DAIRY INDUSTRY.

Taranaki Daily News, 14 September 1926, Page 6

DAIRY INDUSTRY.

THE NGAIRE COMPANY. SHAREHOLDERS' ANNUAL MEETING PAST SEASON REVIEWED. (From Our Own Reporter.) Ngaere, Sept. 13. The thirty-third annual general meeting of shareholders in the Ngaere Cooperative Dairy Company was held today in the Ngaere Hall, the chairman of directors (Mr. H. C. Taylor) presiding over an attendance of :JO members. In moving the adoption of the report and balance-sheet (already published), the chairman said most of the shareholders were aware that the season had been adversely affected by a chain of circumstances. For instance, there had been the bad spring weather, which.had reduced the milk supply. Then had come the strike, and latterly the hold-up of stocks and a fall in the price of produce. If the company had sold outright a better pay-out might have been obtained, but he pointed out that very few companies had effected a tale that covered the whole season’s output and those that sold for a portion of the season had not come out much better than had their own company. Although the milk supply fell during the early part of the season it recovered wonderfully during the autumn, and the company's output exceeded that of last year by 21 tons, a record for the company. A comparison of the seasons 1925 and 1926 showed that the average pay-out over these two years was Is 81d. Very few other companies in Taranaki, or elsewhere. he contended, had been able to beat this pay-out, though some that sold outright might have come out better. Mr. Thomas sen.: They will not be able to do that any more. PREMIUM ON QUALITY. Continuing, the chairman referred to the o|>e rations of the Control Board, pointing out that payment in future would be based on three grades, first, second and superfine. For the coming eeason, the matter of quality would be of supreme importance, but there was also another factor that could not be lost sight of and that was the maintenance of a good yield. These two matters could only be attained by A voice: Feeding on turnips. The chairman: No, by supplying good, clean milk. He urged all suppliers to concentrate on cleanliness and purity, and stated that he knew of no better method of ensuring satisfaction in this respect than the installing of approved appliances for providing boiling water on the farms and flushing out the machines and utensils at least once a day. His own experience led him to believe that the modern electric heaters were most efficient. ISirning to the question of farm inspection, Mr. Taylor said he thought the group system for the employment of a farm dairy Instructor would soon become universal in adoption. However, at the last annual meeting the shareholders had seen fit to turn the proposal down. Certainly, the manager reported that the Ngaere milk supply was, as a whole, exceptionally good. Nevertheless, he hoped suppliers would use every endeavour to bring along the very best milk. He pointed out that if the company lost )d per lb because of the quality, it would mean £750 on the season's output, while, if the yield varied by five points, the sum of about £BOO would be involved. If the yield varied by ten points the amount represented was practically Id per lb. The importance of supplying good milk was, therefore, obvious. Shareholders would no doubt have noticed from reports of other companies meetings that variations of ten points in yields were not uncommon. The stocks of cheese in store and on the water had been taken in at 7|d per lb., or 84s per cwt. The directors had no guarantee that their unsold rheese would realise this figure, more especially as latest reports showed that New Zealand cheese was down to Sis or 92s per cwt. About a month ago a shipment of Ngaere cheese reached London, but the directors had no definite advice of the sale. They were, therefore, unable to give the exact amount of the pay-out. ECONOMIC WORKING OF FACTORY. Dealing with the internal working of the factory, Mr. Taylor said the charges to f.o.b. had steadily decreased until they now stood at 4.06 d per lb, including London exchange and depreciation. Factories that sold outright, he said, had no exchange to pay. and apart from these, he knew of no other, company whose manufacturing charges were so low. Last year, continued the chairman, the directors had only I’*.) unissued sharps in hand, but since then, they had brought in shares from suppliers who had left the district and also shares upon which very little had been paid up. bo that there were now SO3 unallotted shares available for new suppliers. The price paid for fully paid up shares nas only 7s Gd. Mr. Taylor referred to an item of £5Bl shown as reserve for freezing company shares, explaining that this amount was a reserve arranged in accordance with the system under which the Moturoa Works liquidated their loss on the Smart Road works by revaluing their .assets. “Although this method of finance may be unusual, it seems to have got over the difficulty in a satisfactory manner,” he said. After itemising various matters connected with the working account the chairman said the Ngaere company was now in a very excellent financial position. INCREASE IN WAGES. Wages had increased and now stood at which was a little higher than last year, due to the operation of the now award and the increased output However, the wages, based on a per ton Basra. worked out very satisfactorily at £2 18s per ton, which was one of the lowest ratios he had seen. Next year the wages would be higher. Mr. Taylor said the company had made a very satisfactory contract for carting their cheese to the works by motor-lorry. This contract would show a considerable saving over last year's arrangement of railing the produce, and moreover there was the consideration of Jcm handling and the fact, th Jr the cheese could be loaded at the factory at 7 a.m. and inside two hours couM be unloaded at the works in excellent condition. A voice: What is the saving? After consulting with his co-directora the chairman announced that the contract was for 13s fi.l per ton as against jt’l per ton (including cartage to the station) b<* rail. In other Word®, the

