MELLS DAIRY COMPANY

Taranaki Daily News, 5 August 1930, Page 7

MELLS DAIRY COMPANY

NO PRICE RISE ANTICIPATED. LOWER MANAGEMENT EXPENSES. A considerable saving in fuel costs, amounting to nearly *£2oo, was disclosed at°the 32nd annual meeting of the Mells Dairy Company at Mokoia yesterday, the factory manager (Mr. SJ. Tidswell) stating that the saving had been effected through the use of sawdust instead of coal as fuel. The chairman of directors, - Mr. C. J. Hawken, presided over an attendance of 14 shareholders. In moving the adoption of the report and balance-sheet (already published) the chairman stated that the prices for cheese on the Home markets had been disappointing, but there had been . a downward trend in all commodities throughout the world. The dairy industry, however, had not suffered to the same extent as some of the other industries producing primary products. “You must all have noted with considerable concern the persistent reports that our New Zealand cheese has gone back in quality,” he continued, “and it is no use denying the truth of these reports. I do not think that our own factory’s product in particular has been unfavourably commented upon, but still I am sure you will all admit there is room for improvement,.and we, in common with all the other factories, must make an earnest endeavour to send onljr the best cheese to the Home markets.” The decision of the Taranaki Federation to institute a voluntary, levy and the payment of a premium on a sliding scale according to grade would, no doubt, wo a good way 'towards effecting an Tmproveinent in quality. He believed that the undue skimming of milk for. the manufacture of standardised cheese had had an effect upon the quality. The suppliers' would have to consider very seriously whether they would not revert to the full cream article. He was pleased to state that the 0-rad.inrr of the milk and the differential paymenf’according to grade had brought about an all-round improvement in thequality of the milk delivered to the factory, which he hoped would be maintained during the coming season. There was still room for improvement in some cases. The season’s cheese had again been sold on consignment, and the suppliers had again received market prices. The directors had followed their usual policy of writing off a reasonable sum lor depreciation, "and suppliers had received to date just under Is 4|d over the season. When final results of sales were to hand a further payment would .be, available, which he anticipated would bring the return up to about Is si<L ' It’ was satisfactory to note a red’lltion in the working expenses, due, no doubt, to the re-arrangement of the machinery made possible by the alteiations to the factory last year. The directors considered it would be possible still further to reduce the working expenses durimr the coming season, when the full eh’ects of the improvements to the factory should be apparent. In answer to a question the manager stated that a saving of approximately n»£2oo a year had been effected as a result of using sawdust for fuel instead of coal. Despite that fact he felt the costs could be still further reduced, said the chairman. He could foresee no rise in price on the Home market, ‘'and he did not think suppliers could expect higher prices, especially in view of the fact that everything pointed to a continued increase in production. The economic position throughout the world was very unsound, and he felt sure that all factories would’have to concentrate on making a better article and lesseni in- the costs of production. • A supplier: Won’t it cost more to produce a better quality article? The chairman: It might, but we should get more for it, for the demand would be greater. Our best New Zealand lamb is fetching Id more than any other lamb exported to England, and the quantity has increased enormously. Another supplier questioned whether expenses could be reduced and quality bettered, especially when longer workin* hours were suggested. _ “I don’t see why not,” said the chairman. “There are' many suppliers arrive exceedingly late at the factory, and that keeps the men back. If they were to reach the factory at a reasonable time the coists would be reduced. “1 think that if dairymen can’t get to the factory at 8.30 a.m. they should not be in the business,” said. Mr. 1. E. Bickford. The late arrival was a drag on other suppliers, said the chairman. One supplier suggested that- the earliest arrivals -should wait for the later ones, but that was thought a retrograde step, it being stated that for success cows must be milked at 12-houi periods. In answer' to a question as to whether anything had been gained by standardisation, the chairman stated that he could give no accurate information 1 at the present time, but he firmly thought that the factory would have to go back to full cream che.ese and make the best quality possible. A supplier expressed the opinion that it would pay in the long run' if the factory were to revert to making fu». cream cheese. He thought the suggestion a good one said the chairman, but the federation’s scientist, Mr. P. 0. Veale, was bringing down a report on the question, and if decision was deferred until then the company would know whether there was anything to be gained by it. “I think we have to take a long view of this matter,” said Mr. Bickford “England is drawing her produce from all corners of the globe and we. have o-ot to supply what she wants if we are to maintain her custom. If our quality continues to decrease- we 'will soon find ourselves without a market. The chairman, ■when the subject of pasteurisation was being discussed, expressed the opinion that pasteurisation killed something in the cheese which should remain in it. A supplier-. When wo were pasteurising our cheese was the best on the mat - ket, but it is since we have been standardising that we have received complaints 0 as to quality.

Most agents would say that when standardised cheese first went on the market it was of good quality, said Mr.Bickford, but it had since gone back.' The trouble was that the actual consumer was getting to know that New Zealand cheese was skim milk cheese. The consumer did not care whether there was 50 per cent, fat or 100 per cent, fat in it, so long as it was palatable, and that was. the kind of cheese New-Zealand had to supply—palatable. The retiring directors, Messrs. A.

Agostinelli and C. J. Hawken, were reelected. ■ ' Messrs. Lennon and Tristram were reappointed auditors. Votes of thanks were accorded the directors, the manager and staff and the secretary (Mr. A. K. Fysoq). At a subsequent meeting of directors Mr. Hawken was re-elected chairman. The auditors, Messrs. Lennon and Tristram, reported that everything in connection with the factory was in excellent order and the secretarial work up to. its usual' high standard. The foresight of the directors in building the reserves up to more than half of the paid-up capital now yielded suppliers the benefit, inasmuch as the company had been enabled , to build additions to the factory without straining the resources or adding to the capital, as so many companies had had to do. There was a considerable rise in the average test, reflected in the- increase of butter-fat, although the milk supply had gone Tlown by 140,0001 b., while the manufacturing expenses had gone down bv .45d. The company had every reason to be satisfied with the management of affairs.