ELTHAM DAIRY COMPANY

Taranaki Daily News, 3 August 1931, Page 12

ELTHAM DAIRY COMPANY

SOUND FINANCIAL POSITION SATISFACTORY BUTTER SALES. MILK GRADING DISCUSSED. .The 39th annual meeting of the Eltham Dairy Co. Ltd. was held on Saturday, Mr. C. H White presiding over a good attendance of suppliers. In moving the adoption of the report and balance sheet, the chairman said: “1 am sorry we are unable to show a higher return for your butter-fat; .we have not had such a low payment since 1912. When I advised you at last annual meeting to expect lower prices for some time, 1 little thought they would fall as low as they have done. “The so-called slump has been brought about chiefly by conditions over which we have little or no control. There is a world-wide trade depression and until conditions improve in the older countries we must expect a continuation of lower prices for our produce. There is one thing that we can do to help bring prices to a higher level again and that is to make the quality of butter and cheese the consumer want. lam convinced that if we wish to hold our position on the British market we must send only the best quality. “The directors decided to make fullcream cheese this season, not because we thought we could not make good standardised cheese, but because we considered it useless to try to sell an article to the consumer which he said most emphatically he did not want. In February, as we.considered the prospects looked better for butter than cheese, we decided to switch over to butter for the remainder of the season, and results so far have justified our decision. We also decided to hold the cheese we have in store, about 3899 crates, for another two months, partly in- the hope that prices would advance, but principally to see what difference the two months’ extra maturity would make. We have had some very gratifying reports on this Cheese from people who inspected it in the grading stores, and we are now waiting to hear how it opens at the other end. It looks at present as though we would receive a considerably higher price than if we had put it directly on to the market. .. “We were able to sell our butter at a price which considering the quantity (15,000 boxes) and that it included butter in store and afloat, must be considered very satisfactory. COSTS KEPT DOWN. The directors have had a very trying season. At most times they have had very little to guide them in making decisions, but it appears at present that most of the decisions have been correct. We have tried to keep costs as low as possible but there is always a certain amount of work to be done to keep our ■buildings'and plant up to the standard we consider necessary. • During the season we have made considerable repairs to the weir and additions and repairs to the buttei- factory and alterations to the Mountain Road branch. Our butter factory 1 is now capable of handling all the cream we are likely to receive for some time to come. We will very soon have to provide accommodation for a larger supply at Mountain Road. The suggestion is to make room for another three vats and the alterations just completed will work in with and be part of the complete plan. We have also installed a new cream vat and a mechanical stoker at the butter factory. The stoker is proving very satisfactory—it has reduced our fuel bill by exactly half. We will probably be cramped for space at some of the branches next season,, and as we do not wish to spend any more money than is necessary on additions, we ask suppliers to assist us by taking their milk when possible to branches where there is more room. There is considerable agitation just now in favour of milk grading. The directors, while recognising we must do all we can to improve quality, consider farm dairy instruction will give much better results and be more satisfactory in every way.” The auditors in their report stated that the sound financial position of the company had been well maintained during the year. QUALITY OF MILK. Mr. J. L. Campbell said he believed milk grading would be tried but exactly hbw payments would be made he did not know. The directors favoured instruction. ■ . Mr. Knuckey considered their past work in farm instruction had been successful and the quality of milk had improved greatly under inspection. If they did away with inspection and put in pasteurisers it would cost a lot of money. If suppliers knew the good results of instruction they would not consider its cessation. Mr. J. Bootten claimed that they were not receiving any better price as a result of their instruction. Mr. McKinley was not against,instruction but wished that expenditure should be kept as low as possible. ■■ The question of combining with other companies for instruction was referred to by Mr. Knuckey, who did not think that method would be any cheaper as the testing would have to be paid for additionally. At present farm instruction was costing the company £3Ol a year. If they joined with Ngaere, Lowgarth and Mangatoki they would save probably £lOO but this would be offset by extra payment for the testing. CUTS IN SALARIES. In reply to a question by Mr. Blackstock regarding the salary paid to the general manager, the chairman stated they had in Mr. Smith an excellent manager {ind he was not being overpaid. The manager, secretary and staff had re-