OUTPUT A RECORD

Taranaki Daily News, 5 September 1933, Page 10

OUTPUT A RECORD

KAUPOKONUI DAIRYING BUTTER-FAT INCREASE 11 PER CENT PAYMENT OF 9.88 d. ESTIMATED. The thirty-sixth annual meeting of the Kaupokonui Dairy Company was held yesterday, Mr. E. T. Bourke presiding over a large attendance of shareholders. The annual report stated that following a poor spring production, the season developed well and concluded with a record autumn production and an increase in the total milk supply over the previous season of 11.8 per cent, and in butter-fat 11.2 per cent. Owing to the uncertain market conditions the monthly advance could not be maintained at a constant figure, but up to and including June 20 an average advance of 7.99 d. was made. The appropriation account showed a further £28,370 14s 6d available for distribution. The directors recommended that 4 per cent, interest be paid on all fully paid-up shares, leaving an amount sufficient to make further payments totalling 1.89 d. per lb, or a total estimated pay-out of 9.88 d. per lb butter-fat, exclusive of interest on shares. Further payments were made on July 20 and August 20, bringing the total advances to every supplier up to 9jd per lb butter-fat. During the 1930-31, which marked the commencement of the financial depression, it became apparent to the directors that a period of low prices would adversely affect stores and indirectly result in more of the company’s liquid assets being tied up in store stocks and book debts. The situation became more difficult as the depression continued, and it was thought advisable to take advantage of favourable offers for the lease of the Auroa and Kapuni branch stores. An independent valuation of drapery and boot stocks was also carried out and provision made under this heading in the store accounts. A very careful examination of all debtors’ accounts had been completed and adequate provision was shown in the accounts for possible bad debts. After making these provisions there remained a substantial store reserve account to meet contingencies. In attacking these problems arising from the depression the directors had looked to-day’s conditions in the face and had not hesitated to take such steps as they considerede advisable to,meet the changing times. SEASON’S STATISTICS. Factory statistics were:—Milk received, 77,196,8921 b; lbs butter-fat received, 3,343,2171 b; average test, 4.331; total charges up to f.0.b., 2.823. Used.for cheese-making: Milk, 75,133,5871 b; butter-fat, 3,247,0981 b; average test, 4.322; cheese made (factory weights), 8,356,1821 b (3730 tons Bcwt). Used for butter-making: Milk, 2,063,305 lb; lbs of butter-fat, 96,119; average test, 4.658; lbs of butter made, 112,953 (50 tons Bcwt). Whey butter totalled 216,5521bs (96 tons 13cwt) and whey butter per ton of cheese was 58.05. The chairman said the year had been one of the hardest in the history of dairying. While prices had been low the prices of supplies had been high and out of all proportion .and made it very difficult for farmers to carry on. He did not think prices should have gone as low as they did, and he thought there was more than supply and demand to cause it. He felt that much was due to the weak holding agent who had to let go to meet his drafts. It might be better if the produce were consigned through a few of the leading firms,, so to avoid the trouble caused by the weak holder. He felt that if this had been done they would have realised a few shilling per cwt more all through. The chairman referred to /the grading of milk and differential payments and appealed to suppliers to send the best quality milk. The directors did not approve of the new regulations regarding the disposal of whey butter and made a protest accordingly. Speaking of waxing Mr. Burke said the company had had good results and waxing had given satisfaction in saving shrinkage. The present regulations were “neither one thing nor the other.” He believed most companies would wax and the directors proposed to continue as it was unwise to throw away from 1 to per' cent, in shrinkage. The chairman was pleased to note the great improvement in quality, not only in their own company but also in the industry generally. “QUOTA NOT SO DISASTROUS.” He did not want to see a quota, said the chairman, but if it was forced he did not think it was going to be so disastrous as some people thought. In Australia there was the Patterson scheme for raising the price of butter by 2d per lb. This had the effect of decreasing local sales and making a bigger amount for export. Some of the people who were opposed to the quota were advocating the Sinclair scheme, which would have the same effect here. The consumption of cheese in New Zealand was not very large and he thought that if a good article was placed on the local market the sales could be greatly increased and the quota if brought in would not be felt to the same extent. , Speaking of the future Mr. Burke said prospects were brighter this season. Wool and lamb prices had gone up and many sheepfarmers would not go into milking, and many now milking would go back to sheep. The same amount of fertiliser was not being used this year, and he did not think there would be the same amount of produce as last season. He felt that the economic conference must be productive of some good which would be reflected in the outlook for produce. Tile chairman believed considerable savings could be effected if amalgamation was carried out in the industry generally. The sooner it was brought about the better. MANUFACTURING COST DOWN. Salaries and wages paid by the company were £421 higher, but fuel and power were £460 less, although the output was greater. This was largely due to the installation of mechanical stokers which enabled cheaper grade coal to be used. Requisites had increased by £B4 and cartage by £531. This was due to less back cartage and more repairs. Railage had gone up £240, but freezing and storage on a larger supply was £59 less. Repairs and renewals were £l3OO less, the directors deciding not to spend any money that was not absolutely necessary. The cost of manufacturing had been reduced from 3.139 d, to 2.823 d, or over Id per lb butter-fat. The directors would do their best to bring down costs further, but owing to the exchange some of the requisites would be a little dearer. The chairman gave a comparison of the output of cheese over the past five years, the past, season holding the record for the company. The cheese produced in crates was as follows: 1928-29, 42,101; 1929-30, 45,370; 1930-31, 47,782; 1931-32, 45,003; 1932-33, 50,992. The position of the store was not quite so satisfactory, said the chairman, but there was nothing to be alarmed at. The stocks were re-valued and written down fairly heavily and he thought it right that values should be brought down. Every trading business had had some

