DAIRY INDUSTRY

Southland Times, Issue 22113, 6 September 1933, Page 9

DAIRY INDUSTRY

WYNDHAM FACTORY COMPANY. ANNUAL MEETING. (From Oux- Correspondent.) The annual general meeting of the shareholders of the Wyndham Dairy Factory Company, Limited, was held on Friday evening, Mr F. J. Lehaney, chairman of directors, presiding over a large attendance. In moving the adoption of the report and balance-sheet (already published), the chairman said the output for the season of 560 tons constituted a new record for the company. The butter output had also shown a small increase. In dealing with the output the speaker said it was probably the worst in the history of the industry, especially as far as price was concerned. The prices realized he considered were the lowest on record. During the year the new curing room had been completed, and the erection of a new up-to-date factory was completed. The finished structure, which would be officially opened on Wednesday next, had on Thursday been opened to receive milk, when some 500 gallons had been, forward. The cost was in the vicinity of £9OOO, and considering the estimated cost of £9500, they had kept within their limit. The prospects for the immediate future were not bright, said the chairman, and in making this statement he did not wish to appear pessimistic. London stocks at present were 140,000 crates as against 50,000 last year. However, the position was difficult to arrive at, as the cool stores had been cleared earlier this year than the previous year. Values were 15/lower at present than last year, or in other words the price to-day was 5d per lb f.o.b. as against 6d last season. Meat and bacon were not so plentiful at Home, which might have an improving tendency in regard to cheese. It did not look as if there would be a large increase in values until all, or practically all, the unemployed were absorbed. They all knew that something was wrong, but the trouble was to find a remedy, which made the future difficult to forecast. If present stocks were accepted as a criterion, they were in for a lean year, but things often had a happy knack of turning out other than expected, and it was hoped it would be the case in the near future. The chairman went on to deal with freights, mentioning that the reduction of 7 per cent, was acceptable, and would mean a saving of £124,000 to the industry. Exchange was claiming a lot of attention at the present time, and some contended that it was no benefit to the farmers, but that was entirely wrong. For instance, the company had cheese shipped shortly before the rise in exchange and the secretary (Mr A. Wilson, jqn.), had secured information that the exchange was on the rise and advances on the shipment had been withheld, with the result that the company had benefited to the extent of £l2O. That plainly showed that the farmers secured the benefit of exchange on their produce. Referring to the Southland calf pool, the chairman said suppliers should support the scheme in their own interests. Milk Sig was now a Government reguand it had to be put into force with differential payments. It could scarcely be said that it had come as a surprise, for repeated warnings had been given for years. There should be I no reason for any friction between suppliers and the manager in respect to milk grading as the manager had a specified position to fulfil. If something went wrong with the supply it had to be rectified, whether it was on the farm supplying the milk or in the factory. It was the intention of the manager to grade milk every day. Dealing with marketing facilities, Mr Lehany said there was a movement on

foot to exercise some form of modified control. Exactly what the outcome Would be he could not say. Any control methods that would interrupt any of the avehues of distribution at the present time would in any probability have a disastrous effect, as the quantities of produce going forward were so large that it required as many distributing channels as possible. Touching on the question of quotas, the speaker said he did not think the British Government would break the Ottawa agreements and force quotas on; nor would its representatives agree to allow them voluntary. The World Conference had been held in June and everyone had anxiously awaited the results, but to the world at large it accomplished nothing. In conclusion, he said he was not seeking re-election, finding that it occupied too much of his time. He thanked the other members of the directorate for their cooperation, incidentally mentioning that the board had always been a happy family, and he wished them every success in the future. The secretary had proved an excellent officer. He had always carried out his duties to the satisfaction of all. The motion was seconded by Mr R. Arnott and carried. The election of three directors resulted in Messrs R. F. Winter, David Duthie and J. D. Hopkins being elected. Messrs Hunter and Reed were reappointed auditors for the ensuing term. It was resolved that no dividend be paid on capital. On the motion of Messrs Arnott and Lehany it was resolved that the following resolution be forwarded to the Minister of Agriculture: “That this meeting protest strongly against the alteration of any standing restrictions in reference to the importation of stock, from foot-and-mouth disease infested countries.” WINTON DISTRICT FACTORIES. ANNUAL MEETINGS. (From Our Correspondent.) The various dairy factories in the Winton district have now all held their annual meetings. A feature of this year’s meetings has been the excellent attendances in the majority of instances. The meetings of the Awarua and Lochiel factories have previously been published, but it was omitted to mention that the chairman of directors, Mr Alex McLeod, and Mr J. W. Irwin respectively, were re-elected at subsequent meetings of the directors. The reports of the remaining factories in the Winton group are given below. BROWNS. At the annual meeting of the Browns Dairy Factory Company Ltd., on Thursday evening,, the chairman of directors, Mr D. Watson, presided over an attendance of 40 shareholders. Prior to the commencement of the business of the evening, the chairman referred to the death of a very old and esteemed resident of the district, Mr William McGregor, who that day had crossed the Great Divide. The meeting stood for a moment in silence as a mark of respect. In reviewing the year’s activities the chairman said he hardly needed to tell suppliers that the recent season had been a poor one, and it had looked at one time as if there would be no bonus or dividend and not much of a pay-out. He hoped, however, that they were on the threshold of better times. He was pleased to say that the factory expenses per lb for cheese were less than they had been the previous year and he wished to bestow a word of praise on the manager, Mr R. Henderson, for the capable manner in which he had looked after the factory during the year. Mr Watson moved the adoption of

