DAIRY INDUSTRY

Southland Times, Issue 21820, 24 September 1932, Page 6

DAIRY INDUSTRY

FARMERS’ FEDERATION

annual meeting of SHAREHOLDERS A DIFFICULT YEAR The tenth annual meeting of the Farmers’ Dairy Federation Ltd. was held in Everybody’s yesterday. The chairman of directors, Mr John Fisher, presided over an attendance of 62 shareholders. Chairman’s Address. “The depression which the whole world was suffering from at the time of last annual meeting still hangs heavily round the nations and is still acute in our own Dominion,” said the chairman in his address. ‘Prices of all primary products have remained at an unpayable level and farmers in every land are looking to their Governments to improve international relationships so that a general increase in price levels may result. While these steps are praiseworthy and success is eminently desirable, it is becoming increasingly evident that salvation along these lines is going to be too slow in arriving to save the majority of us from disaster.

“Hard and cruel as the experience is proving, we are all becoming painfully aware that redemption lies in individual sacrifice and individual effort, and that an improvement in price levels will the more quickly manifest itself in our adopting more efficient and economical practices within our own sphere of work. In connection with our own company we claim to have carried this practice into effect with beneficial results. In 1928 the only year comparable for output, the total cost of manufacture in this company was £29.05 per ton against the average Southland cost prior to the merger of £33 per ton. “For the year just closed the total cost covering every charge and including depreciation is £22.54 per ton, a figure never previously reached in Southland since pre-war days. At this level of cost the directors claim that on a comparative working basis no better results can be shown in the industry. There are factories showing a lower figure, but they are free from disabilities we are subject to. The federation has the most scattered source of supply of any factory of its size. Every opportunity, has been taken to effect economies while guarding efficiency. Plant has been kept in the best of order possible, wages are only £35 more and salaries are £220 less than the previous year, notwithstanding that one-third increase in manufacture has been handled. Company’s Finances. “The company’s finances are in a sound position. There has been a decrease in the amount owing to the bank on capital expenditure of £3400, the balance at close of year being £lO,llB 14/6, against £13,574 3/8 a year previous. Depreciation reserve provided for at the close of the accounts will further reduce this indebtedness to £6500. When the company’s assets are compared it will be seen that this is a very fine result. Some important additions to plant are being installed which will lead to further economies in manufacture.

“During the year the directors entered into an agreement with Mr N. H. McLeod for the extraction of solids from buttermilk and the conversion of the bulk product into a marketable commodity. This was a venture in which the dairy industry of Southland was deeply interested, and the federation was really pioneering a prospective valuabl adjunct to butterfat. Mr McLeod succeeded in producing a considerable quantity of bulk solids and is at present converting it into marketable form. The directors are not satisfied the venture is on a sound commercial basis at its present stage and do not in the meantime propose to proceed further. It does, however, offer undoubted possibilities which might be better brought to fruition by more concentrated effort in a small way till success is established. The cost, £350, the directors believe has been fully Justified in the interest of the whole industry, both butter and cheese. “The demand for additional shares in the company right throughout the year enabled the directors to place nearly the whole of the shares repurchased from' ‘dry’ shareholders with active suppliers, and the applications for further shares since the close of the financial year indicates continued confidence in the company and will absorb such ‘dry’ shares as are still available.” The chairman then formally moved the adoption of the report (already published) and balance-sheet. Mr V. A. Verity seconded the motion. Mr M. Roderique said he understood the company was not calling tenders for butter boxes. There had been a reduction of 25 per cent in wages in the sawmilling industry and with the present state of that industry he thought it would be advantageous for the company to call tenders either on the West Coast or in their own industry. Butter-boxes were a big item as far as .the company was concerned. The chairman replied that a while ago the company had taken the extreme step of importing 20,000 to 25,000 boxes and it was protected by securing them at a cheaper price. The matter would not be lost sight of by the directors. The motion was then carried. Election of Directors. Mr D. J. Heenan, the only nominee, was declared to be elected to the board of directors as the representative of the home separators. There were two nominees, Messrs J. C. Buxton and J. S. Grieve, the retiring director, for the vacancy on the board as the representative of the cooperative factories, but Mr Grieve was declared to be ineligible, as he had relinquished his connection with the Waianiwa dairy factory. Mr Buxton was therefore declared to be elected. The chairman paid a tribute to the work of Mr Grieve and expressed regret at his retirement. Mr Grieve was accorded a vote of thanks by acclamation.

Mr Grieve said he regretted allowing his nomination to go forward. Although he had resigned from the directorate of the Waianiwa factory he still held a large block of shares and thus he thought he was still eligible. It was nine years since he had become a director. He thought Mr Rutledge had been the mainstay. He had run the concern economically and thoroughly. Mr F. A. Webb was re-elected auditor.

The action of the directors in recommending the payment of no dividend and adding the amount to the bonus was approved. Mr Buxton moved and Mr J. J. H. McLean seconded a motion that the following resolution be recommended to the directors to call a special meeting for its consideration: “That the ward system of voting be adopted for home separator representatives only, and that voting for all directors, both home separator and cheese factory, be by postal ballot.” Mr Dunlop said he desired to oppose the motion. The division of the district into wards provided difficulties. He did not think the postal ballot was desirable.

Mr Tait supported Mr Dunlop. He said he could not understand why the

factories were not included in the motion.

The chairman said he was afraid that a postal voting system would kill the annual meetings. Such a move had previously been considered by the directors and put aside. Mr T. Hanning said he thought the ward system should be given a trialThe motion was carried. Mr Verity moved that in future the annual meeting should be held a month earlier. The chairman, stated that the motion could only be a recommendation to the directors. The motion was carried on a show of hands. Special Meeting. At the close of the annual meeting a special meeting was held. The following resolution was carried:—“That the Articles of Association of the Company be altered as follows; that is to say, by adding the following Articles: 20 (a) In the event of an election of directors becoming necessary at any time through more than the requisite number being nominated to fill vacancies on the Board of Directors only individual suppliers shall be entitled to vote for a candidate or candidates for election of a director or directors representing individual suppliers, and only co-operative dairy factory companies shall be entitled to Vote for a candidate or candidates for election as a director or 'directors representing such companies; 20 (b) Where it is proposed to pass a special resolution, the two meetings may be convened by one and the same notice, and .it is to be no objection to such notice that it only convenes the second meeting contingently on the resolution being passed by the requisite majority at the first meeting.” At a subsequent meeting of directors Mr Fisher was re-elected chairman.