FRANKLEY ROAD FACTORY

Taranaki Daily News, 29 August 1930, Page 16

FRANKLEY ROAD FACTORY

MEETING OF SUPPLIERS POLICY OF STANDARDISATION. INCREASED SUPPLY CONTINUES An increase in the output despite a decrease of four in the number of suppliers was revealed at the thirty-third annual meeting of the Frankley Road Dairy Companv in the Hurworth Hall last night. Mr. F. Baker presided over practically a full attendance of suppliers. The report stated that the output continued to increase; cheese had incrcaned 12J tons and butter-fat 11,2001 b, approximately 4 per cent. Milk received for cheese-ma king was 6,740,6801 b, and butter-fat 290,1131 b, and cheese made 744,9701 b. Milk to lb of cheese was 9.04 lb; yield, 2.56; average test, 4.303. For butter-making, 15801 b of butter-fat produced 18651 b of butter, an over-run of 18.03 per cent. Cream containing 67691 b of butter-fat was sold, alo standardised butler-fat in May amounting to 14841 b. After writing oil’ £465 18s for depreciation the prolit'and loss account showed a credit balance of £lOBl 4s 4d. The directors recommended a further payment of L}d per lb of butter-fat supplied from December 1 to the 7 end of the cheese season. All debit balances to date on account sales had been debited to the cheese account, and as cheese afloat had been drawn at 7d and GAd, there would be a further payment when all account sales were to hand. The cost to f.0.b., including repairs and all overhead charges, was 3.21 d per lb of butter-fat. against 3.5 d the previous vear. Depreciation was ,37d and levy .Md. Statistics submitted were: —Number of suppliers, 34; milk received for cheese, 6,740,6801 b; butter-fat total, 2985521 b; cheese, 744,9701 b; average test, 4.303 per cent.; lbs milk per lib cheese, 9.04; lbs cheese per lb butter-fat, 2.5 G; average grade. 91.243 per cent.; creamery butter made, 1,5651 b; over-run, 15.03 per cent. REVIEW BY THE CHAIRMAN. In moving the adoption of the report and balance-sheet, the chairman said the season was a good one for production. At the beginning of the season the prospects were very bright and the first two shipments sold at 93s and. 91s, but after that shipment prices' 1 steadily declined until they reached 725, followed by a large number of sales at 70s to 78s for white and 82s and S6s for coFoured. At the date of balance the debit on account sales was £4GS. That had been charged against last year’s cheese and money held to meet tho debit. They had still to receive account sales for 1451 crates, against 515 crates of which 7d per lb had been advanced,, and against 936 at GJ.d per lb. Those should show a substantial credit when sold to provide for a final payment. The whole of the cheese had been consigned as the directors did not think the prices offering at the beginning of last season sufficiently attractive to make f.o.b. sales in view of the good prices then ruling on the English market. After the market’s collapse f.o.b. sale were not possible as the financial conditions in Britain put the speculator off the market. The plant account had been increased £413, made up by the purchase of a new separator £lB5, Wilton furnace £l5O and standardising plant £7B. The directors installed a standardising plant at the' end of the season so as to be prepared for the coining season, as most factories had adopted the standardising process. Referring to the profit and loss account, the chairman said the lower prices were reflected in the cheese account. Although over 12 tons more cheese had been made the cheese account was £1337 less and suppliers had to date received £2470 less iu advances than in the previous year. Y The cost of manufacture and putting cheese f.o.b. showed a very substantial decrease, being .29d per lb of butterfat less than last year. Mr. S. Ammon took exception to the item for a new separator being charged to capital account. He held that as only 5 per cent, was written off for depreciation any plant renewed should be charged to repairs and renewals, particularly as the separator had been replaced after five years. He congratulated the directors on the economical management as shown by the reduction in the fuel account. Last year he had commented on the small percentage of whey butter and was pleased to note an improvement, so that the new separator had apparently paid for itself in one year. He held that the cost of production was still too high and suggested that a committee should be set up to investigate the position. They had both steam and electric plant and he thought they should do away with the supply of hot water to suppliers and use the steam for driving their plant. That would mean a big saving to the company, as he did not think any supplier would miss the hot water after a week or two. The directors must make every endeavour to cut down costs to compensate for the reduced prices for produce. Mr. Deegan said he understood the secretary last year had advised them to leave standardising alone and lie thought they would have been wise to have left it till the present season. The chairman said it took some time to get into standardisation. There was at least a profit of Id in standardisation. Waitoitoi had made a. profit of Hd. Factories in North Taranaki had done well with standardisation where tlie test was high. In South Taranaki they had overdone it and had made modified cheese. ■ A supplier said that nt the end of the season they had been forced into standardisation by the graders reporting that the cheese was too greasy. Mr. Blennerhassett asked whether it was not a fact that the grade had been higher since standardisation had been adopted. The manager said they had not been standardising long enough io give it a fair trial. A supplier took exception to the directors introducing a rule that after four years a shareholder need not take up more shares. He said that should have been done in open, meeting. BASIS OF SHARE CAPITAL. Mr. S. Ammon asked that the minute concerning the alteration of the basis of allocation of share capital be read and on its being read he asked

