MOKAU DAIRY COMPANY

Taranaki Daily News, 31 July 1931, Page 2

MOKAU DAIRY COMPANY

ELEVEN YEARS OF PROGRESS HIGH STANDARD OF QUALITY. INCREASE IN PRODUCTION. ~ A continued increase in production, with a decrease in the cost of manufacture and a payment of over lid per lb butter-fat with a further balance yet to come were mentioned in tihe report presented to the eleventh annual meeting of the Mokau Dairy Company yesterday. Mr. L. R. Jones presided ovej about 35 suppliers. The report stated that conditions for dairying were again excellent, and there was an increase of 13,9031 b of butterfat supplied to the company. The quantity of cream received and the figures relating to production were: —Quantity of cream received, 717,7.951 b; quantity of butter-fat, 279,8031 b; average test of cream, 35.96 per cent.; quantity of butter made, 346,6871 b; over-r - n, 20.09 per cent.; lbs cream to lb butter, 2.0711 b; cost of manufacture at per lb butterfat I.s'Jd, management .44d, charges to f.o.b. .19d, depreciation .16d, total cost 2.35 d.

During the year £12,135 Is lid had been paid suppliers, being equal to 10.40 pence per lb butter-fat. The sum of £l9O had been written off fox- depreciation and there remained a balance of £B'Bs 14s 7d to the credit of profit and loss account. The results of all shipments up to and including the s.s. Port Pirie, covering the make up to January 5, 1931, had been taken into account in the balance-sheet; 2,032 boxes were on the jvater and 807 boxes were in. cool store, awaiting shipment. These had been taken into stock at a very conservative price, and with an improving market should show a substantial surplus when marketed. The directors recommended an additional payment of id per lb on butter-fat supplied during the months of October and January, and IJd per lb on butter-fat supplied durin" November-December amounting to £796 5s 9d, and bringing the average payment for the season to ll.OSd per lb butter-fat. A further payment on butter-iat supplied during the whole season would be made as soon as all the shipments of last year’s butter- were finalised. GREAT POSSIBILITIES. The chairman expressed pleasure at noting an increase in supply. They had just completed the second year in which the joint supply of the Awakino and Mokau districts had been handled by the company, and he felt sure the increase would be maintained in the future. In fact, he was very hopeful that in the near future they would have to consider enlarging the factory. Although the district was essentially a mixed farming one, there were great possibilities for dairying, and he had every confidence that dairying would develop further in the future. That should enable them to run a factory with an output of probably 400 tons. The quality of the butter was show•ing an improvement each year and the London agents advised that they had now firmly established the Mokau brand which was meeting with a ready sale at top market, prices. Throughout the season the quality reports sent with 'each shipment had been very complimentary, reflecting great credit on the manager (Mr. C. J. Vezey) for the care he has bestowed on the manufacture. The average grade for the year to June 30, 1931, was 93.01. At the commencement of the season it was thought the slump through which they had been passing was practically over, and that the ensuing season would show a gradual improvement. They were disappointed, as instead of improving, markets became gradually worse. London agents had done their best to hold up prices without success. During the year there had been many false starts, so that, believing the market would stabilise at about 125 s per cwt, the directors followed a consignment policy, arid although salps of butter during February/April at Is to Is |d were probably a little in advance of consignment results for that period, he thought that, providing the market improved from now onward, the average for consignment results for the year would? not be very much behind Hie general run of sales. PRODUCE TO BE REALISED. Since the balance-sheet had been made out five shipments comprising 820 boxes had arrived in Britain and a further six shipments were on the water. The balance of the May butter was going forward by the Port Dunedin, Which loaded at New Plymouth last week, and the Tararoa, to load there next week. It was impossible to say when they were likely to recover from the depression, but advices received from London agents recently were more optimistic. Although recovery would probably be slow, that should be better than any violent rise in prices, which would no doubt be followed by another serious fall. At the present time the statis-tical-position appeared to be very sound with no immediate prospect of an oversupply. The improving position of the cheese dip. ket would probably cause most of the cheese factories to revert to cheese manufacture at an early date, and consequently prevent an over-supply of butter from New Zealand. For the first time in the history of the company they were keeping the factory open during the winter months, and it was hoped that would be permanent. The chairman then reviewed the bal-ance-sheet, remarking that the total cost of manufacture was further reduced from 2.50 d in 1930 to 2.35 d during the past year, and it was hoped, that the increased supply and the reduced cost of manufacture would continue during the subsequent years. He thanked his co-directors for the assistance given in a most difficult year. Thanks were also due to the staff for their loyal assistance. Mr. Raven commented on the evenness of the prices received by the various shipments, which ranged from 10.47 d to 12.11 d. The secretary stated that the prices received by the company for its butter compared very favourably with the prices received by well established factories. Mr. Black suggested that at future annual meetings the proportion of finest and first grade cream supplied should be reported so that suppliers cou'ld know where it was necessary to improve. The chairman said the suggestion would be adopted. Mr. F. W. Sutton said he thought a little of the credit for the quality of the produce should be given to the manager, whom he congratulated (applause). Mr. Black thought that the supplying of poor quality cream was due more to ignorance than to carelessness, and that the appointment of a farm dairy instructor would be beneficial. Such an appointment would cost only l-50d per lb butter j fat, and that would be more than repaid by the improved quality.

