MAKETAWA DAIRY COMPANY.

Taranaki Daily News, 26 August 1921, Page 8

MAKETAWA DAIRY COMPANY.

TWENTY-SIXTH ANNUAL MEETINC

THE CHAIRMAN’S ADDRESS.

The twenty-sixth annual meeting of ’ the Maketawa Dairy Company was held j yesterday, when Mr. J. Brown (chair- I man of directors) presided over an attendance of about 10 suppliers. The chairman, in moving the adoption ‘ of the report and balance-sheet, said ’ that he must congratulate shareholders i on having had a record year; indeed, it I was probably a record for any butter 1 factory. This result was probably duel in a. large degree to the price paid by 1 the Imperial Government for butter. | None of the suppliers, be thought, were i expecting to get 2s od a pound for but- , ter this year, but the price was now i 'climbing up, and from the latest reports ’ of the High Commissioner that he had seen butter would bring in something like. 2s 2d for (be coming season, so that he thought another very good Reason was in front of them. Tie recall- . ed that- for the first year of the company’s existence -the pay-out for butterfat was 7d. There was a further amount to come from the equalisation fund. This had not yet been worked out, but it would probably be about J z kd. There was also another Id in addition to the 2d already received. Regarding this additional id, he pointed out that owing to not having sold its output, the Casein Company was not in a position to pay out that amount at present, but at a meeting at which he was one of the delegates, they had guaranteed to pay the whole amount by October, 19*212, or earlier if they disposed of their output, and the suppliers would receive the amoufit as soon as paid out. With regard to the present season's casein prospects, they had not been able to obtain a definite offer to purchase their casein. The Casein Company was anxious for the dairy, companies to take ' over their plant, but they were all opposed to taking over the factory at Aramoho, as it was too far away. There was a. proposal that the casein should be sent to the com pany for consignment on a semi co-op-erative basis, but this had not proved too satisfactory when tried the season before last. Tf they consigned their casein it was difficult to say what it would return them. They were assured that the company vzould only handle lactic casein, and he had received a letter from the company Avlrieh showed that this was realising .€5O per ton at I present. All costs of manufacture, charges, etc., would cost £3B 6s Jd. leaving £1 i 13s 8d to the supplier, which, would/be equal to just under Id per pound butter-fat, aud each rise of £]o would mean an additional ?d per pound butter-fat. . The nu ney would hr paid monthly. The position, he said, was better than he had expected, and he noticed that the price now on the

London market was £55, and the market was rising. He thought casein lta‘ come to stay, and he had great 'faith in it, but he did npt consider it won] ’ do any good while they had to send their casein so far away for drying purposes. The great secret was to get the curd to the drying station within tw< or three hours. There whs no demand for second grade casein. The question of receiving a good pay-out depended on whether they turned out a first-class article, and he thought they could not rely on always turning out a first-chrss article as long as they had to send their curd as far as Wanganui. They had been eousjdering the question of establishing a drying station in T'arunaki. but at the present time there was nn chance of financing it. As soon as rnoney Mecame easy, ho thought a move wool.’ be made to put up drying stations in Taranaki. Ono central drying station would not be sufficient, and lie favored the formation of one company to erect two or even three drying stations in different centres, so that the curd conic bo got to a drying slation quickly. There was a good market for first grade casein. He thought this year they would receive L’.d or l.yd. It might possibly go as high as last year, and he expressed the opinion that the Casein Company would shortly be able to dispose of last year’s output. Maketawa. ho said, was one of the few fi/ctories that had made an iu-

erea.-cd output last season, which wa? an in and out season. Their output had increased by 15 tons. The vea.r had been a- troublesome one a- * regard finance, but he pointed out that the directors liad boon able to make arrangement? with their bankers that would ena'Dle them tn pay out the /whole of the bonus at the meeting This was owing to the prudent policy they had adopted of not paying out so high in the early part of the season a other companies did. and lie intimated that the directors would adopt the same cautious policy this year in the advance, making up the amount as far as possible as they did last year prior to Christmas.' He did not sec much hope of interest being reduewl for the next twelve months, at least. He contrasted the fortunate position dairy in,.people were in as compared with wool and meat. He considered there were prospects of meaX bides and tallow improving shortly, Iml/ he could not see any prospects- for wool. Mr. Brown touched on the shipping question, remarking that there was no chance of getting a reduction until after a conference in January. There, was a good deal of talk about a Itne of vessels owned by the producers, but it was a question of finance, and if mohey was easy something would be done. The Government were willing to help, but they were as hard up as anyone else. As far as Moturoa was concerned, he said they had had a. good year, and were paying back a rebate on butter

