary for suppliers to deliver their milk to the factory in the best possible condition. Your directors recommend the payment of the usual dividend at the rate of 6 per cent, on paidup capital. The retiring directors are Messrs A. W. Clark and J. W. Allott, both of whom are eligible for re-election. Nominations for the position of directors must reach the office of the secretary seven days prior to the annual meeting. The weight of cheese made from each lb. of butter-fat’was 2.731b5. In moving the adoption of the report and balance-sheet, the Chairman said the first two months’ output had been sold at lOd, and after that it was almost impossible to make sales. The agents were only buying in small lots and any orders received were very quickly filled up. The offers would be made to-day and withdrawn tomorrow. They had sold a considerable quantity of cheese, which had realised about 88/- in London, and the reserve on the balance now stood at 95/-, which was a little above the market rates. A recommendation to delete the clause with regard to a dividend was withdrawn, and the report and balance-sheet adopted unanimously. Two directors were required and Messrs A. W. Clark, J. W. Allott and A. V. Hartley were nominated The ballot resulted in Messrs Allott and Hartley being returned. The election of auditor resulted in Hunter and Reid being re-elected for a further term. The appointment of farm dairy instructors was discussed, but on the motion of Mr J. Wilson, seconded by Mr Myron, it w’as decided not to support the scheme. Mr James Wilson proposed a vote of thanks to the Chairman and Secretary for their work during the past season. Mr J. M. Fow’ler spoke in appreciative terms of the services given the company by Mr Clark, who had devoted a lot of time to the affairs of the company. It was decided to open the factory on Thursday, September 11. THORNBURY. ANNUAL MEETING. TTiere was an attendance of 30 suppliers at the meeting held in the Thombury Public Hall, on Monday evening, Mr C. Foster, Chairman of directors, presided. ANNUAL REPORT. The report was read as follows:—Your directors desire to [dace before you their annual report and balance sheet for the year ended July 31, 1924. As you are aware the old factory was scrapped during the year and a new up-to-date one erected, which should serve the district for many years. The thanks of the directors are due to those who assisted in the change over, so that there was no occasion to close down for even a day.

Unfortunately the report in regard to the disposal of the cheese is not a favourable one. At the beginning of the season prices were high and September-October make was sold at lOd and 1.16, and the remainder consigned. Owing to the drop in prices we stopped the sale of our cheese, and other factories did the same, with the result that thousands of tons of cheese were stored in buildings which were not suitable for storing cheese for any length of time. The cheese began to deteriorate, and to save further loss we were advised to sell. Complete returns from these sales have not yet come to hand, but the cheese realised from 88s to 90s, which, will not be sufficient to cover the advance payment received. We still have, however, 1071 crates on which 4d, and 272 on which 6d has been advanced. The disposal of this on a favourable market should provide a considerable surplus. The prospects for the coming season look favourable and offers up to 8d and 13-16 d have been received for September-October make, but your directors decided to refrain from selling in the meantime. —Summary— Amount of milk received 7,102,9421bs Milk separated 24,0001bs Pounds of butter-fat .. .. 255,956.6 Pounds of cheese 6,876.43 Average test• • . • 3.61 Number of cows .. 1,362 Lbs milk to make 11b cheese 10.29 Lbs cheese from lib butter-fat 2.69

THE DISCUSSION. The Chairman moved the adoption of the report and balance sheet. Seconded by Mr C. Haywood. Mr McFarlane said the representatives should have taken better precautions to see that the cheese was better stored at Home. There had been a great loss by all the factories in this respect. Mr G. Carmichael said in view of the bad shipments of last year, the jlirectors should have accepted the offer of 8d and 13-16 d made for this year. He considered half the cheese should be sold and haif consigned. In reply to a question the Chairman said that a dividend had been paid out of last year’s surplus. Close on £l4OO had been paid off the new factory. The average payment for last year was a trifle over Is 4d. The motion for the adoption of the report and balance sheet was carried. The following were nominated as directors: Messrs G. Carmichael, A. Miller and H. J. Riddle. On a vote being taken Messrs Riddle and Miller were elected. The three candidates returned thanks. Mr Featherstone was appointed auditor. Mr McFarlane recommended that the directors obtain results of sales as soon as possible.—Seconded by Mr McCauley. OTHER MATTERS. The question of an inspector for the factory was discussed. Mr McFarlane said they had too many inspectors, and moved that no appointment be made.—Seconded by Mr Riddle and carried. The question of increasing the grade of cheese to 90, as proposed by the Government, was discussed, no action being taken. Mr McFarlane moved as a recommendation that the cheese be sold instead of being consigned, and that the directors accept the best price, before the opening of the factory.—Seconded by Mr Corkery. Mr Riddle considered the Dairy Control Board was a farce. Beyond drawing large salaries, which came out of the pocket of the dairy farmer, they had done little or nothing. He moved that the present meeting had no confidence in the Board.— Seconded by Mr Corkery and carried. It was resolved to open the factory on Monday, 15th inst.

