RECORD PRODUCTION

Taranaki Daily News, 19 July 1929, Page 16

RECORD PRODUCTION

LEPPERTON DAIRY COMPANY THIRTY-SEVENTH ANNUAL MEETING GROWING OUTPUT FOR COMPANY. The thirty-seventh annual meeting of the Lepperton Co-operative Dairy Company -was held in the Lepperton Hall yesterday, when Mr. H .B. Lepper, chairman of directors, presided over an attendance of over 40 suppliers. The report for the year ending April 30 said that weather conditions for dairying during the season were a decided improvement on the previous season, and although more suppliers delivered whole milk for cheese making, the total butter-fat handled by the company for both butter and cheese making showed an increase of 60,7351 b.

Butter only was manufactured from May 1 to July 31, 19'23, the average payment for that period being 16.92 pence per lb of butter-fat. From 2\ugust 1, 1928, to April 30, 1929, butter and cheese were- manufactured on separate account and the average payments to date for that period were 19.08 pence to milk suppliers and 17.29 pence to cream suppliers. After writing off £250 10s for depreciation there remained a balance of £291 Is to the credit of butter account and a debit balance of £626 4s 7d to cheese account.

To date the results of the cheese market had fallen considerably short of expectations and in view of the fact that they had 2391 crates, for which thsv had not yet received the results, some being on the water and some in cool store at Moturoa awaiting shipment, it w’as not possible to forecast at that juncture bow the season Would average out, but the chairman was confident the final results would more than liquidate the present debit balance to cheese account. The sum of Bid had been advanced on 251 crates, 8d on 1026 crates and 7£d on the balance of 1114 crates.

The results of all cheese shipped up to and including the s.s. Port Hobart, covering the make up to January 14, 1929, had been taken into account in the bal-ance-sheet. In regard to butter, everything had been finalised. Four shipments comprising 395 boxes were sent forward on consignment during the earlier part of the season and realised satisfactory prices, the remainder of the season’s output being sold on short contract at prices which were considerably in excess of Consigning results.

The directors recommended a further payment to cream suppliers of eleventwentieths of a penny per lb on butterfat supplied during the period August I, 1928, to April 30, 1929, making the average payment for the year 17.77 pence, exclusive of cream cartage. This would bo- distributed at the meeting. The usual dividend of 5 per cent, on share capital would be paid when the final results of. the cheese sales were to hand. Statistics. for the year 1925-29 were submitted as follow: —

Cheese.—Quantity of milk received, 8,545,4891 b; quantity of butter-fat, 365,4511 b; average test of milk, 4.27 per cent; quantity of winy butter made, 23,3581 b; quantity of cheese made (factory weight), 951,8321 b; quantity of cheese made per lb butter-fat, 2.601 b; lbs of milk to lb cheese, 8.981 b; cost of manufacture at per lb butter-fat 2d, management .48d, charges to f.o.b. ocean steamer ,24d, depreciation .13d, total cost 2.85 d.

Butter. —Quantity of cream received, 323,0141 b; quantity of butter-fat, 126,5531 b; average test of cream, 39.11 per cent.; quantity of butter made, 153.434 lb; over-run, 21.28 per cent; lbs cream to lb butter, 2.101 b; cost of manufacture at per lb butter-fat for nine months (exclusive of cream cartage at -id per lb butter-fat) i.2od, management .47d, charges to f.o.b. ocean steamer .lid, depreciation .13d, total cost 1.94 d.

REVIEW BY THE CHAIRMAN. In moving the adoption of the annual report and balance-sheet the chairman congratulated the shareholders on the substantial increase in the supply of milk. In connection with the manufacture of butter a decrease iu butter-fat production of 91,2941 b was shown, but in whole milk supply there was an increase of 3,459,9211 b, and in the butter-fat production from the whole of the suppliers there was an increase of 60,7351 b, which was equivalent to 14 per cent. —a record for - the company. In so far as cheese making was concerned the factory plant was working practically up to its capacity during the flush of the season, but could have handled considerably more home-separ-ated cream and he was hopeful of further extensions in that direction during the coming season. To the increasing use of fertilisers and the better weather conditions was due the substantial increase in production. Market results for butter had been quite satisfactory and on several occasions the market was in a very speculative meed. They sent forward only four shipments during the early part of the season on consignment and these netted satisfactory prices. During the remainder of the season everything was sold on short contract at prices which to date were better than consignments. The average payment for the year to cream suppliers was 17.77 pence, and with the half-penny for cost of cream cartage it brought it ap to 18.27 pence f.o.b. factory. There were no share capital callsor other deductions from the above average payment. Mr. Lepper thought suppliers of a dairy factory placed far too much reliance on a comparison of the average payment of their own factory witli that of others, and if they would look a little further into the net results per cow as obtained from their own factory they would get an entirely different result. At the recent conference of the National Dairy Association a remit relative to the adoption of a standardised form of bal-ance-sheet by dairy companies, so as to enable comparison to be made between factories was lost. ' It would not lead to anywhere, as the geographical situation had a very big effect on running costs, and again the marketing policy as well as the financial arrangements influenced the pay-out. The company was now supplying a very considerable quantity of its butter output to the local market and the results had been rather better than consignments ami f.o.b. sales to London. At the beginning of the season cheese prices ruling on the Home markets were hiMi and the company was able to dispose of its ikugust-September output at lOd per lb. and for that period the average pavment to suppliers was Is 113 d per lb butter-fat. In October the market began to weaken, but as the statistical position was still very good it was

