DAIRYING AT MAKETAWA

Taranaki Daily News, 29 August 1930, Page 15

DAIRYING AT MAKETAWA

REVIEW OF DIFFICULT YEAR THIRTY-FIFTH ANNUAL MEETING., a INCREASED OUTPUT RECORDED. An increase of about I'o per cent, in production was recorded in the report submitted to sharenoldcrs at the tniityfiftli annual meeting of the Makctawa Dairy Company at ingle wood yesterday. Mr. J. Brown presided over an attendance of about s'l suppliers. The report showed that the quantity of butter made was 316. tons 9ewt., an increase over the previous season of 31 tons lOcwt. The total butter-fat supplied was 595,0021 b, being an increase over the previous year of 57,0421 b. The supply at the main factory was 389,789 lb including 23011 b from the Taiata factory, an increase of 44,0691 b, and at the creamery 205.2131 b, an incicase of 13.0031 b. . . , Suppliers had received advances amounting to £33,977 Is. 6d, an av.eiage I payment of 13.705 d per lb of. butter-fat ! supplied, and the estimated surplus would nay a further 1.185 d, making a total of Is 2.89 d. It was not possible to forecast what the season would average until account sales were to hand 'for all the butter shipped on consignment. Further payments would be made as funds were available. . , Suppliers for casein had received advances amounting to £3819 Is 4d, an average payment of 2.47 d per lb of but-ter-fat, and there was a final payment of £326 9s Id to come from the Casein Company. This, with the balance carried forward, would provide a further ,32d, making the total of 2?d per lb oi butter-fat in the skim milk left. Tho statistics were: Milk received, 13,691,9771 b; cream received, 39,6291 b-; butter-fat-, 595,0.021 b; butter made, 708,9271 b; lb butter io lib butter-fat, 1.1914 lb; average test, milk, 4.23 per cent.; average test, cream, 38.24 per cent..; cost to f.0.b., 1.99 d. THE CHAIRMAN'S ADDRESS. In moving the adoption of the report and balance-sheet the chairman said the past season had been a very difficult one, prices having been “up and down and all over the place/* .fortunately in the early part of the season they had sold at Is sgd. The best offer received after that was Is 2d. The directors, not anticipating such a great fall in prices, held off for Is 3d per lb but had been un-‘ able to secure that price. However, he thought they had come out much better than had been anticipated at one time,' and he could congratulate suppliers on having had a better season than any other butter factory. He did not think many cheese factories had done as well. Local sales, said Mr. Brown, had helped to tide them over a difficult season. They had not made a great deal mt of the local sales because their competitors would insist on selling at lower prices, which he did not think were warranted. While the profit had not been great it had saved them bank interest because with local sales they received the money regularly each month. He hoped that during the season they might be able to make some arrangement with competitors to put local sales on a better basis. In some cases butter sold locally had been selling for less than the product exported. The directors, however, were satisfied that they were doing good business and were taking no risk.

Regarding the prospects for the present seasoi. Mr. Brown said he was not' prepared to prophesy what would take place. At the last directors’ meeting ho had thought prices had reached bottom, but he was sorry to say that they had since dropped to 126 s or 1275. Some people thought there would shortly be a rise, but he thought they must look for lower prices. He did not wish to appear pessimistic but they had to look the facts in the face. Some said that over-production was responsible but lie did not agree with that. He held that economic conditions were responsible as potential consumers did not have the money to spend. .-They were shut out by tariff from the Australian, American and Canadian market. At the Moturoa freezing works there had been a steady increase each year, but last year there had been an increase of 73,000 boxes of butter and a decrease of 2100'0 crates of cheese. They had been urged on all sides to increase production and they had certainly done their part well. EIGHTH ON GRADING LIST. Maketawa’s average grade was eighth on the list at Moturoa, being 95.994. Ho congratulated the manager on the quality of the produce. They had always been able to obtain top market prices and had secured premiums as high as 14s per cwt. Mr. Brown said he had not heard any complaints regarding the quality of New Zealand butter but he was sorry to say that as far as cheese was concerned there was something radically wrong. That might not affect Maketawa directly but it did affect the industry. There had been a satisfactory reduction in working costs from 2.27 d to 1.99 d. Considering that they were handicapped in regard to electric power charges, having to pay 3d as against l:jd in Inglewood, he thought the cost of manufacture very reasonable and the reduction of one farthing very satisfactory. As far as he could see the final payment on butter and casein would be just over Is Cd. The increase in casein at both the factory and the creamery had been very satisfactory. Casein had been affected by the depressed market as well as other produce but indications pointed to tho return for the present year being over 2d. Casein must be a first-class article to realise a good price; there was no sale for poor quality casein. The company did a great trade in Japan and had received splendid reports as to quality. Mr. Brown said he did not know definitely what the advances during the present season would be but they would probably start with Is. During the previous season they had been rather liberal with advances and as a result at the close of the season they had to reduce the advances to 9<l in order to meet a debit balance.

The freezing works had had a very successful year and was paying to. factories a rebate of 6s 6d in the £l. Maketawa’s share of that would be £116? There was no doubt that North Taranaki had one of the finest cool stores in New Zealand and, moreover, its charges were the lowest in the Dominion. Maketawa had joined the reconstructed National Dairy Association, recognising.

that it was the buffer between them and the merchants. If they had not joined they would have had to meet the £l5O promissory note. The test had been 4.23 as against 4.18 the previous year. Despite the increased output the total received for the produce was £3373 less than in the previous year. In reply to a supplier the chairman stated that Maketawa had to take 257 shares in the National Dairy Association on which 2s would be called. There was only a limited demand for unsaltcd butter and they had to be guided largely by their agents'; The report and balance-sheet were adopted. •ELECTION OF DIRECTORS. For the vacancies on the directorate caused by the retirement of Messrs. W. Kaye and W. Corney there were four nominations. Mr. W. Corney did not seek re-election. The election resulted: Messrs. W. Kaye 28, W. H. Stephens 24 (elected), A. Morgan 19, J. 11. Dombroski 19. Mr. Officer suggested that the number of directors be reduced to five or three, but the chairman pointed out that would require notice of motion. Mr. George Pullen was re-eleeted auditor. Mr. Corney, retiring director, was accorded a vote of thanks for his many years’ services on the directorate. ' The chairman was voted the same honorarium as last year— £5O. A supplier asked whether it would be possible to secure a reduction iu the charges for electric power from the Taranaki Power Board, but the chairman did not think there was any possibility. Mr. W. A. Brown suggested that some improvement should be introduced to facilitate the work at .the receiving stage. The chairman said the directors' would probably consider preparing plans of a new factory with a view to erecting a receiving stage that would not have to be scrapped when a new building was erected. He thought, however, that the difficulty could be overcome if.the suppliers were to meet and arrange a timetable so that all .would not reach the factory at the same time. At a subsequent meeting of the directors Air. Brown was re-elected chairman and Air. W. Marshall deputy-chair-man.