On the motion of Mr McFarlane, a hearty vote of thanks was accorded the directors for their work during the past year. A similar vote to the chair terminated the meeting. At a meeting of directors held after the ordinary meeting Mr C. Foster was appointed Chairman. MOBTON MAINS. ANNUAL MEETING OF SHAREHOLDERS. The annual meeting of the Morton Mains dairy factory suppliers was held in the Morton Mains Hall on Monday evening, when Mr A. H. Sheat, Chairman of directors, presided over an attendance of 27 suppliers. In moving the adoption of the report (already published) and the balance-sheet, the Chairman saiji he regretted that all the cheese had not been sold, between 50 and 60 tons still being held by the Company. He hoped that the unsold portion would be disposed of at a price which would enable them to pay out 1/6 per lb. butterfat for the season. During the year they had spent £1250 on extensions and renovations to the factory. Of this amount £l5O had been written off in depreciation, while the factory was carrying £550. The balance of £550 was met by the bank advancing that amount. The factory was now up-to-date, and would not require any expenditure for some time. The report and balance-sheet were adopted. The removal of Mr E. R. Hunter from the district caused an extraordinary vacancy in the directorate, and four nominations were received for the three vacancies. The election resulted in Messrs J. C. Edie and F. McDonald being re-elected for three years, while Mr W. Cockburn was elected to take Mr Hunter’s place.

Mr H. E. Niven was re-elected auditor. The proposal to appoint farm dairy instructors was rejected. At a subsequent meeting of directors, Mr Arthur H. Sheat was re-elected chairman. OTEBAMIKA. DIRECTORS’ ANNUAL REPORT. YEARLY MEETING TO-NIGHT. At to-night’s meeting of shareholders in the Oteramika Co-operative Dairy Factory Company, the directors will submit the following annual report:— ‘Your directors have to report a considerable increase in the intake of milk, although the whole of the expansion was in the earlier part of the season, the middle and latter end being disappointing, owing to the very dry weather experienced. ‘‘The quantity of milk received was 387,729 gallons, as against 332,223 last year. The milk, at an average test of 3.73, contained 144,8071bs of butter-fat. “The quantity of milk in some cases left much to be desired, and 3320 gallons were separated and the cream sent to the butter factories except such as was required to make butter for the suppliers in the latter end of the season, when there was an insufficiency of whey butter. “The quantity of milk made into cheese was 384,412 gallons, making 370,1161b5. of cheese, or 166 tons, taking 10.381bs milk to a pound of cheese, and making (allowing 13281bs butter-fat in the separated milk) 2.581bs of cheese per lb butter-fat. “The cost of manufacturing and placing f.o.b. was 1.61 d per lb of cheese. “An average of 1/3< a lb. butter-fat has been advanced to suppliers during the season, and it is estimated that after writing £250 off property accounts, and paying the usual dividend at the rate of 6 per cent., which your directors recommend, a further payment of approximately lid will be made when account sales come to hand. “The September-October make of cheese was sold at lOd lb., f.o.b. Four ton* of small cheese were sold at from lOd to i(l|d. The March and onward make was sold at Bjd, f.o.b. and the balance, being consigned, met a very erratic market, and realised 81/- to 90/-, while two shipments are yet unsold. “The shipments of cheese from the Dominion arrived in London in such a way that the market became overstocked, and most of the factories stored large quantities in the hope of better prices ruling later on, and it has been proved that the conditions under which it was stored were not satisfactory, and the Dairy Division report that much cheese had soft crowns, more noticeable in the non-pasteurised article, the pasteurised lines standing the test much better. The holding of stocks caused the market to rise, but as soon as the cheese was released a decline set in, and values fell

“Unfortunately 130 crates of our cheese only passed second grade, although the manager and his staff made eveiy endeav-. our with, considerable expense in fuel to' turn out a first-grade article. ‘Tn view of the above circumstances and the promise that in the near future the Department, in order to raise the standard of New Zealand dairy produce, will raise the first-grade points from 88 to 90, your directors have deemed it necessary to install a pasteuriser, and have secured same from the Kennington Factory, which will cost about £230 fully installed. It may be

necessary to replace the present boiler by a larger one, which will very much reduce the annual fuel account, but it is impossible to obtain one in time for the coming season. “An option to purchase the whey has been given to Mr Jas. Munro, of Lochiel, at 9d per 100 gallons, which, if accepted, will bring in a revenue of about £l2O, and do away with the necessity for the payment of £6O a year for its removal. “The retiring directors are Messrs J. E. Day and Jas. Wilson, junr., neither of whom will offer themselves for re-election. Two directors will require to be elected, and nominations signed by two shareholders must reach the office of the secretary 14 days prior to the annual meeting. The retiring auditor, Mr G. Featherstone, is eligible for re-election. . “Shareholders will all regret that Mr Miller’s health would not permit of his remaining on as Chairman during the latter part of the year, but will be pleased to note his recovery to something like normal, and hope to see him regain a complete recovery.” —Summary.— Milk to produce 11b cheese .. 10.38 lib. butter-fat produces lbs cheese 2.58 TOKONUI. LAST YEARNS OPERATIONS. DIRECTORS’ ANNUAL REPORT. At the annual meeting of shareholders in the Tokonui Dairy Factory Company, to be held at Tokonui on Monday next, the directors will submit the following report:— “The output for the season showed a considerable increase over the previous year’s output, being over 46 tons, as against 40 tons last year. “The season, on the whole, was favourable though dry at times. Contrary to expectations the average test went down during the dry spell. “The first month’s cheese was sold for 10 l-16d. In the absence of further offers the balance was consigned; the average price has been disappointing, being from 96s to 83s. There are three small consignments yet to be sold, which we hope will bring a fair price. “The prospects for the coming season are not good; fewer suppliers and considerably less milk expected. If the points for Ist grade cheese are raised from 88 to 90 points, as is expected, the prospects for a non-pasteurising factory is not very bright, and unless the factory is better supported it will likely have to cease operations in the near future. “The retiring directors are Messrs G. Hamilton and R. Neill. Mr Neill does not seek re-eletcion. —Summary— Milk .. 1,114,1711b5. Butter-fat 37,7721bs Cheese made 104,551ibs lib cheese made from 10.65691bs milk lib butter-fat made 2.761bs cheese Average test3.39o