and cheese. This concern, he said, had no overdraft, but a credit at the bank. It had been taken over 17 or 18 years'' ago by Hie dairy factories, and after the fire buildings to the value of £60,000 or £70,000 had been erected. Further, £25,000 had been put into the Smart Road works, on which 6 or S per cent, interest was payable, and moreover they had storage available for either butter or cheese if they wanted it. In this connection he pointed out that they had the promise of regular monthly shipments now, and possibly more often. The Box Company had shown a loss of £5OOO, but this was Jargoly, ; due

worked out, necessitating a large sum being written off. Mr. Brown then traversed the bal-ance-sheet, showing that the company last year had paid out £17,090 for milk and £865 for cream, whereas this year they had paid out £30,398 for milk and £151*5 .for cream. In concluding, he urged them all to supply the best material to the manager. He said that he did not favor the erection of any more creameries, unless they had a very large supply. They would be prepared to meet the Norfolk Road people and discuss the. question of cream | cartage. He urged them all to stand by the co-operative factory, which they had started 26 years ago to get away from the proprietary concerns, and unless they wore loyal they would have their work to do again. THE DISCUSSION. Mr. Dean asked if it were not possible to deal direct with the people in I England who purchased their produce, | instead of selling it through an agent. —The chairman said the ideas were not ! new, and the company had tried them ■ previously. The company could not 1 deal with little people, as they could j not afford to take any risk, while a i big concern would not give them any < ■ more than market price. The chairman /undertook to get into communication ■ with the firms mentioned. Mr. Dean considered that all the. cjjIpenses of the factory and creamery • should be pooled and each paid on the j same basis. —The chairman said that ’ there was very little difference, aud the • creamery people were well satisfied with ; the agreement made. ’ In reply to Mr. Trimble, the chair- ; man said the direptors had reserved the j right to sell if they received a good of--1 for, but if they consigned they would • consign through the same house as before the war, viz., Clements and Sons. i Up to the present they had received no i oiler. Mr. Harding asked whether it would | not pay to purchase a lorry for the i cartage of cream, and also to do the I company’s ordinary casting.—The chair- | man said that the directors had been j seriously considering the matter, but it was a question of finance. The suggestion was a good one, aud should be a payable proposition. In reply to a supplier, the chairman said that the average cost of manufacture to f.o.b. was 3.14 d per pound of butter-fat, and 2.65 d per pound of but- ■ ter, and with depreciation added 3.30 d per pound ■ i 'butter-fat and 2.84 d per : pound of butler. The butter realised , 29d per pound, and with the overrun 134.44>d per pound, realising less 3.36 d | expenses, 31.10 d per pound of butterI fat. The factory was paying out 31.08 d with the equalisation fund to follow. The report and balance-sheet wore : then adopted. | ELECTION OF DIRECTORS. | For the two vacancies on the direci torate caused by the retirement of I Messrs. D. A. Brown and W. Corney. | there were four nominations, and th. /election resulted: J. B. Johnstone 22, W. I Corner 17 (elected). D. A. Brown 13, W. | Dean‘ll. i Air. Geo. Pullen was re-elected auditor at a fee of £7 7s. GENERAL. Mr. Trimble then moved that the /directors make enquiries into the matter iof establishing a herd testing associa tion, and if necessary call a further i mooting of shareholders.—-Carried. Air. Dean considered that the by-law ire taking too much skiin milk should j be enforced. —The chairman said that if j anyone could be caught the by-law j would be enforced. A vote of thank-; was accorded the directors and staff. The ahixiiman was voted the same honorarium as last year.