AWATUNA DAIRYING

Taranaki Daily News, 1 September 1930, Page 10

AWATUNA DAIRYING

MEETING OF SHAREHOLDERS YEAR’S OPERATIONS REVIEWED. QUALITY Oh’ CHEESE GOOD. The 36th annual meeting of the Awatuna Dairy Company was held at To Kiri ou Saturday evening, the chairman, Mr. S. R. Farquhar, presiding over an attendance of about 50 shareholders. The chairman in moving the adoption of the report and balance-sheet said than the season could be looked upon as a successful one, there being an increase in output, while the quality of their cheese had been good. In the past they had been at a disadvantage at the Awatuna factory owing to t’ -ir inability to cope with the milk supply properly. It would have been very easy for them to have adopted schemes of rebuilding if they paid no regard to the expenditure incurred, but finance had always been their main consideration.

Regarding re-building the chairman stated that five years ago the office and store were completed in concrete and for the next year or two their efforts were taken up with the reconstruction of the Taungatara factory. The completion of this work had been a great advantage, making the manufacturing work mucheasier and more economical. It was then decided to entirely rebuild flic Awatuna factory to overcome the difficulties and losses in manufacture. This building was now completed and it contained everything necessary in the way of plant and equipment. The cost was just over £9OOO and they had a first-class - factory—one. likely to meet all requirements for 20 years. Should further space be required additional vats could be installed at very little expense, the rest of the equipment being sufficient to deal with the supply. With up-to-date plant an- 1 premises they should be able to manufacture at both factories at lower co.sts, declared the chairman. Comparing the last two years, said the chairman, they had found a great saving in working costs by having a modern factory at Taungatara, and he was sure that the cost of the Awatuna premises would be liquidated within ten years owing to savings in the handling of the product. The company ha been making progress all along and they had made adequate provision for the future. ATTENTION TO FINANCE. Referring to the balance-sheet the chairman said that although 'the output had increased the f.o.b. cost per lb had been less. A few items, however, showed a slight increase. Wages were only £6B greater, although more butter had been made and they had the extra 'work of standardising. Fuel and power showed an increase owing to the greater use of freezing for butter. There , were two items which were rather large, the export levy and grading fees, and it was questionable whether they should not obtain some rebate from the Dairy Board or sbek a lower levy. The store business had made a profit and a sum had been placed to reserve from store profits, for depreciation. Exchange had been favourable and this benefit had .also been added to reserve to be utilised in renewing the inside plant. At present no director or shareholder had any personal liability, on behalf of the company, the liabilities being entirely covered by the company’s assets. When he first became a supplier he had to sign a joint and several for £3OOO and ?• little later he was asked to sign another.

The quality of the product had been maintained and it was even better than that»of the previous year, continued the chairman. The management and staff had done tli-eiF work well, although the year had been a difficult one owing to lack of facilities at Awatuna. But in future things would be much easier and suppliers would be able to get their milk through in less time. The motion was seconded by Mr. E. A. Collins and carried.

In reply to a question as to why cartage was practically the same to Auroa as to Eltham the chairman said there had been a loss of back caYtage for other stores. The retiring directors, Messrs. S. R. Farquhar and H. AlcCarrison, were reelected unopposed. The directors’ fees and chairman’s honorarium were fixed at the same figures as last year. Air. H. A. Lennon was re-appointed auditor at the same remuneration as last year. • i SALE OF OLD MATERIAL.

“What became of the old factory?” was a question asked by a shareholder. He thought shareholders should have had the first option. The chairman said that from a portion of the material three garages had been ' built. The remainder had been sold for just over £l6O. The material was lying about for some time and none of their own suppliers made any inquiries, so they sold it to the first outsider who came along. All the suppliers knew it was for sale. In answer to a question concerning the realisation of stocks unsold at the eiid of the previous year the chairman said that these brought less than was estimated at the closing of the books. A further question was raised that perhaps unsold stocks had been valued too highly this ypar. in taking them in at 755. The chairman pointed out that 75s had been the ruling price for some time prior to the valuation but by the timestocks were sold it was possible prices might be lower, STANDARDISING PROBLEM. There were no direct -reports from the tigcnts regarding standardised or full cream cheese, said the chairman in reply to a question. Last year their grading was 3.90 per .cent, finest, 95.29 first and .81 second. Air. J. Mildenhall asked if the chairman thought standardisation was a good thing for the industry. The chairman said the export of modified cheese had done harm but the export of that product was not allowed this year. Their standardised cheese from Taungatara had realised as much as and more than their full cream cheese from Awatuna. He considered the overproduction of cheese was a large factor in the downward prices. Air. Mildenhall said he foresaw trouble and urged that in the interests, of the dairy industry high quality should be maintained. The chairman stated that the Awatuna company had always manufactured good quality cheese. Air. H. Davison expressed the opinion that standardisation was "quite, all right.” It was the abuse of it that was the trouble. “Are yon going to join the pool?” was another question. In reply the chairman gave his opinion that they should

not join. The matter had not yet come before the directors.The matter of herd-testing was allowed to lapse last year, said the chairman, owing to only a few showing any interest in a meeting called for the purpose. Mr. McDonald asked if herd-testing could not be done at Taungatara. The chairman pointed out that last year their own work kept the facilities fully occupied and they could not take other work, but if there was not to be the same amount of testing in connection with standardising this year the manager would no doubt be willing toallow the herd tester the use of the facilities. A vote of thanks was accorded the managers, staff and secretary for their good work. Referring to the opening of the new factory the chairman said that anything in the nature of an official opening was out of the question, but he considered it would be fitting to invite’ all the shareholders and their families to view the new building some afternoon and participate in afternoon tea. Air. Collins supported the suggestion and it was resolved (hat tho function be arranged and alf suppliers be invited.