INCREASE IN PRODUCTION

Taranaki Daily News, 27 July 1931, Page 12

INCREASE IN PRODUCTION

CAPE EGMONT DAIRY CO,

THIRTY-FOURTH ANNUAL MEETING

AVERAGE .PAYMENT EQUALS Hid.

A .substantial increase in production and a. deereaise in the- manufacturing costs, with a payment for fat over the season equivalent to llld. per lb. were reported at the 3lth annual meeting of suppliers of the Cape Egmont Cooperative Dairy Company on Saturday. Mr. P. Brophy, chairman of directors, presided over an attendance of about 60 suppliers. The annual report stated that the cheese manufactured, during the season was handled on open consignment. The produce met most disappointing prices when it reached the British markets and the price for cheese had declined so much by February that the directors decided ■to turn to butter manufacture. The estimated output for February, March and April was disposed of at Is. f.0.b., and the wisdom of that sale had been proved. A further quantity estimated to cover the make to the end of July had ■been disposed of on the same terms. Payments to suppliers had been made during the season as follow: —June Is., July Is. 3d., August, September and October Is., November 10d., December 9d., January Bd., February, March, April and May lOd. There remained £5238 ss. sd. for distribution. That after providing interest on shares would be sufficient to bring the total average payment for the season up to Hid. The season’s statistics were: Milk received for cheese-making, 15,829,7401 b. (20,276,9611 b. the previous year); butterfat for cheese-making, 626,062.51 b. (830,532.71 b. cheese made, 1,669,9321 b. (2,131,5681 b milk to pound cheese, 9.471 b. (9.511 b. cheese to lb. butterfat, 2.661 b. (2.561 b. average test, 3.95 (4.09); milk received and skimmed, 5,613,6301 b. (89,8241 b. butterfat content of same, 260,584.21 b. (3,951.91 b. home separated cream received, 11,5391 b.; butterfat Content of same, 4,539.71 b.; total butterfat for butter, 265,123.91 b.; butter made, 316,4161 b.; over-run, 19.34; average test (milk), 4.64 (4.39); milk (butter and cheese), 21,443,3701 b. (20,366,7851 b.); total- butterfat- (butter and cheese), 886,646.71 b (834,484.61 b average test for season, 4.13 (4.09); manufacturing cost, 1.93 d. per lb. fat (2.09 d other charges to f.0.b., .641 b. fat. (.92d). NO DEPRECIATION ALLOWED FOR. The chairman said it would be noticed, that there had been no depreciation written off Owing to the low prices for dairy produce on the London market and. the strong financial position of the company the directors had felt that placing the balance amounting to about £4OO to the reserve account would be preferable to deducting the usual £6OO for depreciation. Additions had been made of a water-pumping system to the cheese plant and. new cool'room coils to the butter plant.

Grade, freezing and port charges and cartage had shown a substantial decrease owing to the company’s turning to butter manufacture. Boxes and crates, fuel and electric power showed an apparent increase, but taken on a butterfat batsis were considerably less. Salaries and wages were showing a big decrease, and on a butterfat basis Were .lid. per lb. less. The balance of the items on a butterfat basis were lower than in the previous season. The amount paid suppliers was almoet a third less than in the previous year. Mr. W. J. Wright took exception to the item of £79 Is. sd. for dairy inspection. He considered that was an expenditure in which the company could well economise.. For the few occasions that they saw the inspector it must cost them £4 per day. He pointed out that during the past few years the milk had improved in quality, yet the cheese had deteriorated. The suppliers had certainly improved the raw material, but they were apparently not securing the results they should in the factory. He recognised that owing to the rise in the test and the endeavour to obtain a better yield from it the quality had suffered. It was a remarkable thing that though the quality of the cheese was deteriorating the grade marks were rising. Something was radically wrong; Mr. Wright considered the company should dispense with the services of the farm dairy instructor.

Mr. R. B. Fleming did not consider that dairy farmers were being advised by the department on the right lines. He thought that possibly too much attention was being paid to the scientific side at the expense of the -practical. For the two vacancies in the directorate caused by the retirement in rotation of Messrs. Brophy and P. C. Smith, there -were three nominations, and the election resulted: P. Brophy 235, W. E. Corbett 183, P. C. Smith 120. For the vacancy caused by the death of Mr. M. Fleming there were two nominations, the election resulting: R. B. Fleming 187 (elected), W. J. Wright 111. Mr. Smith was accorded thanks for his services. BASIS OF PAYMENT. In accordance with notice of motion Mr. W. R. Wright moved that steps be taken to have the articles of association amended to give the directors the power to" pay for mijk on any basis they considered -equitable. There had been considerable discussion, he stated, regarding the deterioration in the quality of the cheese, and while the Arbitration Act had been blamed (through causing the manufacture to be hurried) he did not think that was the sole cause. The managers were being blamed but he pointed out that the managers made good cheese twenty years ago, while at present the same men,.though trying to do so, could not succeed. The main reason, Mr. Wright considered, was because butter-fat would not make cheese. They had tried to do so during the past two years with disastrous results. He held that the higher the test the worse was the cheese .made, and consequently the lower the price received. The directors should pay on a fair basis —case and butter-fat. The Babcock test -was not fair for the lowtesting herd owner to whom one point variation in the test made a greater difterence than it did with the high testing milk. Mr. E. H. Taylor said the average test over the cheese-making period, for last season was not high, being, just over 3.9. There was great diversity of opinion as to the merits of high testing and low 'testi g milk. Possibly it might not be profitable to make cheese from high testing milk in the fall of the season, but he considered that 50 per cent, of thei • troubles came from tryinof to work to the Arbitration Court awarS. Cheese could not be made to the clock, and by forcing it the quality deteriorated. The quality of their raw material had greatly improved during the past fifteen years, and yet the quality of cheese had certainly deteriorated. As one who had both high and low testing cows, he would not object to the suggested alteration in the test. Mr. Taylor thought the cheese was going forward not sufficiently matured. Mr. Renton, manager of the company.

agreed that cheese should be more matured. He recognised that the qualify of the raw material had improved, but he held, that the quality of the cheese in the coastal district had also improved during the past few years. The experiment of paying on casein and butter-fat had been tried at Tariki, said the chairman, and had not been successful. The cheese that won all the prizes at the Wn.ika.to show was made from milk testing 5.3. Quality was their aim. . . As the owner of a big low testing herd Mr. W- Corbett considered the motion somewhat premature. The motion was lost, only four voting in its favour.

Mr., Wright moved that the company do without the services of the dairy inspector. Mr. S. Goodin seconded. He pointed out that the inspector had not visited his property during the year. The chairman said that some of the reports received from the dairy inspector showed that his services were required. The manager said he would be sorry to see the inspector’s services rejected at present. The milk had improved since the appointment of the inspector. A supplier could accept little attention from the instructor as a compliment. Mr. Wright did not consider the farmer was to blame for ’the trouble as the raw material had improved considerably. He thought the fault lay in tha manufacture; the department was somewhat to blame. The motion was lost. ' Regarding compulsory grading of milk, the chairman said , the directors had written the Dairy Division opposing the proposed regulations on. the oTounds of non-approval of. the rush methods adopted and because the proposed tests would not correctly test as between hand drawn and machine drawn milk. It was pointed out that in the past tlie quality of Cape Egmont produce had been uniformly good. Mr. P. Brophy was re-elected chairman of directors.

After the meeting suppliers were provided with afternoon tea by Mesdames P. Brophy, H. E. Ehrhorn, J. Hamel, N. Heisenbuttel, J. Hanwright, Misses M. Brophy, L. Gilhooley, M. Newport and M. Doyle.