KAPONGA DAIRY COMPANY

Taranaki Daily News, 17 August 1933, Page 15

KAPONGA DAIRY COMPANY

SATISFACTORY POSITION

SUPPLIERS’ ANNUAL MEETING.

DISCUSSION OF COSTS,

The 35th annual meeting of the Kaponga Dairy Co. Ltd. was attended by 115 suppliers. Mr. A. V. Tait presided. In moving the adoption of the annual report (already published), the chairman said the payment was one of the highest for the province this year. Working costs had shown a reduction of nearly id per lb butter-fat for the second year in succession. In all probability those costs were now as low as possible, because during the coming season imported supplies would probably cost more owing to the increase in exchange. The advances to suppliers have increased somewhat owing to the advances made at the outset of the past season to three new suppliers to the company,” said the chairman. “In addition we have been able to meet all the many other legitimate applications for assistance we have received. This is due, I think' I am justified in saying, to the prudent manner in which our lending operations were conducted in more prosperous times. Despite the low prices that have been prevailing none of the accounts is giving us any anxiety and all borrowers are making as much headway in reducing their obligations |o the company as can reasonably be expected. NEW REGULATIONS. "Owing to the very good work our suppliers have been doing in the way of supplying good quality milk, I do not anticipate that you will find anything irksome in the new regulations, and you will net have any great difficulty ii? keeping in the first-grade class. "It must be remembered that in this connection the factory managers are Government servants charged with the performance of a certain duty and undei a personal penalty to the Government for any breach. Such is the light in which the suppliers must regard them, realising from their past experience that they will do this duty fairly and impartially. There is also to be remembered the regulation requiring suppliers to be in the factory yard by 9 o’clock.” In yield they had a pleasant surprise, Mr. Tait said. The quality was unexcelled in New Zealand and they still attained a good yield. In reviewing the financial position the chairman said contingent liabilities gave no worry and the position was quite sound.

Mr. D. Gibson asked If the laboratory subscription was being maintained in view of the fact that the company had its own microscope and did not now send samples for testing. The chairman replied that the company was under contract with the laboratory for three years and its services were sometimes needed for testing peculiarities of milk or water. Mr. Gibson asked if the company made enough use of Mr. Veale to obtain value for £5B.

“I would not say that we did, but the time may come when we will meet with some baffling problem,” Mr. Tait replied. Mr. Cook explained that It was on Mr. Veale’s advice that the microscope had been obtained. "If we have a lot of second grade milk,” Mr, J. J. Malone asked, “can we send a sample to the laboratory as a check on the manager?” The chairman: Certainly. Mr. D. Gibson moved that the laboratory subscription be discontinued after the present term had expired. Mr. Espiner moved an amendment that the directors be recommended to make what use they could of the laboratory The amendment was carried. COST OF FUEL. In answer to Mr. D. Gibson’s request for information as to the cost of fuel Mr. Cook said that coal and wood had come down to a greater extent than electricity, which was more under fixed rates owing to interest. Mr. Gibson thought an arrangement might be made with the town board whereby the company could continue to use electricity at a satisfactory rate. If the electric scheme could not dispose of its power the loss would come back on the fanners.

Mr. Cook said much bf the powei! used was for runrung the freezer and as the town board had to buy extra power at peak load it was glad that demand had ceased.

The chairman said there was no surplus power going, to waste. All was being used. He was himself somewhat disappointed in the results from electricity. He thought that these might be better if there was plenty of power and they had a cheap heating system. Mr. Scott pointed out that in 1923 coal cost £3 2s 6d a ton, whereas now it was less than half. It would never pay to use electricity while coal could be bought at that price.

Mr. J. Jackson asked if it was necessary to keep the instructor now that there were grading and differential payments.

The chairman thought it was.

In reply to Mr. L. Chamberlain, who asked what became of the half-penny deducted for second-grade, the chairman said: “I venture that second grade milk will soon be as scarce as moa bones. Where second grade is experienced it will be graded every day.” The retiring directors were Messrs. W. A. O’Neill and W. E. Holland, who along with Mr. H. Hooper were nominated for the two vacancies. The ballot resulted: Holland 383, Hooper 233, O’Neill 205. The chairman moved that the meeting place on record appreciation of the many years of faithful service that Mr. O’Neill had given the dairy company. For 20 years he had missed only two meetings, once when he was ill, and once when he was at New Plymouth on Moturoa business. The motion was carried with acclamation.

The chairman considered it was time hot water from the factory was omitted It was costing £3OO a year and everyone had a heater on the farm. He moved that it be stopped. Mr. Croad, the instructor, said a lot of trouble was due to washing cans in half-warm water.

Mr. Lavall moved an amendment that they defer the matter for 12 months. Finally it was decided to continue the hot water as at present. Mr. Espiner asked if there was any comparison made as to grade obtained at the high-testing and low-testing periods of the season. He asked how the richer milk compared with the early part of the season. Mr. Scott replied that the only difference was that when the milk was of lower test a cheese of higher yield could be made and the cheese still be of good quality. As the test increased the yield receded. There would be about five points difference between spring and autumn tests. Anywhere from 3.8 to 4.25 was a test that he could make a good cheese from without any extra trouble. From May onwards he had to go to much extra trouble. The average test at the lowest period would be about 3.75 to 3.8. - Test had not really much to do with the problem. It was the ratio of solids to fat that mattered. In answer to a question whether the

company had considered paying out on solids, the chairman replied: “I do. not know if we are ready for this yet, but no doubt it will come.” It was resolved to pay the usual dividend of 5 per cent. It was. decided that the honorarium and directors’ fees be the same as in the previous year, an amendment for a 10 per cent, reduction being lost. Mr. H. A. Lennon was reappointed auditor.

A motion was carried that the butterfat basis of each share be altered from 701 b. to 801 b. A special resolution increased the capital from £25,000 to £26,000 by the creation of 1000 £1 shares.

Mr. D. Gibson asked why the company could not buy back the surplus shares of any holder instead of creating new ones. He did not see why a man should hold more shares than necessary. Mr. Cook said the company had no fund available for such purchase, but any supplier could sell his surplus shares privately. In again referring to the successful quality of the past season, the chairman mentioned that the company had topped the Moturoa grading list after being 27th the previous year. This happy result had been brought about by excellent team work beginning with the secretary, Mr. Cook, and following on through the directors, the managers, the staff and the suppliers. Each man in the factories had pulled, his weight and a bit more, the men putting in voluntarily 10J hours a day. Al had been conscientious workers and it was the best team work they ever had in the factory.

The chairman’s motion that a hearty vote of thanks be accorded the secretary, managers and staff throughout the factories was carried with acclamation. In the team work the suppliers, too, had made their valuable contribution, said the chairman, and he thanked "them for the improvement in the milk. Mr. Cook in reply said they all felt gratified at the past success and hoped to do still more in the future. Mr. Scott expressed appreciation of the tributes to the staff. He said their work was nearer 12 hours a day than 10. . He thanked the suppliers for the good quality of milk. It was the best he ever had. , , The shareholders were entertained at supper by the staff.