hard knocks during recent years. ( The Kapuni and Auroa stores had been leased and the stock sold. It was thought that by concentrating on the two stores a better return could be shown. There were daily services running to the various branches. The gross profit of the stores had been small, showing that the prices were competitive and not too high. The slump had caught them all and the company was prepared to treat people reasonably. The chairman thanked the staff for the way it had carried on. Although the wages had been cut the men had worked just the same. He also thanked the shareholders for their support and confidence. Mr. W. King complimented the directors on the working of the factories, but said he could not do so with regard to the stores. The chairman ■ said the loss on the store would not affect butter-fat payments. Mr. R. J. Byrne said the retiring stores manager should be thanked for his services in the past TESTING SERVICE. In answer to Mr. N. C. Tregea the chairman said about 1400 cows were tested last year and any supplier could avail himself of the service. Mr; Tregea thought those who used the testing service should pay for it. Mr. Haseltine asked if 4 per cent, was not too high interest to pay to “dry” shareholders. Dr. A. M. Young congratulated the directors on the year’s results. He considered it a good performance to pay 9Jd .and extinguish liabilities to the extent of £2OOO. Honour was also due to the executive officers for the year’s results. Mr. J. L. Evans said the directors and managers of the dairy industry did not seem to be able to refute some of the assertions made in the Press by Mrs. Harrison. The chairman said that the improvement in cheese quality was the answer. A motion moved by Mr. Tregea and seconded by Mr. Gopperth to make a small charge for the herd-testing service was lost. The retiring directors were Messrs E. T. Burke and F.' Muggeridge. Mr. W. D. Gulliver, who was appointed to fill the vacancy caused by the resignation of Mr. O. T. Parry, also retired. All were nominated for election and were elected unopposed. Mr. E. K. Cameron was appointed auditor. The chairman’s honorarium was fixed at the same as last year and the directors’ fees at £1 per meeting. Mr. H. Mead moved a recommendation to the directors to purchase British motor vehicles when required. The chairman said this system was being adopted wherever possible. The recommendation was carried. A resolution was passed altering the shareholding basis from 801 b of butterfat to 1201 b for each share. j The chairman proposed that nominations for the directorate be closed two days before the date of the annual meeting. He pointed out that there was little time to prepare ballot papers when nominations were accepted on the day of the meeting. The motion was carried. Mr. E. S. Bennett moved a vote of thanks to the staff, this being acknowledged by the general manager, Mr. W. J. McDonald. Mr. McDonald said while the methylene blue test had been adopted he was not altogether in favour of it. He preferred the curd test A milk that would give a satisfactory curd test was the milk for cheese-making. In a discussion on milk cooling Mr. Russell said he found that a double chute 32 feet long had reduced the temperature from 92deg. to 64deg. On the motion of Mr. R. J. Byrne a vote of thanks was accorded the ladies for providing refreshments. Mr. Burke was subsequently re-elect-ed chairman.