DAIRYING AT LEPPERTON

Taranaki Daily News, 24 July 1931, Page 2

DAIRYING AT LEPPERTON

REVIEW OF PAST SEASON THIRTY-NINTH ANNUAL MEETING INCREASED OUTPUT SHOWN. “Only be of good courage, provide for your customers uniformly good produce of the exact quality and description which they want, stick loyally together and you will win through unsettled to better times.” This remark by Lord Bledisloe was quoted by Mr. P. A. Openshaw, acting-chairman of directors of the Lepperton Dairy Company, as a proverb at the thirty-ninth annual meeting ol suppliers to that company yesterday. In the absence of the chairman of directors (Mr. H. B. Lepper) through ill-health, Mr. Opcn.siiaw presided. ■The report and balance-sheet showed that during the past season weather conditions for dairying were again excellent, and there was an increase of 30,0811 b. in butter-fat supplied to the company. Butter only was manufactured from ,May 1, 1930, .to July 31, 1930, and during April, 1931, and from August 1, 1930, to March 31, 1931, butter and cheese were manufactured on separate account, the average payments to date being 9.85 d to milk suppliers and 10.70 d to cream suppliers. Af/er writing off £lOO for depreciation, there remained a balance of £1835 Ils 4d to the credit of the profit and loss account, of which £1543 3s lOd belonged to butter manufacture and £292 7s 6d to cheese manufacture. RESULTS OF SALES. The. results of all cheese and butter (creamery and whey) shipped up to and including the Port Fremantle covering the make for butter up to January 12, 1931, and cheese up to December 20, 1930, had been taken into account in the balance-sheet; 2099 crates of cheese, 524 boxes of creamery butter, and 71 boxes of whey butter were on the water, and 698 boxes of creamery butter and 85 crates of cheese were still in cool store awaiting shipment. All butter and cheese not yet marketed had been valued at a very conservative price, and with the advancing markets should show a substantial surplus oil realisation. The directors recommended an additional payment of lJ)d per lb. on but-ter-fat supplied for butter manufacture from August 1, 1930, to April 30, 1931, which would absorb £1370; also a dividend of 5 per cent, on all share capital paid up to April 30, 1930, and amountn,. to £209 19s Bd. An additional payment to milk suppliers would be made as soon as a few more shipments of cheese now on the water were marketed. Statistics for the year were: — Cheese: Quantity of milk received, 7,972,0781 b.; quantity of butter-fat, 344,ob’lb.; average test of milk, 4.32 per cent; quantity of whey butter made, 19,5151 b.; quantity of standardised cheese made fiaetory weight) from 187,3931 b. butter-fat, 523,3131 b.; quantity of cheese made per lb. butter-fat, 2.791 b.; quantity of full cream cheese made (factory weight) from 127,8761 b. butter-fat, 325,8791 b.; quantity of full cream cheese made per lb. butter-fat, 2.541 b.; cost of manufacture at per lb. butter-fat, 2.04 d; management, .46d; charges to f.o.b. ocean steamer, .22d; depreciation, ,04d; total cost, 2.76 d. Butter.—Quantity of cream received, 648,5781 b.; quantity of butter-fat contents (including skimmings, 29,2921 b. fat), 261,0401 b.; average test of cream (suppliers), 39.32 per cent.; quantity of butter made, 316,5741 b.; over-run, 21.27 per cent.; lb. cream to lb. butter, 2.04 lb.; cost of manufacture at per lb. of butter-fat for 12 months (exclusive of cream cartage at Id per lb .butter-fat), 1.26 d; management, .39d; charges to f.o.b. ocean steamer, .09d; depreciation, .04d; total cost, 1.78 d. CHAIRMAN’S ADDRESS.

