OPUNAKE CHEESE-MAKING

Taranaki Daily News, 24 August 1931, Page 14

OPUNAKE CHEESE-MAKING

SUPPLIERS’ ANNUAL MEETING

LARGE INCREASE IN PRODUCTION.

CONSIGNING POLICY BRINGS

An' increase in production of over 25 per cent, in the year and a payment of probably IOJd. were reported at the 32nd annual meeting of the Opunake Cooperative Dairy Company on Saturday. Mr. E. G. Baylis, chairman of directors, presided over "an attendance of about 40 suppliers. The annual report congratulated suppliers on the further increase in output. Apart from that the year had proved a most anxious one for those connected with the industry. The manufacture of full-cream cheese had been continued, and a satisfactory improvement in the grade attained. The cheese had been consigned, and in view of market quotations 0 good prices had been returned. The manufacture of cheese had been discontinued for May and June, the milk then received being separated and the cream sold to the Pihaina company. Advances to suppliers had varied considerably from month to month, the average being approximately 0.75 d. per lb. butterfat. If the unsold cheese realised the amount estimated the final payment (with anticipated surpluses from cream sales) would be 10IdStatistics for the year, with those of the previous year in parentheses, were: Milk received, 8,640,0061 b. (6,855,3401 b. butterfat, 348,899.81 b. (289,6271 b. cheese, 919,7611 b. (724,7461 b. pounds of milk to pound of cheese, 9.21 (9.458); pounds of cheese to lb. of milk, 2.63 (2.50); average test, 4.225 (4.12). Milk separation: Milk, 372,8591 b.; butterfat, 19,107.61 b.; average test, 5.14. Mr. Bayliss congratulated suppliers on the increased supply. The directors had adopted a consigning policy, he said, having had early offers for sale that it had been considered advisable not to accept. The company’s output, Mr. Bayliss pointed out, had increased from the 168 tons made when cheese was first manufactured by the company a few years ago, to 416 tons last season, which had shown an increase of nearly a third on the previous year. The cheese had been favourably reported on by their British agents, the product apparently being just what was required; it was not all superfine, but it was all very favourably commented upon. WORKING COSTS REDUCED. Apart from the fuel, the working expenses had been a little greater, but not in comparison with the increased production. The costs had been reduced considerably to 2.144 d. per lb. butterfat. The company was again consigning its produce through the same firms as in the past season. The prospects for the coming year, Mr. Bayliss' said, did not seem too bright for the farmer, and careful management would be necessary. They had been told to seek more production by top-dressing and herd-testing. That advice was all right, and with the present low prices it had to be followed because the man who did not do so would find himself left behind. Production, however, might be overdone; indeed, Mr. Bayliss considered over-production was one of the causes of the present low prices. Cheap meat was also a factor in the price of cheese, as it limited the demand. It was no use blaming standardisation for all the trouble. Certainly, some factories had manufactured from standardised cheese. When a thing was cheap there was a tendency for people to find fault with it, Mr. Bayliss said, whereas when it was dear they seemed to consider they were lucky to get it and did not criticise.

Mr. J. Humphries considered that as prices were so low the directors should have considered reducing the amount of depreciation ( £500). The chairman told him the company was under ah obligation to reduce its liability to the bank. Mr. J. S. Hickey asked how many crates the company had on the water when it was asked to place its produce on firm offer at GJd- The chairman said there were about 500 crates on the water, 500 crates having arrived in London.

Mr. Hickey considered the directors were unwise in declining an. offer equivalent to 655. for cheese that was arriving in London on a market of 58s. The secretary: The price was from 625. to 635. The chairman defended the action of the directors. They had received, offers at s|d., then 6d., and three days later and the directors had delayed for another increased offer. STORE TRADING STOPPED. Mr. Wisnewski asked for particulars as to the operations of the company in selling stores to suppliers. He thought the prices were too high. The directors were not encouraging the sale of stores at the factory, replied the chairman.

It was resolved, on the motion of Messrs. Wisnewski and C. Griffiths that the sales of stores at the factory should be eliminated with the exception of factory requisites and one or two specified items.

Replying, to Mr. W. L. F. Chambers, the secretary stated that as the output had increased so the cost of manufacture to f.o.b. had been reduced. The first year the company had. manufactured cheese the cost to f.o.b. including depreciation had been 4.13 d. per lb. butterfat. In 1929-1930 it had been reduced to 3.795 d., and last year to 3.268 d. per lb. Excluding depreciation last year, the cost of manufacture to f.o.b. . was 2.942 d. per lb. butterfat. The secretary reported that 4.77 per cent, of the company’s cheese had been second grade. That clearly indicated suppliers must take steps to improve the quality of the milk supplied, said Mr. Wisnewski. He understood -that during the flush considerable quantities of water were being token to the factory, thus adding to the manufacturing costs.

The chairman said the directors were taking steps to have the milk tested for water. He said, that the cost of fuel had been reduced.

A supplier pointed out that the manager had secured a splendid yield, higher than that of the previous year, so if there were water in the milk it was an extra feather in. the manager’s cap.

Mr. J. Humphries commented on the fact that the milk required to a pound of cheese had been reduced to 0.211 b., which compared more than favourably with other-factories. He did not support the allegation that water was added. For the five seats on the directorate there were eight nominations, Messrs. Bayliss, J. C. Barrett, E. S. Hickey, A. W.'Wan (retiring'directors), J. S. Hic-

key, Wisnewski, Humphries and Griffiths. The election resulted in the return of Messrs. Bayliss, J. S. Hickey, Wan, Humphries and E. 8. Hickey. The chairman was voted the s niJ‘ e honorarium ( £4O) as for last year. The chairman announced his willingness ta accept a 10 per cent, reduction, but an amendment to that effect was defeated. DIFFICULTY OVER.WHEY. A supplier complained that water was added to the whey so as to make the supply eke out for the last suppliers, owing to shortage due to soine of the suppliers taking more than their proper g Ii arc, Mr. Bayliss agreed that water should not be added to whey. Steps would be taken to prevent suppliers taking more than their share. Replying 'to Mr. Affleck, the chairman stated" the directors did not intend to introduce milk grading this season. Samples would be sent occasionally to the laboratory for grading, but until the milk was paid for on a differential basis according to grade it would not be advisable to give the manager the additional work, of grading. Mr. Bayliss all suppliers ’ to send' the best quality raw material' and they could then expect the factory to make the highest quality product

It was decided that the names of suppliers should be posted at the factory with the butterfat tests. Replying to Mr. J. Sinclair, Mr. Bayliss said it was not proposed to join the farm dairy instruction scheme. It was the intention of the manager to visit the farms from time to time and he would be able to give any necessary advice to enable suppliers to improve the quality of milk. Suppliers considered that would be satisfactory. The directors were recommended to take all steps possible to prevent the adding of water to milk. Confidence was expressed in the manager (Mr. H. H. Gilshnan), who was voted a bonus of £lO 10s.