RECORD OUTPUT SHOWN

Taranaki Daily News, 5 August 1930, Page 13

RECORD OUTPUT SHOWN

MOA DAIRY COMPANY’S YEAR

OVER THOUSAND TONS '»!• BUI I Ul

thirty-fifth ANNUAL MFETING

record increase of over 200 tons of* butter in output, . which lias now reached over one thousand tons, was recorded at the 35th annual meeting ol: the Moa Farmers’ Co-op. Dairy Company, Ltd., at Inglewood yesterday. Mr. R. B. Sutton, chairman of directors, presided over all attendance of about 100 shareholders. ■ The directors reported the average im cash return to the suppliers would be 15.1 d. Of the surplus (£5444 Ils 9d), a payment would be made of 2d per lb. butter-fat over March, April and May. This would absorb.£369l lOd, and the balance would be paid at a later date when the final account sales lor butter for the season were received. In the early part of the season the supply was sent to the Mangorei Dairy Company during re-building operations; later additional supply was received from September to February from sup-, pliers of neighbouring cheese factories who were separating a portion of their milk supply. The Stratford Dairy Company also sent a portion of its supply during three months. As the season progressed, falling prices necessitated reclamations being made from .earlier advances and instead of reducing the monthly.rate of advance,, the'.directors considered it advisable to (idjust each month’s returns as prices were received, the result being: June Is 6d, July 16 6d, August tb November .Is sd, ‘ December and January Is Id, February ls_ lid, March to May Is.' A further 2.87 d was. payable on the last three months.- t Notwithstanding heavy charges for removal and installation of machinery aiid renewal of portions ' of plant owing to rC’buildincr opcratioM, the cofit *h. OI butter-lat showed a further decrease; Charges to f.o.b. per lb. of butter-fat amounted to 1.72 d and to f.o.b. per lb. of butter to 1.45 d. Cream cartage averaged ,38d. The total cost was 2.10 d, aaainst 2.16 d the previous year. The tonnage manufactured was 1064 tong last year 858 tons; cream supplied (12 months), 5,311,3331 b.; butter-fat 2 months), 1,991,7021b.y butter (10 months), 2,383,4321 b.; average test, 37.5; over-run (ten, months), 1.2244., The balance-sheet showed that butter sales and stock had totalled £142,689 8a 7d. The principal items ture were eream cartage £3178 4s 2d, costs of manufacture £13,565 _ 14s 3d, depreciation £698 15s. Suppliers had been paid £119,893 3s 9d, and there was £5480 18s lid balance. ' INCREASE IN PRODUCTION. The chairman congratulated the suppliers on the marked increase in production. None of that increase of 206 tons was due to extraordinary causes but came entirely .from the company s 303 or 304 suppliers. In the early part of the season while the Inglewood factory was being completed suppliers had sent 30 tons to Mangorei but later had I received 30 tons from Stratford. Such i would enable them to cope to some extent with the reduced pay-out. Mr. Sutton forecasted that during the next ten years the output would increase 50 P It was to be regretted that the total imports of fertilisers through the port of New Plymouth had decreased by 16 000 tons. All would agree that that must be reflected in the production, if not next year, certainly later. Mr. Sutton held that the only way to meet the lower prices was for the individual to increase his herd’s production. It might be pointed out that it was over-produc-tion that had caused the lower prices; he would agree that that was so but the New Zealand producer was so favourably situated that despite the high rates of wages he could produce more cheaply than his competitors. Therefore the only way was for-the New Zealand producer “to make it so hot’’ in tlic prouluctioii tliut bis coni.po* titors would find they could not com-, pete on a payable basis and would bo compelled to go out of dairy production. It was difficult to say what the percentage of saving m manufacture had been with the new factory, but Mr. Sutton thought they would find tney could economically deal with an output up to 3000 tons before reaching the peak at which economical manufacture ip their new factory would not be possible. A good deal could be done to reduce overhead costs. Instead of having a factory at every cross road they should centralise more, and by reducing overhead expenses, pay more to the suppliers. Mr. Sutton had not definitely approached any factory with regard to amalgamation. He had been informed that°he could obtain a number of eupplicrs from a neighbouring factory but he had no desire to interfere with any other concern. Later when he heard that company w&s considering re-building he had suggested it might consider an amalgamation, but lie had not been invited to discuss matters. Finally, that company had re-built. He had considered that instead of 60 or 70 suppliers undertaking a-, liability of £3OOO , jt would have been better for them to share a liability of the same amount with a company of 300 suppliers. • OFFERS FOR PRODUCE. At the beginning of the season, Mr. Suttoii said, there had been some offers but the directors, as in previous year 1 * had rejected them, as it was not their policy to accept the first offer received, though aa it happened it would have been°better so during .the past two years. They sold two small lots, one of 2001 boxes at Is 5d and 1505 boxes at Is 5Jd, but these were mere bagatelles. The directors received a shock at the way the market liad dropped, but from time to time rejected oilers as they had hoped the market would improve. They had sold some of their late butter at Is lid per pound, which was a halfpenny more than it netted when it arrived in Britain. Since the balance-sheet had been made out there had been two email sales showing a small surplus. That, Mr. should be utilised in bringing up the suggested payment over the last three mouths from 2.87 d to I 3d, and any further balance could be I placed io reserve and so reduce the lia- - I bility on the building. A rebate to come from the Taranaki Farmers’ Freezing Works would add slightly to the surplus. There were increases in the balancesheet. Mr. Sutton said, that were due to the increased ‘ production. The suppliers this year had been paid £119.811, as compared with £122,481 the previ-

