WAREA DAIRY COMPANY

Taranaki Daily News, 23 July 1931, Page 15

WAREA DAIRY COMPANY

INCREASE in output EFFORTS FOR BETTER QUALITY. PAYMENT PROBABLY lid PER LB. An increase of 41 tons of cheese and a, “pay-out” of lOd, with the probability of a further penny, were features of the report presented at the ninth annual meeting of the Warea Dairy Co. yesterday. Mr. C. E. Wells presided, about 20 shareholders being present. The report gave the following particulars of milk received and cheese made: Number of suppliers, 21; milk received, 10,118,4351 b.; butter-fat received,. 430.7801 b.; average test, 4.3; cheese made (factory weights), 1,122,9341 b.; lb. of milk to lb. of cheese, 9.01; lb. of cheese to lb. of butter-fat, 2.57; lb. of butter to lb. of butter-fat, 1.2098; official average grade, full cream cheese 90.966, standardised cheese 90.355; cost of manufacture ht per lb. butter-fat, ■ 2.06; management, .29d; charges to f.0.b., .46d; Control Board levy, .04d;. depreciation and repairs and inaintenance, .lid/ total cost to f.0.b., 2.98 d. The amount to credit of the profit and loss account on closing the books for. the year was £779 13s lid. A further payment of jd per lb. butterfat’over the . whole season was made at tho annpal meeting. That payment would bring the pay-out for the whole season up to lOd per lb. butter-fat. A considerable amount of consignment cheese had yet to be sold. The last of tho season’s cheese in store, amounting to 555 crates, had been sold at 6d per lb. That cheese was, taken into stock at 4jd per lb. In moving the adoption of the report and balance-sheet the chairman said that the year had been a very difficult one for th* directors. They had consigned most of their cheese but had sold 555 crates in store at 6d per lb. That cheese had been taken into the balapce-sheet at 4Jd and therefore gave them an additional payment. It was, of course, hard to say what the- market price would be in three months’ time" When the produce would reach the market. As prices were going now that seemed a very fair price. The company also had a considerable quantity on the | water yet, and the market seemed fairly'firm. 'INCREASE IN 'l6 ■ YEARS. The motion was: seconded by Mr. H. Donald, who congratulated shareholders on the'Splendid season as far as production'was concerned. During the past • 16 years there had been a steady increase in production in the district, and i, during ..the season just closed there had been an increase of 41 tons of cheese. ' In the early part of the season a. lit-, tie second grade cheese had been manufactured, but'the reports received from the agents regarding • its quality' when it reached the London market were very favourable and the prices received were as good as or better than those of other companies with which he had compared them. ’ , ' ’ ’

