PIHAMA DAIRY COMPANY

Taranaki Daily News, 4 August 1930, Page 15

PIHAMA DAIRY COMPANY

VERY SUCCESSFUL SEASON reduced costs for fuel, increase in production. The 33rd annual meeting of the Pihama Dairy Company was held on Saturday, about 40 shareholders being preThe directors’ report stated that once a<min the intake of milk and eream had shown a big increase. The produce was handled by two firms on consignment. The balance was sufficient to bring the average payment over the season to Is 4Jd 'Cheese on hand wad taken into stock at 6£d and this should show a good surplus when disposed of The factory statistics for Central, Skeet Road and Waiteika respectively were .—Pounds milk, 9,7'33,010, 5,730,S3O 3 901,050, total 19,354,&901b; lbs buttcr-fat, 418,117, 247,248, 153,229, total 823 595' lbs cheese, 1,015;423, 589,094, 388 759,’ total 1,993,276; lbs milk to lb cheese, 0-W, “- 03 ’’’Tff lbs cheese to lb buttei-fal, 2.4'A 2.M, 2.45 average 2.42; standardised 2.74, Z.b3 and 2.77, average 2.71; average test, 4.3, ■isi, 4.05; total average, 4.25. A total of 1’2,034 crates was graded as follows:—Central 22.43 per cent finest 77.56 per cent, first; Skeet Road 46.6 per cent, 53.39 pel' cent.; Waiteika 17.64 per cent., 82.35 per cent. Total, 28.66 per cent, finest, 71.33 per cent, first. None was graded second. In the butter department 469,7021 b of starter and whey buttcr-fat were dealt with as against 450,'5231b the previous season. The output this year was 890 tons, against 854 last year. The butter totals were: 1930, creamery butter 200 tons, whey butter 60 tons; 1929, 175 and 74 respectively. CHAIRMAN REVIEWS SEASON In moving the adoption of the report the chairman (Mr. J. D. Conaglen) congratulated the shareholders on the result of the season’s operations, although the pay-out was not as good as was expected. The pay-out was expected'to be Is 5d it the cheese in London and on the water realised favourable prices. The payment for July to November was Is 6d, from December to February Is 4d, and from March to June Is. It was proposed to put through debit notes for the July-No-vember period so as to level the payment to Is 4|d for the season. They began last season with a bright market and in September they had an offer of 8 5-Bd, but that was considered below what the market warranted. The directors believed that anything under BJd was unsuitable, but 8 5-Sd was the peak and the market kept slipping. The increase in cheese pioduction had been 36 tons and there was a substantial increase in butter, The bright feature of the balance-sheet was the° reduced cost of manufacture from 3.86 d to 3.45 d, or nearly Jd per lb. The directors had called in Mr. Berry, of Palmerston North, to deal with fuel economy, and although half the season was over before the changes were made it was pleasing to note the beneficial results over the remaining period. Mr. Berry pointed out that the boilers were too far above the fire-bars and much heat was being lost. Mr. Penwarden, Okato, had been called in to advise on the water power difficulty. Shingle had been coming down through the dam and the old turbine blades had been worn out and power was being lost. The new turbine was giving wonderful results and the manager believed that it would bo possible to run the whole factory without the use of the engine. There would probably be further economies in fuel as a result. At the Skeet Road branch alterations had been made to the firebox, but it was impossible to carry these out till the end of the,, season. As recommended by the last annual meeting milk grading was given a trial but the manager’s opinion and that of the laboratory regarding what was good milk did not always agree, and the directors abandoned the system. He believed, however. that some method of milk grading would have to be adopted. A LEADER IN QUALITY. . The factory had for many years been among the leaders in quality, continued Mr. Conaglen, but owing to the race for yield they had to join in with others and show a comparatively good pay-out. But all this was to be altered and local pools were to be formed with a premium on finest. The scheme was a good one and would encourage factories to produce quality. To bring this about managens would have to be very careful regarding the quality of the mille received and a “gentleman’s agreement” had been reached between the companies not to take any milk that had been refused by another company. The Pihama Company was unable to proceed with the scheme of farm instruction owing to other companies not participating in the scheme, but there was a possibility of a Dominion scheme being introduced. The final payment for butter last year brought the amount to Is 6 l-3d.. The payment this season was Is 2d for whey butter and Is .3|d for creamery butter. Tree-planting operations had been extended by the planting of three acres of pinus insignia. Their plantation, was now reaching the stage when the trees were available for factory use and they had received an offer by which the thinnings would be taken out without cost to the company. The bank overdraft was £3OOO in advance of last year's figure, but both accounts were now operative and credits could bo placed in either. Consequently their interest bill was lower this year. There had also been a reduction in cartage and railage per lb butter-fat. That was brought about by an agreement with the railway whereby their output was to be transported by rail for three years, this saving was about £9O per annum. The bill for crates showed an increase, due to the use of white pine battens. Pinus insignia ends were being used. Electric power costs showed a decrease owing to the big motor at the main factory not 'being, used. Stores, requisites .and wages were lower, but trade- expenses remained about the 'same. > DIRECTORS CONGRATULATED. In' seconding 'the motion Mr. J. S. Tosland said that the reason for their inability -td'-'pay a top price was that

