TIKORANGI DAIRYING

Taranaki Daily News, 17 August 1933, Page 16

TIKORANGI DAIRYING

38TH. ANNUAL MEETING PRODUCTION SLIGHTLY INCREASES. LOWEST “PAY-OUT” FOR 30 YEARS. A slight increase in production, with a “pay-out” the lowest for over 30 years, was reported at the 38th annual meeting of the Tikorangi Dairy Company yesterday. Mr. C. Foreman, chairman of directory, presided over a large attendance of suppliers. In the absence of the secretary, Mr. James Hine, through ill-health Mr. L. H. Sampson acted as secretary. The report expressed regret that the economic conditions prevailing last year had been intensified and the general position of all industries was in a very deplorable state. Dairy produce prices were lower than for the past 30 years, consequently the returns to suppliers throughout the Dominion, and indeed in every producing country, were extremely low. During the past year a water service had been completed, which was giving an adequate supply of pure water 'and removed the serious difficulty which had been experienced for many years. Casein had been disappointing and had so far only returned lid. per 1001 b. of milk, but a further small sum due would be sufficient to pay about another id. All costs to f.o.b. were now standing at 1.4 d. per pound of butter, including payments made on account of the water and drainage schemes. During the present month Mr. Hine, owing to failing health, tendered his resignation as secretary, which the directors had accepted with regret, and they desired to place on record their high appreciation of the faithful ■ services rendered during his long association with the company extending to 30 years. Statistics were submitted as follow: Milk, 9,720,9071 b.; cream, 901,2251 b.; fat in milk, 448,016.971 b.; fat in cream, 352,416.51 b.; total fat, 800,433.41 b.; butter, 968,0261 b.; average test, mifk 4.6, cream 39.1; milk for casein, 4,852,1091 b.; curd, 129,7401 b.

Conditions appertaining to the dairy industry had been extremely bad, remarked the chairman. The company had not been as fortunate as some companies in selling a portion of its early output. He understood that there had been offers of up to HJd., but though the directors had never received a definite offer, at that price they had been asked to put their early output under offer at that price, but had not done so, as with the market price ranging from 112 s. to 120 s. per cwt. llld. per lb. did not look a good price. However, later in the season, when their produce landed and realised about 685., or 6Jd. per lb., they learnt to their sorrow that it was a good offer. Later in the year prices did not improve, but fortunately they had then received the benefit of the additional exchange that had made more than a penny per lb. butterfat difference and had 'been a great help to suppliers. SEASON’S PAYMENTS. Towards the close of the season prices began to improve, and with a view to finalising the season the directors made sales as high as 9Jd. per Jb. f.o.b. New Plymouth. That had enabled them to lift up the lower advances during, the earlier part of the season and had raised the average payment for butterfat over the whole season to 83d. per lb., which was the lowest payment made 'by the company over a period of 30 years. Indeed, they had to go back as far as the 1901-02 balance-sheet to find a payment as low as BJd- The bulk of the produce had been consigned and had secured the prices ruling on the market at the time of arrival.

The chairman said he understood there had 'been a good deal of comment about the action of the directors in installing a new pasteuriser. The first old one was beyond repair and would have cost £155 to replace, while the other would have cost £4O to repair but in two years would have had to have been replaced at a cost of £2BO. It was therefore considered more economical to put in one machine at a cost of £360 to do the work of the two machines, especially as the new machine could be extended at a very small cost to cope with any increase in supply. Besides being a pasteuriser the machine also acted as a cooler. He held that the machine would prove thoroughly efficient and economical. In any case, it had been put in under a guarantee and if it did not fulfil requirements would be taken out at no cost to the company.

The water supply at the factory was again proving a serious problem, so the directors after thorough investigation put into operation a scheme for securing a permanent supply of water from Mr. Lepper’s property, Otaraoa Road. As a result even during the dry period of last summer the factory had an adequate supply of water. The automatic stokers attached to each boiler had given complete satisfaction. Referring to the manufacture of casein, the chairman said that the position had proved somewhat disappointing. At the last annual meeting he had stated prospects were looking brighter than for some months previously. Unfortunately, prices declined to such an extent on the English market that it had dropped to £lB a ton, a price at which it would not pay the New Zealand producer to manufacture. Later in the season the price started to improve until it reached

£42 a ton, which allowed a reasonable price for the milling of curd. That price still held good on the world market, and from reports received the indications were that casein would be profitable during the coming season.

The chairman pointed out that milk grading with differential payment had come into operation' since the first of the month, and at present was going on quite well. With the exception of the first two or three days the whole of the milk had graded first, but it remained to be seen how the milk would stand up to the grading during the hot weather. He considered that with reasonable care and efficient coolers they should not experience any very great hardship by the grading regulations, and if they were going to raise the quality of their produce on the London market they should not have any regrets. Reviewing the balance-sheet, the chairman stated that freezing charges had increased a little, due partly to the slightly increased output and partly to the extra time the butterfat was held. The costs of manufacture per pound of butterfat amounted to 1.7 d., which was the same as last year. This year, however, payments were made on account of water and drainage. The cost per pound of butter to f.o.b. was 1.4 d. per lb. butterfat.. He paid a tribute to the assistance that he had received during a very difficult year from his co-direc-tors. He also expressed appreciation of the splendid work of the manager (Mr. J. W. Gamer), the secretary (Mr. J. Hine) and the staff. Replying to Mr. Hine, the chairman stated that it was recognised that the share capital of the company required increasing and steps would be taken. To a further questioner the chairman said the reserve had been built up to strengthen the company, and he considered it would be a grave mistake to interfere with that reserve. ELECTION OF DIRECTORS. There were three nominations for the two vacancies on the directorate caused by tile retirement by rotation of Messrs. J. H. Allen and G. E. Wills. The election resulted: J. H. Allen 395, R. C. Jury 234, G. E. Wills 228. Mr. A. J. Tunbridge was re-elected auditor at the same fee as last year. A vote of thanks was accorded the retiring ' director, Mr. Wills, reference being made to his splendid work during the past 20 years. The chairman was voted an. honorarium of £75. In acknowledging, the chairman stated that the year had 'been a very difficult one, as in addition to the marketing of the produce there had been the supervision of the drainage, etc. The directors were voted 15s. per meeting. Mr. J. H. Paulger brought up the question of adopting some method of paying for casein on a butterfat basis instead of as at present per hundred pounds of milk, but no action was taken. The directors were accorded a vote of thanks for the economical way in which they had carried out the business of the company.