The secretary eaid the company had still 10061 crates of ehecee either to be sold or yet to receive advice about. He hoped that it would show a good profit a<s seven shipments had been taken into stock at prices ranging from 3jd to 4jd per pound butter-fat, and providing the market held at its present price of 6d there ehould be a good surplus. He considered indications were that the cheese market would hold up as the position had been eased owing to the number of factories that were making butter. Thefinal price should be in the vicinity of lid per pound butter-fat. The cheese iu store, 555 crates, taken into stock at 4id per pound, had been sold at Gd, giving a credit of £650. It was worthy of note that there had been an increase in production amounting to 78 tons in two years. The average test this year was 4.3, as against 4.2 last year, whilst it had taken 9.011 b. of milk to make a pound of cheese as against 9.24 the previous year. The yield was 2.57. Costs to f.o.b. were down, just about a farthing, which iu itself proved that the factory had been run economically. As the result of the reduced prices £9250 less had been advanced to suppliers than last year., Mr, H. H. Chapman said there were several contentious points in the bal- ' ance-shcet, but first ho would like to know how much whey butter had been made. The secretary: 11 tone 15cwt. It was stated that the directors had decided it was more economical to manufacture whey butter themselves than to' sell the butter-fat. COMPLAINT AT GRADING. Mr. Chapma. said the company’s grade was barely 91, as against an average grade of 91A at the Moturoa grading stores. He. thought they were the lowest grading factory on the coast, if not in North Taranaki. They could not expect to procure the ruling price for an inferior, article. Their cost to f.p.b. was also too high. A small neighbouring factory had manufactured cheese at 2".04d,. as against Warea’s 2.96 d. That meant' a - difference ■ of ,£lBOO to suppliers. The ’secretary stated'., that account Males had .shown that second grade cheese at times brought more than first grade. Mr. Chapman; An unaccountable anomaly. The chairman said that suppliers must bring better milk; that was the trouble. ’ ' - • . Mr. Chapman said a Scapegoat must be found, He was not blaming the manager, but unless the milk was all right, why did the directors get rid of the farm dairy instructor? Mr. C. S. Muir: The shareholders got rid of the instructor, not the directors. Mr. Chapman .considered the directors should have taken steps to ascertain why the grade had dropped. Mr. C. S. Revell referred to Tumours that cheese had been returned to the factory. The manager said 22 crates had been returned because in the packing the necessary half-inch of air space had not been left. Replying to Mr. Donald, the manager ■aid he could not explain the cause of the second grade cheese. He was grading 92 when suddenly the grade dropped, On inquiring at the works he found that the trouble was due to sweetness, but was told that his was by no means an isolated case. The dairy instructor had visited the factory and worked one day, but found they were “on the right track.” Mr. Donald said that at the particular time the trouble came apparently neither the manager, dairy experts nor ■dentists could tell'them where the trouble lay. Possibly the pasture had something to do with it. ELECTION OF DIRECTORS. . For the election of two directors there were four nominations —Messrs. H. Donald, G. E. Julian (retiring directors), R- Julian and F. Pennington. The retiring directors were re-elected. Mr. A. J. Tunbridge was re-elected < auditor Mr. C. S. Muir moved that the chair- 11

man receive the same honorarium as last year ( £3O). The chairman stated that in view of the hard times through which suppliers were passing he would accept only £2O. That was acceded to and the chairman was accorded a vote of thanks.

A motion by Messrs. J. Woodward and H. Johns that it be a recommendation to the directors to consider changing the manager found no other supporters. A motion was passed increasing the capital from £5OOO to £BOOO by the creation of 300 new shares. It was stated that there were now only 319 of the old issue available and that over 400 were required to be issued at once for last season’s increased supply. Mr. Chapman suggested the position ought to be met by increasing the but-ter-fat basis per share, but it was. pointed out that that had been considered.

A special meeting was held for the purpose of considering altering the articles of association relative to the voting basis. The present voting basis provided for one vote up to 10 shares, two votes up to 20 shares, and one vote for each additional 20 shares up to 100 shares, giving a maximum of six votes. The alteration proposed that “on a show of hands every bopa fide supplier present shall have one vote, and ypon a poll he shall have one vote for every 10 shares held-by him up. to 100 shares;he shall have an additional vote for every 20 shares beyond the first 100 shares up to 200 shares, and an additional vote for every 50. shares beyond the first 200 shares.”

Mr. Donald said the directors thought the present voting power was very unfair, and they would like to see it made more equitable. There was no likelihood of the small supplier being outvoted as the trend was for subdivision and an increase in the number of small suppliers. He also considered it was very unfair that interest was not paid on share capital. Mr. Geo. Julian seconded the motion. Mr. Chapman strongly opposed the proposal to alter the voting basis and to pay interest on share capital. Mr. Muir said the matter of voting power was thoroughly fought out when’ the company was formed. The motion was lost by 9 votes to 8.

After the meeting those present were entertained at afternoon tea by Mesdames C. E. Wells, F. G. Sole, G. E. Julian, H. Donald, T. Fowles, R. Julian and J. Meiers. ,

Mf - . Wells was re-elected chairman of directors.