ROYAL OAK FACTORY

Taranaki Daily News, 11 August 1930, Page 13

ROYAL OAK FACTORY

GREATER SUPPLY REQUIRED QUESTION OF STANDARDISING ANNUAL MEETING HELD. The 12th annual meeting of the Royal Oik Dairy Co., Ltd., was held at Omata on Saturday, Mr. F. E. Morris presiding over about 26 shareholders. In the report the following fable ol quantities and averages was given:— Milk received for cheesemaking, 4,4001501 - milk received for creamery butter 11,1481 b; total milk received, 4,411,2981 b; butter-fat for creamery butter, 5271 b; butter-fat for cheese, 180,5421 b; butter-fat separated from milk (standardised cheese account), 6592 lb; touil butter-fat received, 187,6611 b; cheese manufactured (208 tons 3 cwt); whey butter, 12,5511 b; creamery butter, BaO4lb; over-run, 19.45 per cent.; milk per lb of cheese, 9.431 b; cheese per lb ot butter-fat, 2.581 b; average test, 4.25 per cent.; cheese exported, 2770 crates (full cream 1528 crates, standardised, 1242 crates); finest grade, 1460 erates (53 per'cent.),- first grade, 1310 crates (47 per cent). Account sales were yet to be received for 1487 crates of cheese, on which the following advances had been made:— 39 crates at 8d per. lb; 209 crates at 7Ad per lb; 170 crates at 7d per. lb; and 1069 crates at GJd per lb. Stocks of cheese on hand were valued at 6Jd per The account sales were also <to be received for 180 boxes whey and creamery butter, on which the following advances had been made: —39 boxes at Is per lb; 16 boxes at lid per lb; 26 boxes at 10 per lb; 6 boxes at 9d per lb;- 93 boxes-at 6d per lb. '. . _ •The profit and loss account showed a credit balance of £1059 15s, and the directors made a further payment of per lb of butter-fat supplied over the season, which' absorbed the sum of £977 Bs. The average payment which had been made to date per lb of butter-fat supplied over the whole season was a shade over Is 4d. The cost of manufacture and expenses per lb of butter-fat were: Manufacturing expenses and costs to f.0.b., 2.74 H; management expenses, .48d; depreciation, .08d; total costs, 3.30 d per lb. The weight of butter made from each pound of butter-fat used, for the- manufacture of butter was 1.19451 b, the weight of cheese made from each lb of butter-fat being 2.581 b. MOST DIFFICULT YEAR.

The chairman, in moving the adoption of the report and balance-sheet, eaid he did so with a certain amount of pleasure as they were leaving what was probably the most difficult year in the history of the company. Their produce, in common with most other primal y products, had not realised the prices obtained the year before owing to the depressed state of the cheese and butter markets. Consequently the payment had been a much lower one. The company’s production had been sent on consignment and it was believed it had realised full market values. Small quantities had been sold locally at varying prices. The output had decreased slightly due to diverted supply. The quality had been well maintained and congratulations were due to the manager on that account. _ Standardising had been started about the first week in February and had been continued until the end of the season. Owing, however, to the low prices received for butter it could not be ascertained whether the innovation had been a paying proposition. Account sales had not been received to date on 1487 crates. It was most gratifying that manufacturing costs had decreased. However, with the supply at the same level, it would be a hard matter to reduce that cost any further. The building and plant had been overhauled. WINTER MONTHS’ PAYMENT. After some discussion it was moved as a direction to the directors that any further payment over the past season be spread over March, Aprils May and June in order to bring the payment of suppliers during those months to the level of those over the other, eight months. This, it was contended by the mover, would make it fairer for the winter supplier. If there were any surplus after this had been done, the amount would be distributed evenly between all suppliers. A shareholder congratulated the manager on the cheese he had produced but, he said, it seemed that there was something wrong somewhere as regarded the yield and the pay-out. Although the test had been the same as that of many other factories, the yield could not compare with the yields of those other factories. The payment had been- fully Id less than at practically all other factories.

“We have produced more finest cheese than any other similar factory,” concluded the speaker, “but our pay-out over the last two seasons has not equalised that of those factories producing an inferior cheese. It looks as though it would pay better to turn out more than to concentrate on quality as we have been doing.” The chairman: “I maintain that our quality policy is far and away better than one advocating increased quantity-” Asked whether it was intended to abandon standardisation, the chairman said it had first .to be proved whether it was a paying’ proposition or otherwise before a move would be made in that direction. The manager, Mr. 11. 11. Finn, said he had at first been in favour of standardisation but it seemed greed “had got the best” of some of the other factories. It might be better to revert to whole milk again “to get the bad taste out of the mouths of the consumers in Britain.”

Mr. S. Vickers said he would like to see Royal Oak, as a small factory, abandon standardisation. To drop quality for a problematical quantity was not to be considered. Managers, it appeared, had been side-tracked by scientists and the quality had slipped back. It would take years to restore the good name once held on the British markets. He moved that it be a direction to directors to revert from standardised cheese to whole-milk cheese.

The secretary stated l c had come into contact with the question of standardisation a good deal and was of the opinion that it was a success if worked on the right lines. The matter was left in the hands of the directors.

The meeting did hot regard- the’ ad-

vocated pool plan pn a very favourable ! light and that, together with the disposal of the season’s produce, was left 1 to the directors.

Mr. Vickers said Barrett Road farmera had said they. Would supply Royal Oak on-condition they were not required to become shareholders.. They would pay their share of manufacturing expenses and, -f it eould be done, pay Id per lb of butter-fat for I'orry cartage to the factory. Further milk supplies were urgently required. The oiler was left to the directors to consider. .

Supply was the company’s biggest trouble, Mr. Morris said. With more milk and steady loyalty, the factory would be kept going and the head of the company well above water. Mr. Vickers, the retiring director, who was eligible for -Te-elObtjo'n, was returned to the directorate' 'unopposed. The

board is: Messrs F. E. Morris (chairman), L, C. Hore, 11. J. Blanchett, N. Berridge and S. Vickers. Mr. J. S. S. Medley was reappointed auditor. That the London experts believed the dairy produce markets to be approaching a brighter period, was shown by an agent who addressed the meeting. He made the shareholders an offer of 98s on 12 per cent, of their cheese not yet sold and 80s on the remainder. This allowed for 12 per cent, of it to be thoroughly matured before being placed upon the market; . If the price fell above or below that allowed, adjustments could be made on next season's produce. In ’.view of the fact that the usual price had ■ been round about 77s and 795, sliareholderfl./were-’inclined to regard the offer favourably, but l 'the 'matter was lelt in the hands of the directors;