DAIRYING AT PEMBROKE

Taranaki Daily News, 12 August 1930, Page 10

DAIRYING AT PEMBROKE

COMPANY’S ANNUAL MEETING. PAYMENT SHOULD EXCEED Is 7ld. Gratification at a good financial result in a difficult year for exporting dairy companies was expressed at yesterday’s annual meeting of shareholders of the Pembroke Dairy Company. There was a large muster of suppliers over which the chairman of directors (Mr. W. McCracken) presided. • The report stated that 4609 crates of export cheese were forwarded to cool store, of which 365 were graded, finest orade, 4216 first grade, and 28 second ;grade. Sale of output from August to ■December, 2301 crates, was effected at a satisfactory figure, 2308 crates were forwarded on consignment; 2138 crates had been taken into the balance-sheet at 7d per lb. . Approximately 34 tons was sold for local consumption 'at 7fd to 9fd per lb. The manufacture of cheese on standardisation principles was commenced on November 1 and resulted in 54,1571 b. of creamery butter being made. The increase in butter-fat over the last season amounted to 52,8671 b, and the increase in cheese manufactured amounted to 47 tons 15cwt 3qr 161 b, while '45,2861b of fat was used in the manufacture of creamery butter. The average pay-out for the whole season was Is 5Jd. This included the bonus paid on July 20, 1930. ■ 'Statistics for the/ company were as follows, those for the previous year being given in parentheses: —Milk, 7.595,■4901 b (6,239,3681 b average test,. 4.21 (4.25); butter made, 33 tons (11 tons), cheese 362 tons (314| tons); gross yield, 2.53 (2.65), net-yield last season 2.95; lbs milk, to lib cheese, 9.12 (8.85) ; lbs fat manufactured into cheese, 274,8551 b (265,1431 b into butter, 45,2861 b (2131 lb); cost of manufacture,. 1.58d' per lb (l.oSd). . - In moving the adoption of the report and balance-sheet the chairman stated that the first half of the season’s output from August to December was sold at the satisfactory price of BJd per lb. The balance was consigned, but at the time of closing the books about onethird was still unsold. This was taken into account at the' conservative figure of 7d. As indicated in the report, suppliers had already received Is s£d on an average, but if unsold stocks realised the value placed upon them the payment for the season should-be easily Is 7}<L per lb. Realisation so far had been in- excess of the estimate.

Mr. MoCrac]i?n referred to the continued excellence of the company’s grading and complimented the manager (Mr. E. W. Baker) upon the high grade and upon the condition of the produce when opened in London. Standardisation was commenced on November 1. “I want to say here,” said the chairman, “that all our reports show that the quality of our standardised cheese has been equal to that of our full cream article. W'e dealt through four different firms and all their reporta were extremely favourable.” He went on to appeal to suppliers as persona directly interested in maintaining the good name of Pembroke cheese to strain every effort in supplying pure milk. Quality, he said, began first on' the farm, and without giving him good raw material, the manager could not be expected to-turn out best quality cheese. Moreover, •it had to be remembered that a little inferior milk affected a lot of cheese.

Mr. McCracken touched upon the financial position of the company; which, he said, was so . sound that the bank had agreed to cancel the joint and several guarantee. . Mr. G. Kcmtsley seconded the chairman’s motion. . .

Mr. R. A. Belcher asked for details of the item £450 shown as additions to the factory and was told that £172 was spent on account of the installation of the standardisation plant while the balance went to general equipment such as the new stage. Mr. Belcher: Should not a number of the items entered as capital expenditure have been placed to repairs and maintenance?

The secretary (Mr. W. Power) gave full details of the expenditure, showing that only items that could justly be termed capital expenditure had been placed to the capital account. At the same time, he said, shareholders had his assurance that the repairs and maintenance account had not been starved; further, that the directors had never suggested that doubtful items should be placed to capital account.' “This is a matter that 1 have been watching very closely,” said the chairman. “I have to be sure that repairs and maintenance carry only what items are legitimately chargeable.” Air. Belcher raised the question of writing down Box Company shares. He had raised the question two or three years ago and had asked that the bal-ance-sheet disclose the exact liability of the company and the amount written off from time to time. This year he noticed that the amount appearing against the shares had actually increased and he sought information. The secretary explained that £521 had been written oil this year, but the Box Company had made a fresh call. The Pembroke Company held 1554 shares and bad taken up no extra shares.

Mr. Aagaard drew attention to the small profit of £4 IM made from the sale of benzine by the company, but , was assured that the pump had been installed with the idea chiefly of giving convenience to suppliers. “In fact,” said the secretary, “the directors were emphatic that it is not desirable to make a profit from this source.” A supplier: It is not much of a convenience to the manager. He has to' operate the pump-