of the report and balance-sheet (already published) and in seconding the motion, which was carried, Mr P. Kerr said he though the directors deserved a meed of praise for the able manner in which they had managed the affairs of the factory during the difficult twelve months they had pust passed through. The retiring directors, Messrs D. Watson, W. Kerr and D. J. McGregor, being the only nominations, were reelected for a further term of three years. Mr D. Wildey was re-appoint-ed auditor. The question of the advisability of the installation of a butter-making plant was discussed at length, several suppliers expressing the opinion that the price that had been charged for whey butter was out of all proportion in comparison with the prices they received for their butterfat. The chairman explained that the factory only charged the suppliers the same price as it was being charged by the federation, and the factory did not wish to make any profit from the suppliers in this direction at all. One supplier mentioned that for the last month he had only received 6d per lb for his cream and had been charged lljd for butter purchased. The question of joining up with the district group for cheese selling purposes was discussed and Mr T. Mcßae moved that it be a recommendation to the directors that the company not join up during the coming season. Mr J. W. Cahill seconded the motion, which on being put to the meeting was lost. At a subsequent meeting of the directors Mr D. Watson was re-appointed chairman. HOKONUI. Mr Donald Mcßae presided over an attendance of 13 at the annual general meeting of shareholders of the Hokonui Co-operative Dairy Factory Company Ltd. In reviewing the season’s operations the chairman said there had been a small increase in the season’s output. Mr M. McFadzien, the former manager of the factory, had been appointed to Boggy Burn, and the directors had selected Mr G. McMillan to fill the vacancy at the commencement of the season. He had given the utmost satisfaction and had gained third prize for the whole of the Dominion in improvement in grading points during the season. Mr McMillan had now been appointed to Tisbury, and while the shareholders were sorry to lose his services, they were pleased at his promotion and wished him the best of luck. Mr Mcßae moved the adoption of the annual report and balance-sheet (already published), the motion being seconded by Mr R. Bell and carried. Messrs John Galt and Donald Mcßae were re-appointed for a further term of three years to the directorate, which comprises Messrs D. Mcßae, L. Brown, J. Galt, J. McMaster, R. J. Mcßae, W. Y. Mcßae, John Davidson and W. Sims. Mr D. Wildey was re-appointed auditor. At a subsequent meeting of directors, Mr Donald Mcßae was re-elect-ed chairman. BOGGY BURN. At the annual meeting of the Boggy Burn Co-operative Dairy Company Ltd,, the chairman of directors, Mr John Keith, occupied the chair in the presence of 30 shareholders. The chairman, in moving the adoption of the annual report and balance-sheet (previously published) said that as the suppliers would notice by the report the factory had shown a large increase in output for the season. Unfortunately as far as prices had been concerned, it had been a trying year. The directors and staff had done their best to keep down expenses, and considering that it had been necessary to buy a new vat and separator, the pay-out was quite as good as could be expect-