The chairman .congratulated the shareholders on another substantial increase in butter-fat, 29,0811 b. Prices had been the lowest for many years, and by increasing the supply they were in some measure creating a set-off against the loss in price. Nine years ago the company had 40 suppliers and during that year handled 171,6081 b. butter-fat, whilst to-day they had 72 suppliers and handled 576,3091 b. butter-fat. That showed very clearly the progress of the district. In regard to cheese manufacture, the factory was working almost to capacity, but without being put to the necessity of any heavy capital expenditure in connection with the enlargement of the butter plant, they had room for a considerable amount more home-separ-ated cream. If, however, they had to make all the present supply of wholemilk and home-separated cream into butter they would then have to face heavy extensions to the butter plant. During the past year, butter manufacture had had an advantage over cheese manufacture, but it was only on rare occasions that that happened. The lower prices of both butter and cheese during the past season had stimulated consumption to such an extent that there were no overlying stocks in England—in fact, there was a shortage —and in view of the probability of Canada this season sending forward to the English market 15 per cent, less cheese, everything pointed to a better range of prices for cheese, providing they sent only the best quality. There was no doubt that during the past few vears the average quality of New Zealand cheese had been slipping back, and he felt sure that the adverse reports in regard to bad quality which had been filtering through from London from time to time were justified, and that if they were going to recover the good graces of the British public they must make drastic improvements in the quality of the milk and in the method of manufacture. In regard to butter there were not the same adverse comments ou quality, but nevertheless they were not showing any improvement in that direction; if anything, they had been losing ground a little. Notwithstanding the substantial increase in supply, the company was £14,073 behind in payment for butterfat. From August 1, 1930, until January 1, 1931, they manufactured standardised cheese, when, owing to the general collapse “'f the cheese market and the disfavour for that particular class of cheese, the u ectors decided to make only full cream cheese. That was continued until the end of March, and when they found the home market becoming more or less demoralised they turned to the' manufacture of butter only for the remaining month of the financial year. STOCKS STILL TO BE SOLD. . Account sales for a number of shipments had yet to arrive, and there were still 414 crates of cheese and 897 boxes of last season’s butter to market. Sufficient surpluses on cheese shipments sold since the date of the balance had : rived or were in sight to enable the compan.v to pay. Id additional for the season 'on all butter-fat supplied by u hole milk suppliers, iu addition to a

5 per cent, dividend, and he hoped it would not be very long, before they were in a position to finalise the year’s a ou: ts. To date, the average payment to whole-milk suppliers for cheese-making was 10.43 d, and to cream suppliers for butter-making 12.04 d. "When everything was sold they weie hopeful of bringing the average payment to whole-milk suppliers to between lid and Hid per lb., and to cream suppliers 12.50 d per lb. butterIn the manufacturing account the item wages and salaries showed a slight reduction, and in the working expenses there was, as a whole, a very small increase— £24. Expenditure under these items was governed by the policy or the company, and during the past year they were one month less on cheese. That would probably account for these variations, in management expenses there was a drop of £589, and all that savins had been made in the item or repairs and renewals. The cost of manufacture for the past year was 2.76d.i0r cheese and 1.78 d for butter, as against 3.07 d and 1.99 d respectively for the previous year. The average grade for lull-cream cheese had been 91.448 and for standardised cheese 91.495, the average over all being 91.477. The grade for creamer” butter was 94.425 and for w hey butter 89.035, and the chairman considered the manager and staff were to be congratulated on very good work. . Replying to Mr. . Lyford, the chairman said'that there were 42 milk suppliers and 30 cream suppliers. Mr. Lyford pointed out that there were now five directors representing milk . suppliers and two cream. He considered the cream suppliers were entitled to another director. . . Messrs. E. Old and Hellier, directors, pointed out that the directors made no distinction, their policy being to give satisfaction to all. N.D.A. CONFERENCE CRITICISED. Mr. McWhirter considered that the N D.A. conference was more or less a farce. He took strong exception to it beino- dominated by members of the Dairy Control Board and others. For the two vacancies on the directorate there were three nominations, Messrs. W. N. Ackland and E. Hellier (retiring directors) and A. Old. The election resulted in the return of the two first mentioned. Mr. McWhirter- took exception to the provision requiring candidates for the directorate to be nominated seven days prior to the annual meeting, but it was explained that this was in accordance with the Act. Mr. E. P- Webster was re-elected auditor. . A. vote of thanks was accorded the manager (Mr. 7. G. Drake) and staff, the secretary (Mr. E. W. Garner) and his assistant (Mr. Godfrey), members epeaking in eulogistic terms of their work in a difficult year, especially in keeping down costs. The directors were also accorded a vote of thanks, as was also the manager of the Bank of New Zealand (Mr. Keeling). In accordance with notice Mr. Old moved that the resolution passed in 1928 to the effect that home separation take place during the winter months from May 1 be. rescinded. This was seconded by Mr. Hancock. Mr. Ackland pointed out that the resolution had been passed on the grounds of economy, which ,was more essential now than ever. The motion was lost.

Mr. H. B. Lepper was re-elected chairman of directors and Mr. Openshaw deputy-chairman.