they failed to "get in” on the sales. The directors were anxious to cell but they did not want to lose on the market price. The offer of 8 5-8 d was the top and as the market did not go higher they “missed.” When the market went below 80s they decided to hold.. There was still a lot of cheese on hand and there were prospects of a better final pay-out. It was hard for the directors to decide what was the best thing to do, but they were all anxious to obtain the best possible. They hoped yet that stocks would be cleared at a • premium. The chairman referred to .the reconstruction of the National Dairy Association and said that if they were not prepared to take up stock in the new company their liability under their promissory note might be called up. The directors were favourable to taking up stock as they realised the value of the association in obtaining supplies at reasonable rates. The butter account had been run much more cheaply than in factories where butter alone was made. Mr. J. F. Shepherd congratulated the directors on coming through the difficult year so well. He knew that they had been involved in considerable thought and worry during the past few months. He urged that cream be collected daily during the warm season. The chairman replied that the daily collection of cream was tried last year but this did not make any appreciable improvement in quality and they did not deem it advisable to double their expense by daily collections. The report was adopted. Mr. D. M. Holmes, jun., complained that the provision of hot water at the factory was unsatisfactory, half of the steam going to heat the whey. Those who did not require hot water were held up. He moved that each supplier be voted £5 to instal a water heater. For their 60 suppliers this would cost only £3OO and would be cheaper in the end. The chairnian said, they had never had a mandate f rom the annual meeting : to cut out hot water. 'Asked what it cost to produce hot water Mr. Hail, the .manager, said that the fuel expert stated that there was a considerable loss of heat along the piping. This should be lagged, the total cost being about £9O. HOT WATER TO CONTINUE. Mr. Shepherd said it would make no difference to suppliers whether they took the £5 out of their trousers pocket or their waistcoat pocket. The amount would really have to be deducted from each milk cheque so a supplier might as well' pay it himself. He amended his motion to read that they simply cut out' the supply of hot water. Mr. S. Campbell referred to the difficulties experienced by those who had no firewood. It was decided by a two to one majority to retain the supply of hot water. On Mr. J. Pettigrew’s motion it was resolved that the supply be removed from the whey tank at all factories so that other suppliers would not be hindered. The election of directors resulted in Messrs A. Allan, J. D. Conaglen and P. J. O’Sullivan being returned unopposed. Mr. H. J. Newman was reappointed auditor at the same remuneration as previously. Mr. E. M. Bardsley waited on the meeting with a request that the company support a promissory note for £l6O fo assist in financing the South Taranaki Herd-Testing Association. He said this was required only till the spring cheques came in and there was little likelihood of any liability being incurred. Mr. Tosland thought that £6O might be sufficient. If they gave too liberally it might be found that the association would spend extravagantly. If £6O were found to be insufficient the directors could consider giving further. He moved that a promissory note for £6O be given and if necessary the balanbe up to £lOO be given. This was carried. Mr. Bardsley gave a brief review of the activities of the herd-testing association. A vote of thanks was accorded the manager, the secretary and the staff. The ladies were also thanked for providing lunch and afternoon tea.