THE WAITOITOI COMPANY

Taranaki Daily News, 25 July 1929, Page 18

THE WAITOITOI COMPANY

RECORD PRICE FOR PRODUCE.

VERY HIGH STANDARD ACHIEVED

The twenty-three suppliers of the Waitoitoi Co-op. Dairy Company had not a breath of criticism to offer when the statement of the year’s working was presented at the annual meeting yesterday. The average payment per lb. but-ter-fat totalled 22.27 d, the average test reached 4.46 per cent., and the output showed an increase of 824 tons of cheese and 4| tons of butter. Mr. J. F. Phillips presided. - - ■ The fourteenth annual repoit stated that the vear’s work had ben most successful. The price received by euppbers would be hard to beat by any dairy company in New Zealand. The output of cheese was 32 per cent, more than last year. The cheese output for the season was sold to Messrs. J. and J. Lonsdale, Ltd., at 9 3-8 d per lb. f.o. • The milk received for cheese-making totalled 6,405,1451 b., containing 282,273 lb. of butter-fat, making 749,2501 b. of cheese (factory weights). Pounds of milk per lb. cheese averaged 8.54, ratio of cheese per lb. of butter-fat was 2.65, and average test 4.46. For winter buttermakina 16,4691 b. of butter-fat were dealt with, producing 19,6441 b. of buttei, an over-run of 19.27. The cost of manufacture, overhead expenses, repairs, renewals and painting factory, and all charges to f.o.b. ocean steamer was 3.07 d per lb. of butterfat; depreciation .05d, and export .04d. After [writing off £65 for depreciation there was a credit balance of £2253 10s 3d. The directors recommended a further payment of 1 13-16 d per lb. butterfat' supplied for cheese-making, bringing the average payment to 22.27 d. The paj - ment for winter butter was Is sd. The following statistics were presented, the figures for the previous year beina aiven in parentheses: —Number of suppliers, 23 (19); milk received for cheese-making, 6,405,1451 b. (4,966,7131 b. butter-fat. 282,2731 b. (217,7451 b. but-ter-fat for butter-making, 16,4691 b. (7,5821 b. cheese made, 749,2501 b. (564,4001 b. lb. milk per lb. cheese, 8 541 b (8.791 b. lb. cheese per lb. but-ter-fat, 2.651 b. (2.591 b. average test, 4.46 per cent. (4.38 per cent.); average price per lb. butter-fat, 22.27 d (19.36 d average grade of cheese, 92.19 (92.321); cost to f.o.b. per lb. butter-fat, 3.07 d (3.54 d AN EXCELLENT RETURN. The chairman, in moving the adoption of the report and’ balance-sheet, thought that very few, if any, chairm** of directors would be able to submit to shareholders a better return than the one they had before them. The average price of 22.27 d wag an excellent one under any circumstances, but when it was considered that that pay-out was on an average test of 4.46 per cent., then it became- even more striking. It was equal to an average payment of £4 2s per thousand pounds of milk. He thought that was a payment per thousand of milk that would challenge any fr-tory in New Zealand this year. The company was very fortunate in having the offer of 9 3-8 d made to them and the prices rc. lised by factories on consignment proved that the directois did the right thing in accepting the offer. Shareholders would be pleased to note that the cost, of manufacture and putting produce f.o.b. was nearly id per lb. of butter-fat less than last year. The larger output had materially helped

to reduce overhead costs and the price of requisites had been lower than for many years. The chairman thought that the prices of cheese crates, bandage, salt, etc., were near bedrock, and the directors did not anticipate much further reduction in that direction.

At the beginning of last season the directors had installed a waxing machine and the cheese had all been waxed and sold on H per cent, shrinkage instead of the usual 21 per cent., which meant a direct gain of over £3OO on the year’s output. It was pleasing, too, to note that the output was about 40 tons of cheese in excess of the 1927-28 season, which was the company’s previous record.