ous year, so the' increased prodiietibn had nearly compensated for tfie low prices. The only item of an unusual nature on the balance-sheet was £123 ■ J&3 Id for the opening ceremony at the new factory. The year generally had been a consigning" one, Mr. Sutton added, though perhaps they would have done better had they accepted the few offers. Whereas formerly the company had adopted a selling policy, it bad latterly‘adopted a consigning policy. This year, however, it had given its output to four buying agents and already had missed one small sale owing to the boat for which it was required leaving Auckland. ■ Air. Lee .'asked whether it had been found necessary to stand down any of the employees "for the winter. The chairman said the men bad not been stood down altogether Odd men had to go off and then there were the holidays to make up. The manager was not keen to swell the ranks of the unemployed. Air.' Lee suggested that instead of standing any men down for a term it would be better to- give all hands an extra week without pay whim they' took their holidays. The chairman agreed that that .was a suggestion worth following. Replying to Air. H. J. Susans, the. chairman stated that some suppliers were being paid an additional l-8d or one farthing per pound butter-fat tOeart their cream to the end of the by-' roads. One supplier only receiving a farthing carted three miles. Replying to Air. A- Uorkill, the chairman said that the expected surplus was. 1.-10 d per pound butter-fat over the season. In, the aggregate it would amount to £7OO, or £BOO, depending on thO rebate received from the Aloturoa grad-, incr, works. .He. would favour it being placed to the building reserve account.' . Air.' Corkill moved-that the surplus,; after increasing the last three months’,bonus to 3d, be placed to the building' ieserve account. Air. Lee seconded.

Air. Tuck said it was nM fair to suppliers, that . the money should he placed to reserve account so that future suppliers would get the benefit.. The chairman said it was better business to place it to. reserve. If it were paid noh-shareholding suppliers would receive their share.

Replying to a shareholder, the chairman said it would not nay to revert to the system of owning tneir own lorries. They had been informed by the authorities that their present system of cream cartage was the best in New Zealand. The motion was parried. j Replying to Air. Tuck the' chairman stated that the cream cartage contract had been let on a sliding scale—the greater the output the lower the price. The report and balance-sheet were adopted.- . ELECTION OF DIRECTORS. For the four vacancies on the directorate there were five nominations. The election resulted: Messrs. R. B. Sutton 395, C. W. Baldwin 305, A. J, Reeve 256, V. Dravitzki 253 (elected), and H. ; J. Susans 117. The first three were retiring directors. Air. T. S. Bowler, who had been a director for many years, did not seek re-election and was accord- ; cd a vote of thanks. | Air, Nicholls was re-elected auditor, , his remuneration being increased from i 15gns. to 20gns. ■ • The chairman said it would-'be- necessary to consider the basis of allotment of shares. At* present the basis was 751 b. of butler-fat to a share, but he would give notice to move at the next meeting that the basis be increased to 1501 b. That would obviate the necessity for increasing the share capital and would make shares - available to new shareholders. The company had purchased all the shares it was permitted to purchase. Reducing the basis of allocation would enable shareholders holding too many shares to transfer. He considered that the directors should ask that all old shares be fully paid. Air. Sutton said that a lot had been heard about the quality of cheese and they were led to believe that everything was all right with butter, but there was room for improvement still. The local trade was growing and they had disposed of 30 tons on that market. Owing, however, to the competition for the trade it showed a profit of only 2J pei- cent, over the prices received for the export butter. A proposal was on foot to foi’ni a federation among the factories that supplied local butter so as to prevent such price-cutting. While they had to sell butter on the Home I market below the cost of production there was no reason why they should ■ do so in New Zealand.

Mr. Sutton- asked for an expreßsion of opinion as to the future policy of the company. They had an offer of Is 2Jd for their output to the end of September. He did not favour taking it, though he admitted that in view of the Canadian tariff they would have to take less on that market. Mr. Lee thought the offer ehould be accepted as there was a likelihood of a drop in prices. Another supplier, pointed out that agents had stated that 150 s would be available. ! ,

Mr. Yeates considered the market was at bedrock. He favoured the policy of selling part and consigning part. The general opinion was that the matter should be left- to the directors.

Replying to - Mr. Lee the chairman i&aid it was not possible to grade cream finest until after September 1.