company would save about £2OO on the season. In conclusion, Mr. Taylor thanked his fellow directors for their support during the year and also thanked the secretary and staff for their valuable services. He particularly congratulated the manager ((Mr. Geo. Woods) on the excellent cheese he had made, and his efficient management of the factory. On top of their manager’s sound management there had been careful administration by the directors. THE DISCUSSION. Replying to Mr. N. B. Fryday, the chairman said he was satisfied the Control Board had already justified its existence, and he referred to the reduction of freights and insurance which, lie pointed out, would save the company more than would pay the board’s levy. The freight reduction was equivalent to 7-1 per cent, for the next three years, and 12J per cent, for the following year. Mr. Tecofsky asked what the stamp duty was before the Control Board took over, pointing out that he had been informed that before the board took over the duty was £15,000, and now it wns £22,500. In reply the secretary said the company paid 2s per £lOO on 30 days’ draft, and went on to refer to the influence of the rate of exchange on the stamp duty. In the past, the company had always taken the advice of their agents on the question of drafts. Mr. Fryday said he believed it was a pity that the company continued to support the National Dairy Association, whiclff he described as a fifth wheel to the industry. In reply, the chairman outlined the work of the association, stating that the subscription was only three guineas a year and that sum was well worth spending even if simply to maintain a connection with a responsible central body that could deal with vital questions of the industry. Mr. Fryday: You did not disclose the fact that.the association had a pensions board. Mr. Tecofsky considered the Control Board was too much under the influence of the Meat Board. Mr. Fryday: Yes, it is the Meat Board that got the reduction in freight. The chairman said it cut both ways, as the Control Board helped the Meat Board to bring negotiations to a successful conclusion. COST OF FUEL. Dealing with the question of fuel costs, Mr. Hedgeman reviewed the costs over a period of six years. For the first three years the cost of coal was £1731. The next three, under different management, the cost rose to £2372. He considered that about .£BOO had been spent to save about £5O. The chairman said he believed their factory had a lower fuel consumption per ton than 80 per cent, of the other companies. Shareholders had also to remember that supplies of good rata were now not available at Ngaere, and the cost of coal had gone up. The manager pointed out even though a saving had not been perhaps effected, it was claimed that a better yield had been obtained and the value of the yield more than compensated for the eost of the new chimney. In reply to Mr. Fryday, the chairman said the local committees set up during the last seamen’s strike still existed, and in the caee of a similar emergency could function at a moment’s notice. The report and balance-sheet was then adopted. ELECTION OF DIRECTORS. The two retiring directors, Messrs T. E. Coleman and H. C. Taylor, being the only nominees for the vacancies on the directorate, were declared re-elected. Mr. J. H. Thomas was re-elected auditor at the same remuneration. The directors’- fees and chairman’s honorarium were fixed at the same as for last year. “That in view of the operations of the Dairy Control Board the directors of this company be reduced in number,” was a motion,' notice of which was given by Mr. Fryday to be considered at the next annual meeting or the first general meeting to be held. After some discussion, the advisability of shareholders providing appliances for supplying boiling water on the farm, Mr. C. H. Harrison moved that the directors be instructed to discontinue providing hot water at the factory. This was carried. HEALTH OF DAIRY HERDS. Mention was made of the possibility of improving the milk supply by sanctioning the appointment of a farm dairy instructor. Mr. C. Harrison suggested that a better scheme would be for two or three companies to club together to engage the services of a competent veterinary surgeon who could also act as a farm instructor. Mr. Harrison considered that the health of their dairy herds was a matter of paramount importance to farmers and urged that his scheme should be feasible if the veterinary surgeon was allowed tp carry on a private practice as well. Mr. K. Tarrant referred to the action of the Stratford A. and I’. Association, which body went to no little pains to organise a" veterinary club, but lacked the support of the farmers. The chairman reviewed the work of the A. and P. Association, where the matter of a veterinary surgeon acting as a farm instructor had been investigated. He said the committee went into the proposal but found almost insurmountable obstacles. Mr. Redding believed a lot of the troubles and diseases encountered in an average herd were due to too rapid and too careless milking. “Where you save a few shillings in benzine and time you lose pounds in losses to your stock,” he said. The chairman said the laboratory at Hawera was available to any supplier who had reason to suspect disease in his herd. The matter was then dropped. On the recommendation of the auditor it was decided to transfer the reserve of £5Bl standing in the balancesheet to the credit of the Moturoa Freezing Company’s shares to the account of the Egrnont Box Company’s shares. Mr. P. 0. Veale, dairy scientist at Hawera, who was present by invitation, then addressed the shareholders on the lines of addresses previously given at the annual meetings of other companies. He was listened to attentively and at the dose was accorded a hearty vote of thanks.