Nothing in the balance-sheet or profit and loss account required any comment. Everything compared favourably with previous years. The question of standardised cheese had been before the directors, said the chairman, and they would seek all information before committing the company. The f.o.b. charge of 3.07 d included all costs for repairs, renewals, painting the factory and the residence. All the expenditure of the factory came under the f.o.b. charge. NEED FOR BETTER MILK. The manager had turned out all first grade cheese, but' the chairman thought there was room for improvement in the quality of the milk, and it was up to suppliers to do their share. The-report and balance-sheet were adopted without discussion. Messrs. Phillips and R. Mooney retired from the board of directors by rotation and the following were nominated for the vacancies: Messrs. D. Tate, E. J. Sulzberger, J. F. Phillips and R. Mooney. The ballot resulted in the election of Messrs. Phillips and Sulzberger.

Mr. A. J. Tunbridge was re-elected auditor.

Mr. Phillips expressed his pleasure at the harmony that had existed on the directorate during the season and the co-operation of the manager and staff, who had always met the directors with smiling faces. Votes of appreciation were passed of the excellent manner the directors had managed the company’s affairs during the season, of the manager and staff, and of Mr. R. Mooney, the retiring director.

A motion by Mr. A. M. Zimmerman that' £l5 be set aside each year to build up a reserve fund to meet the periodic re-painting of the factory was lost.

It had been decided, the chairman announced, to instal a new burner for the boiler. The new burner was subject to a guarantee that a reduction of 25 per cent, in fuel cost would follow the installation.

The. chairman was voted a,n honorarium of £5O and the directors the usual fee of 10s fid per meeting. Whether to consign or sell next season’s produce was left in the hands of the directors.

At a subsequent meeting of directors Mr. J. F. Phillips was re-elected chairman. IHAIA ROAD DAIRY COMPANY ANNUAL MEETING. The third annual meeting of the above company took place on Monday, Mr. John Hickey, chairman of directors, presiding. , ' The directors’ report stated that the season had again shown a big increase in the intake of milk and produce manufactured. The cheese made from August to December had been sold to Mr. A. C. Rowson at a satisfactory figure, and the balance of the season’s make was handled on consignment by Messrs. Andrew Clement and Sons, Ltd. The quality of cheese made had been excellent, and the quantity exceeded that of last season by 552 crates. Payments to suppliers had been made during the season as follows: July Is 4d, August to October Is 6d, November Is Bd, Decem-ber-January Is 6d, February to June Is 4d. A further payment would be made that day over the months of August to December, bringing payment over this period up to Is 9d, also 5 per cent, interest on shares. Further payments would be made to suppliers when account sales came to hand. CHAIRMAN’S ADDRESS. In moving the adoption of the report and balance-sheet, Mr. Hickey said a very pleasing feature was the big increase in the intake, of milk and in the cheese manufactured. A third vat was used during the season, and shareholders were to be congratulated on the development shown by the increased supply. The cream was again forwarded to Pihama to be manufactured, and the returns were satisfactory. Share capital had increased by £364 and now amounted to £1034, a very satisfactory position. Share reserve account had increased to £BB and the bank overdraft had decreased by £Bl3, leaving the company in a sound financial position. Additions to plant and machinery were the waxing plant and extra vat and extra ram at river. The waxing plant was a new venture, and the results assured them that the expense was warranted. Stores, fuel, and crates on hand showed a reduction.

The chairman said grade fees again showed an increase, also freezing and port charges and cartage, this being brought about by the big increase in produce manufactured. Salaries and wages showed an increase, due to the extra produce handled. Rent, rates and insurance were practically the same as last season, whilst interest showed a big saving. The amount paid to suppliers (£12,951) was £2173 more than last season and £5458 more than the previous season. The cost per lb but-ter-fat worked out at 3.82 d. The receipts showed an increase of £3130 and on the previous season £Ol3O, which was surely a wonderful advance. At the commencement of the season, the directors decided tc sell the cheese made to the end of December, ami were fortunate in securing Old from Mr. A, C. Rowsoil. The market very shortly afterwards slumped, and that sale, compared with consignment prices for the same peiiod, meant an extra £llOO for distribution to suppliers, or almost £lOO per supplier. The cheese made since has been handled by Messrs. Andrew Clement and Son on consignment. The balance as shown would pay out Is 9d over the sale period, and Is 6d- over the balance of the season, plus 5 per cent, interest on shares. As the cheese on hand was taken into stock at 8d per lb, it was very probable that, when final account sales came to hand, there would be a further payment to be made, inci easing the pay-out over the consigned period. The average payment for the season, as shown by the balance-sheet, was equal to almost Is Sd per lb butter-fat.