ed. The new manager Mr M. McFadzien, had carried out his duties faithfully and well. His grading points had been high right through the season and he had secured second prize at the Dunedin Winter Show for an entry of cheese. Mr Keith concluded by thanking his co-directors for their assistance and the suppliers for their patience in what had been a most difficult year. The motion was seconded by Mr T. McFetrich and carried. The three retiring directors, Messrs G. H. Clark, R. H. Hamilton and T. Middleton, were elected for a further term of three years. The directorate comprises Messrs J. Keith, G. H. Clark, J. W. Cowan, W. J. Cowie, R. H. Hamilton, D. McGillivray, T. Middleton, T. McFetrich and A. S. Mcßae. Mx - D. Wildey was re-appointed auditor. At a subsequent meeting of directors Mr Keith was re-elected chairman. HEDGEHOPE. Mr Archibald McKay presided over a good attendance at the annual meeting of the shareholders of the Hedgehope Dairy Factory Company Ltd. In moving the adoption of the annual report and balance-sheet the chairman referred to the fact that the year had been a better one as far as the quantity of the output was concerned. Mr McKay thanked the directors and staff for their co-operation during the season. The report and balance-sheet were adopted. The retiring directors, Messrs A. McKay, W. Rance and A. Sharp were reelected for a further term. The directorate comprises Messrs A. McKay, W. Rance, J. Sanderson, A. Sharp, W. South, A. Highsted and G. Wilson. Mr B. D. Mehaffey was re-appointed auditor. Mr McKay was re-elected chairman at a subsequent meeting of directors. ANNUAL REPORTS. MORTON MAINS. Once again an increase is shown in the output, 43 tons more cheese being made than in the previous season (states the report of the Morton Mains Dairy Factory Company). As no acceptable price was offered for the output, it was consigned throughout the season. The agents selected to handle the produce being A. J. Mills and Sons, A. Clement and Son, and A. C. Rowson. So far satisfactory prices have been returned. At balance date we had 671 crates of cheese unshipped in addition to 1343 crates afloat on which surpluses have yet to be received. London market prices ruling throughout the season have been the lowest for many years. However, the increase in the exchange rate was responsible for a better return to the company. As a partial offset to this benefit, the cost of imported manufacturing requisites had to bear the increased exchange. For the same reason freight rates were raised by approximately 13 2-3 per cent. As mentioned in last year’s report, additions to the factory were then in progress. The work was completed in time for the opening of this season’s operations and was carried out to the satisfaction of the directors. The total cost of the building and plant was £llOO and was paid out of the loan account. Progress payments to suppliers have varied considerably dxxring the season, being adjusted from time to time according to the state of the London market. The average payment of the whole season was 8d per lb butterfat. However, surpluses on consignments afloat and in store are expected to realize a considerable sum and a further payment will be made at the annual meeeting. The profit and loss account, after allowing £lOO for depreciation, shows a surplus of £387 4/-. The directors desire to draw the attention of suppliers to the fact that the Southland Calf Pool will this year collect from the gate. By selling calves to the pool, an

adequate supply of veils is assured to the New Zealand Rennet Company (of which this company is a shareholder) and the price of rennet maintained at a reasonable figure. Should the rennet company be forced to pxxrchase from overseas its supply of veils, it is reasonable to assume that rennet prices will advance. In their own interests the suppliers are urged to support the pool, it being generally admitted that a low price for rennet is of more value than a slightly higher price per head for the calves. The retiring directors are Messrs J. Edie and A. Rhind, who, being eligible, offer themselves for reelection. WAIANIWA. Following is the annual report of the Waianiwa Dairy Factory Company:— The directors regret that payments have not been on a higher scale. The average prices ruling on the London market have been the lowest for many years, consequently payments for butterfat have had to be considerably curtailed. The increased rate of exchange had to a certain extent helped to maintain a better pay-out It is pleasing to record an increase of nearly 27 tons in the output, which counteracts to a marked degree the shrinkage shown in the previous year’s tonnage. The output was disposed of as follows: September—February output was consigned through the National Mortgage and Agency Co., Ltd., and Wright Stephenson and Co; Ltd. The March—June make was sold to the National Mort- ■ gage and Agency Co. Ltd., at 41d per lb f.o.b. At balance date 325 crates were unshipped and have been taken into account at the sale price. It is expected that this produce will be shipped at an early date and this will enable a further payment to be made. The profit and loss account after providing £5O for depreciation shows a credit of £695 19/6, which will be distributed at the annual meeting. It is expected that the price per lb butterfat will reach BJd per pound. The directors have no recommendation to make regarding dividend. Dxxring the year, the company was deprived of the services of Mr James Grieve, whose untimely death was severely felt in the district. The vacancy on fixe board was filled by Mr R. Bunton. The retiring directors are Messrs W. King and J. Adams. Mr King does not seek reelection. PINE BUSH. The annual report of the Pine Bush Dairy Factory Company is as follows:— The intake of milk has been fairly well maintained, being only slightly lower than that of last season. A total of 2,083,1351 b was handled, from which 205,0111 b of cheese, equal to 91J tons, was manufactured and 42491bs whey cream produced and sold. Of a total of 1270 crates of cheese sent to the cool stores for shipment 817 crates or slightly over 64 per cent graded finest, the balance being first grade. The marketing of the cheese is a matter’ which has caused the directors a great deal of concern during the season. The make up to the middle of March was consigned owing to the lack of suitable offers for f.o.b. selling. The agents appointed were Messrs Andrew Clement and Sons, Ltd and Wright, Stephenson and Co. Ltd. The subsequent make was sold to Messrs A, J. Mills and Co., Ltd., at 5d per lb f.0.b.. The average price received for the cheese on a net f.o.b. sale basis works out at 4.795 d per lb. The return per lb butterfat to suppliers over the season is lOd per lb, and this price compares favourably with retxxrns made by other cheese factories throughout Southland. The directors regret that this return has been on such a low scale owing to the adverse market conditions, but even considerably more disastrous prices would have beep returned on the sales effected, had it not been for the action of the Government having the exchange premium