He therefore moved that the company ask the Government to introduce a universal system of farm dairy instruction as approved by the last two N.D.A. conferences. ... Mr. Sutton seconded, remarking wiat suppliers need not fear that they worn be ordered to carry out expensive improvements if such an appointment were made. , Mr. J. M. Bryant considered that some of the flavours were due to swamp feed. Cooling the milk properly would largely get over the difficulty. He considered the matter of appointing an instructor might be deferred for a year, and meanwhile an appeal, should b£ made to suppliers to instal coolers. Mr. Sutton said cooling would take out a good deal of the feed flavours and the pasteuriser would also assist. At Mr. Black’s suggestion it .was resolved to add to the motion that the cost be subsidised by the Control Board. Mr. Black pointed out that the board was already subsidising herd testing, also expending a lot of money in advertising New Zealand produce. By assisting to improve the quality of produce the board would be considerably helping its advertising scheme. The motion was carried, the chairman remarking that he did not think there was much possibility of the Government expending any further money on inspectors. ELECTION OF DIRECTORS. The retiring directors, Messrs L. R. Jones and S. Sheen, were re-elected unopposed. . .. Mr. E. P. Webster was re-elected auditor. The directors were voted an honorarium of IDs per meeting, members stating that now the company was in a good position it should not expect the directors to attend .meetings at their own expense any longer. In moving that the factory subsidise herd-testing to the extent of 6d per cow Mr. Bryant pointed out that group herdtesting would increase production and so reduce the cost of manufacture. With, the assistance received from the subsidies given by the Government and the Control Board the cost of testing would ■be reduced to 3s per cow. It was hoped, he said, to have a complete group formed in Mokau. At present 19 suppliers of 52 were testing.

In seconding Mr. Sutton said systematic herd-testing was as essential as top-dressing in increasing production. Testing seemed such an obvious adjunct to the dairying industry that he could not understand the ordinary dairy farmer not adopting it. If such a proposal would induce suppliers to test it was worthy of every consideration. With known tested cows and a bull with but-ter-fat backing a farmer could keep his own heifers and in three years he could improve his production considerably. Mr. Black did not think the 6d relief would cause people to test who were not otherwise inclined to test. It might also cause a little ill-feeling. Moreover, it would appear in their balance-sheet and xyould cause them to pay a little less than otherwise, which was an important matter when their balancesheets were compared with other factories. '

Mr. Raven pointed out that the herd fee charge pressed very heavily on small herds. He also considered that if possible there should be a two-day test.

The chairman said he sympathised with the proposal as he recognised that the idea behind it was increased production. However, if a farmer with a herd of 26 cows would not voluntarily test with the inducement of, say, an extra £5O per year production, he did not think an additional 10s would act as an inducement. As one of the 19 now testing he did not think it would be advisable to subsidise the testing out of the factory funds. The motion was lost.

Mr. Bryant urged all members of the association to mark any eligible cows.

Replying to a supplier, the chairman stated that it cost .68d to convey the Mokau River cream and .56d to cart the Awakino cream. The cost was very moderate.

Eulogistic reference was made to the work of the manager (Mr. C. J. Vezey) and it was unanimously resolved to vote him a bonus of £2O. Appreciative reference was also made to the work of the secretary (Mr. E. W. Garner). '

Mr. Jones was unanimously re-elected chairman.