A final payment over the sale period was being made that day, bringing this period up to Is 9d. Further payments over the balance of the season would be made as surpluses are received. Owing to the Government regulations with regard to the skimming of starter, said the chairman, the question of standardised cheese came up during the season. The directors considered this too much of an experiment for them to embark upon, and waited to see how other| factories got on. It would appear that standardisation had come to stay, and the position would be closely watched, and if it proved a remunerative proposition the directors would take it up during the coming season. The report and balance-sheet were adopted. In reply to Mr. Stark, the secretary stated that a saving of approximately 1 per cent, shrinkage, representing about £6O, was made by waxing cheese, which was commenced in January. GENERAL. This year’s directors are the same as last year, viz.: Messrs. John Hickey, F. Carter, M. Hickey, A. Harvey and D. Mourie. Mr. 11. J. Newman was re-appointed auditor. Votes of thanks were accorded the manager, staff and secretary. At a subsequent meeting of directors Mr. John Hickey was unanimously reelected chairman. —Times. WAREA DAIRY COMPANY SEVENTH ANNUAL MEETING. SUCCESS OF CO-OPERATION. The seventh annual meeting of the Warea Co-operative Dairy Company was held yesterday afternoon, when Mr. C. Wells, chairman of directors, presided over a good attendance of suppliers. The seventh annual report showed the following statistics: —Number of suppliers, 23; milk received, 9,086,5011 b.; butter-fat received, 373,2521 b.; average test, 4.1; cheese made, factory weights, 980,2831 b.; lb. of milk to lb. of cheese, 9.27; lb. of cheese to. lb. of butter-fat, 2.62; official average grade, 91.545; cost of manufacture at per lb. butter-fat, 2.28; management, .28d; charges to f.0.b., .45d; Control Board levy, ,04<l; depreciation and repairs. and maintenance, ,21d; total cost to f.0.b., 3.26 d. The amount to credit of profit and loss account at the close of the year was £2421 3s 6d.

An additional 3d per lb. butter-fat for the months of March, April and May, and a further payment of Id per lb. butter-fat over the whole season were to be made. These payments would bring the pay-out for the season up to Is 7d per lb. butter-fat. A considerable amount of consignment cheese had yet to be sold. A very satisfactory increase in tonnage was recorded.

All would agree that the company had passed through a good season, said the chairman. The directors had not struck the high prices that were ruling for cheese at the commencement-of the season and had consigned their produce through the whole season. Mr. ‘Wells said it could not be helped that the directors had , missed the high prices ruling in the spring, as they had their produce under offer to one firm for two days, and when another offer at that price came through they were not able to accept it. From the balance-sheet it did not appear that they had received as much milk as in the" pr.vious year, but as a matter of fact there had been an increase because last year they had received a considerable quantity of milk from Cape Egmont. Indeed, from that milk 37 tons of cheese had been made.

Mr. H. Donald congratulated suppliers on having passed through a successful year. The secretary said that actually this year there had been a substantial increase in the company’s output. The balance-sheet showed economical management.

With regard to the pay-out, the secretary pointed out that there were still 1086 crates of cheese, from which it was hoped there would be a further payment to make, as it had been taken in mostly at 7d. ‘ With the market as it was there should be something further for the suppliers. He gave figures showing steady progress as well as a steady reduction "in the cost of manufacture. The retiring directors, Messrs. HDonald and G. E. Julian, were re-elected unopposed. Mr. A. J. Tunbridge vas re-elected auditor, the fee being increased to £lO 10s. The chairman was voted an honorarium of £3O.

Votes of thanks were accorded the manager (Mr. T. Fowles) and staff, the secretary (Mr. 0. B. Webster), the chairman and the Press,

Afternoon tea was served by a number of ladies including Mesdames F. Sole, H. Donald, T. C. Bredin, G. E Julian, T. Fowles and J. Meier.