thought it would soon recover and consignments would beat f.o.b. sales at, say, 9d per lb. Anticipations had not been realised. The market gradually drifted into a doldrum and it could only be hoped that before the balance of the output was marketed there would be a steady improvement in consumption and a consequent increase in price. Advances made by London importers on the earlier shipments were high and the directors advanced to the suppliers accordingly, believing these advances against shipments would still show a surplus, whereas many of them had shown substantial debits. The reduced advance on the later shipments and the improvement in the market should more than cover the small overpayment. During the season the majority of cheese factories had waxed their cheese and had effected a saving of approximately 1| per cent, shrinkage, which naturally had a marked effect on the average payment. The directors carefully considered the matter and, after obtaining the opinions of the Loudon importers, came to the conclusion that waxing would be detrimental to the quality of the"product and consequently be reflected in the price received. Although it had not been popular with many of the London shopkeepers they had not so far been prepared to pay a premium for unwaxed cheese, and until that eventuated they would have to adopt waxing during the coming season as they could rx afford to lose so much in shrinkage. Had they waxed during the past season he felt sure they would have shown a very small debit, if any, in the profit and loss account.

Standardised and modified cheese had also been giving some cheese factories a considerable amount of attention during the past season. A considerable quantity had arrived on the London market and reports in regard to quality were quite satisfactory and there had been practically no reduction in price. They were carefully watching the matter and it was quite likely they would make standardised cheese next season.

Mr. Lepper congratulated the manager on the very efficient way. in which he had managed the factory. He had been successful in reducing the manufacturing costs of cheese from 3.14 d to 2.85 d per lb, and butter from 2.32 d to 1.94 d per lb. at the same time maintaining a very high standard of quality. WAXING OF CHEESE. The chairman said the saving of sliriiiKagc from waxing would have meant a gam of £<juz to the company, whilst standardised cneese womu na»e meant an auumonal £1522. liuuer and casein were paying out a shade better than cheese, out it would cost Xluiiu to equip the laetory tor ca»eiu. lie stressed Lne point that it tnere- was any dennite advantage to be gamed Horn waxing and from standardising the company cutiid not auord to lose it. xie would like to personally thank tiieir bank manager, Mr. Keeling, lor tue courtesy and consideration always shown the company, raying a iurtiier tribute to tue woik oi the manager lie urged suppliers to du their share by supplying to the factory milk of the very ucot quality. Mr. L. a ones for two jears in succession had won the Dominion Cup and had just missed winning it outngnt last year by half a point, lie had also done remarkably well at grading competitions, lie spoke in high terms oi the work of the assistants, ulcssrs. lioss (butter maker; and McAsey (cneese; and ol tiie secretary (Mr. E. W. Garner;. He then moved the adoption oi the report and bal-ance-sheet. Mr. W. J. Mciv.ee seconded.

In reply to Mr. McKee the manager said the suppliers had been doing their snare by sending a fairly good quality of cream. Ninety-five per cent, oi the cream was finest, 3 per cent, nrst grade and 2 per cent, second. Bearing out those figures lie added that 95 per cent, of the butter graded finest. Some discussion took place over the cartages, members expressing surprise that the company was paying more for the cartage of its produce to Moturoa than were companies situated at a much greater distance down the coast. It was thought by some suppliers that there was a possibility of the cream suppliers gaining a slight advantage at the expense of the cheese suppliers. The opinion was generally expressed that the carriers for the company were doing splendid worn A resolution that the company call separate fresn tenders was declared carried on the voices, but on a show of hands was found to be lost by 25 to 9. After a little further discussion the report and balance-sheet were adopted. ELECTION OF DIRECTORS. For the three vacancies on the directorate caused by the retirement of Messrs. W. D. Cartwright, P. A. Openshaw and R. Ritchie there were seven nominations —the three retiring directors and Messrs. Alan Old, H. E. Biyde, H. Woisin and E. Snowball. The voting resulted in the return of Messrs. Openshaw, Biyde and Woisin. Mr. E. P. Webster was re-elected auditor. It was resolved to place on record shareholders’ appreciation of the faithful services rendered by the retiring directors, Messrs. Cartwright and Ritchie, the former having been a director for very many years. In response to a letter from the Taranaki County Council it was . resolved that the company had no objection to the closing of Smith Street.