where the directors obtained then power. Mr. Adlam said that tho directors had only suspended the article. Air. Barr said he could not see that tho shareholders should have to abide by the articles and the directors be able to break them. According to the articles the alteration could be made only at a special or general meeting called ft»r the purpose. Mr. Ammon said he 'would be satisfied if the directors went back and allocated the shares to the suppliers who had benefited by the alteration in accordance with the articles. He was dissatisfied with the present arrangements. He, however, did not object to the old suppliers receiving any benefit in regard to share capital, but he thought new suppliers should benefit as well. They wanted to encourage new . suppliers. He moved that the basis of allocation be allowed from 1801 b of fat to 2501 b of fat per share. It was pointed but that notice of motion would be required. Mr. Ammon accordingly gave notice to move that a special meeting be held in a fortnight's time for the purpose of increasing the share capital and altering the basis of allocation. The motion was seconded by Mr. W. J. Adlam and carried. Mr. Barr intimated that he intended to move witli a view to altering the basis of election to “one man one vote.” ELECTION OF DIRECTORS. There were four vacancies on the directorate. Three of the retiring directors, Messrs H. Crozier, C. D. Chant and P. Gilbert, were re-elected unopposed and Mr. S. Ammon was elected unopposed in place of Mr. F. J. King, who declined nomination. Mr. A. J. Tunbridge was re-elected auditor. The chairman and directors were voted the same honorarium as last year. A vote of thanks was accorded the manager (Mr. V. Baird) and staff for their economical management. Mr. L. Hill moved that the directors call a meeting of delegates of the dairy companies in Taranaki with a view to purchasing manures in bulk to enable tlie supplier to secure his supplies as cheaply as possible. A suggestion was made that the Farmers’ Union might be able to undertake the work. The motion was carried. Replying to a supplier the chairman said tlie company was joining the reconstructed N.D.A. Mr. Deegan moved that in the event of a supplier leaving the company his shares be forfeited, but it was stated that there was no power to do that. Mr. Ammon suggested that a shareholder should be given tlie option when leaving either to pay his unpaid share capital or forfeit his shares. A motion to that effect was defeated. It was decided to adopt a system of milk grading. Mr. Deegan moved that a vote be taken as to whether standardisation should be discontinued. He thought there would be a loss by standardising. The chairman thought the matter should be left in the hands of the directors. It meant a saving to the shareholders. Mr. Barr seconded the motion. A supplier pointed out that standardisation had already been commenced.

The chairman ruled the motion out of order and the meeting terminated. At a subsequent meeting of directors AH. F. Baker xvas re-elected chairman.