OAONUI DAIRY COMPANY

Taranaki Daily News, 1 August 1932, Page 11

OAONUI DAIRY COMPANY

ALL FINEST AND FIRST GRADE. YEAR CONSIDERED SATISFACTORY. A payment of ll|d. per lb. butterfat, with the probability of an additional farthing when the season is finalised, was the result of the Season’s workingreported at the 36th annual meeting of the Oaonui Co-operative Dairy Company on Saturday. At each branch a good percentage of the output was graded finest and all the balance first. A decrease in the cost of manufacture despite a decline in the output was recorded. There was practically no discussion on the report and the retiring directors were unanimously re-elected. Mr. James Young, chairman of directors, presided over an attendance of about 70 suppliers. The annual report showed there was a large decrease in the supply for the season, but climatic conditions were without doubt responsible. The cheese output was again handled by agents and satisfactory prices were returned by them all. Payments to suppliers were: June-July, September, November and February-May 10d,, October lid., August, December and January 9d. , Statistics were: Central, 5,465,1951 b. milk, 233,099.31 b. fat, 594,2221 b. cheese, 9,1971 b. milk to lb. cheese, 2.5511 b. cheese to 11b. of fat; average test, 4.263; Arawhata, 5,791,9301 b. milk, 238,636.21 b. fat, 617,3941 b. cheese, 9.3811 b. milk to lib. cheese, .2.5871 b. cheese to 11b. fat, average test 4.120; Kina, 4,326,44011?. milk, 181,709.21 b. fat, 461,0511 b. cheese, ■ 9.383 lb. milk to each lb. of cheese; 2.5371 b. cheese to lib.- fat, average test 4.11-9; totals, 15,583,5651 b. milk, 653,354.71 b. fat, 1,672,6671 b. cheese, 9.3161 b. milk to each lb. cheese, 2.5601 b. cheese to each pound of fat, average test 4.192: milk received and skimmed, 655,2101 b., butterfat 33,834.11 b., butter made 40,9761 b., overrun 21.108. Whey and home-separated cream were again forwarded to Pihama for manufacture during the cheese-mak-ing period. This season the total milk received was 16,258,7701 b. (compared with 17,328,6601 b. the previous season), butterfat 687,188.81 b. (740,979.11 b. costs per lb., of butterfat 2.740 d. (2.888 d. Last year no depreciation was allowed for, but this year ,174 d. was deducted, making tlic total cost of manufacture 2.914 d. REDUCTION IN COSTS. . In' moving the adoption of the, report and balance-sheet the chairman said depreciation amounting to £5OO 18s. lid. had been written off, that being sufficient to meet the company’s obligations with th© bank. Plant and machinery at tlie main factory had been increased by £ll3, the cost of putting the butter plant in order. All other assets were the same as in the previous year, less the depreciation. The company had sufficient reserves to meet any losses in connection with the box company-shares. The shares in the Taranaki Producers’ Freezing Works Company had been paid up' by a. further £79 16s. 6d., out of rebates on last season’s working, the a mount being placed to the credit of tlie share .capital account. Stores on hand were, shown as much, lower owing to cheese-making having been continued to the«end, of- the season. There were 1605 crates of cheese on hand at the time of balance, as compared with. 904 crates last year. That cheese had been taken into account at 5d.. per. Ibi On the liability side share capital had increased by-'£ls4 10s. sd. and the reserve account by £ll3. In the working account grade fees, freezing charges .and the cost of crates, boxes and cartage were all lower, principally on account of the Big decline in output. Electric power and fuel were slightly higher. Stores, salaries and wages, trade ex- ; penses and other overhead expenses all showed a reduction. The costs per lb. of butterfat, Mr. Young continued, were 2.743 d. against 2.588 d. the previous year, but the depreciation had to be deducted this season. There would, have been a much bigger reduction in -the costs, but jlifit after Christmas a severe drought greatly reduced the supply, the total intake of milk falling by 1,069,8901 b. The secretary stated that at May 31 the company had shipped 8604 crates of cheese, of which account sales had been received for 5630 crates returning exactly the sum at which it had been •taken into account. The remaining 2974 crates liad been taken into account at an advance equivalent to 535. and had since been sold at prices ranging from 545. to 605., which should give an additional £5OO. Of 1595 ci-ates of fcheese in the works taken into account at equivalent to 535. per crate, 1245 crates had been shipped. Every Shilling received on an average above 535. for the 1595 crates meant a surplus of £llO. The position therefore was as follows: Balance in hand, £3Ol, credit on sales £5OO, bonus on cream £4OO, a total, of £l2OO. It required £1442 to pay a further halfpenny. POSSIBILITY OF SHILLING. If the cheese in hand realised 58s. to 60s. the payment would average just over Is. per lb. butterfat. There had been a decrease of 70 tons in the output. At the main, factory the decrease had been 13.7 per cent, and at Arawliata 10.36 per cent, but at Kina there had been an increase of 6.2 per cent. Quality was made the main consideration, said the chairman. Mr. O’Rorke stressed the necessity for maintaining the quality. The retiring directors, Messrs. Young, R. J. O’Rorke, S. M. Coombe, S. J. Clegg,T Gardner (main factory), R. H. Bayliss (Kina) and E. G. Holmes (Ara-wh-ata) were re-elected. Mr. G. W. Rogers was re-elected auditor. The chairman was again granted an honorarium of £5O. Referring to milk grading, Mr. Gardiner said he did not see any necessity to introduce preferential payment on grade. During the past two years the company had manufactured 1600 tons of cheese and not one crate was second grade. That, was a tribute to the work of the manager and staff and to -the care taken

by suppliers in. the handling of the raw material.

Replying to Mr. Gardiner, the manager (Mr. A. McDougall) said he could detect feed flavour in the milk both by the curd test and by the senses, but he could not detect -mammitis in the curd. Mr. Gar-diner moved that no differential payment be made. That was seconded by Mr. Eustace and carried. Mr. J. C. O’Rorke asked whether the directors intended to begin casein testing, as a neighbouring company had done. It was a question whether they were not paying more for the butterfat than was equitable. The chairman said the position was being carefully watched and if necessary the directors would take action, The shareholders were provided 'with lunch, which was served by Mesdamcs S. M. Coombe, T. Gardiner, A. McDougall and C. Ross and Miss Young.