raised to 24J per cent. Taking everything into consideration the past season has probably been one of the worst in the history of the industry. Further endeavours have been made by the industry to improve the quality of the produce, due to the feeling that the question of quality is largely interwoven with that of price. The Government Dairy Division regulation, which was brought into force last season, making it compulsory that curd tests should be made of the milk of each supplier, has been followed this season by* a further regulation that there shall be a differential payment of id pex- lb butterfat between the price paid for first grade and second grade milk. As representatives of the industry in both the North and South Islands strongly support the discontinuance of the practice of waxing of cheese, it is probable that a regulation will be brought in prohibiting the waxing of cheese except undex’ special circumstances. Suppliers will shortly be faced with the question of the disposal of their calves for the incoming season. The directors strongly recommend that the Co-oper-ative Calf Pool should be supported wherever possible. It is felt that even if, at times, the price returned is a little lower than that offered by proprietary companies, the maintenance of the cooperative scheme will be to the ultimate benefit of suppliers. The factory and plant have been well maintained and are in good order for the coming season. The factoxy continues to be efficiently managed by Mr A. R. Hey and the directors desire to thank him and his staff for the very satisfactory manner in which they have discharged their duties. Owing to the lean year the directors recommend that no dividend be paid to shareholders. The retiring directors are Messrs W. S. Andrews and D. H. Dunlop, who are eligible and offer themselves for re-election. TITIROA. The annual report of the Titiroa Dairy Factory Company states: —The output of 168 tons (an increase of approximately 27 tons over the previous season) was disposed of as follows: 105 tons sold to Mr A. C. Rowson at 6d per lb f.0.b., 11 tons was sold to the National Mortgage and Agency Co., Ltd., at 5d per lb. f.0.b., and the balance was consigned through Mr A. C. Rowson. The safe to Mr Rowson provided that any fluctuation in exchange be to the factory’s account. The exchange rate rose from 81 per cent, to 24 pier cent, and this had the effect of increasing our sale prices by 15j> per cent. As a partial offset to this benefit the shipping freight was increased by approximately 13 2-3 per cent, and our manufacturing requisites which had to be imported had to bear the brunt of the increased exchange rate. However, all things considered, the company has had a most successful season both from a financial and manufacturing viewpoint. The progress payments were at the rate of 1/- per lb butterfat from September to March, and thereafter at the rate of lOd. The average grading points for the season were 91.785. The profit and loss account shows a credit of £430 17/10, to which will have to be added surpluses from consignments on 167 crates of cheese not yet sold. No allocation has yet been made to the mortgage redemption accoxmt, which now stands at £287 11/2. It is proposed to deal with the balance in profit and loss accoxmt as follows: A further payment to suppliers bringing the season’s butterfat payments up to 1/OJ, and transfer to mortgage redemption account £9O. The staff under the capable management of Mr McPhee rendered excellent service.. The buildings and plant have been well maintained and are in good order for the coming season. The retiring directors are Messrs J. Beattie, R. Brash and A. Gray, who, being eligible, offer themselves for reelection.