PRODUCTION OF RENNET

Taranaki Daily News, 28 June 1934, Page 14

PRODUCTION OF RENNET

SUCCESSFUL CO-OPERATION NEW ZEALAND COMPANY’S YEAR. SHAREHOLDERS’ ANNUAL MEETING. A record of successful co-operation was disclosed in the report submitted to the 18th annual meeting of shareholders of the New Zealand Co-op. Rennet Company at St. Mary’s Hall, New Plymouth, last night, a profit of £759 being shown. Mr. J. B. Murdoch, chairman of directors, presided. The annual report stated that owing to the lack of stocks of veils at the commencement of the year it was necessary to import rennet for early season requirements of shareholders. That necessitated an increase in the selling price of rennet for the season. Ample stocks for the coming year had been secured and the price to dairy companies had therefore been reduced. During the past two years 14 additional cheese-making co--1 operative companies had taken shares. Those companies are all users of the company’s products. Further additions had been made to land, buildings and plant. Those additions were necessary to keep pace with the growth of the company’s business. The year had closed ; with a balance for appropriation of £759 ‘ 11s 3d. It was recommended that the amount available, after payment of income tax, be applied to reduction of the debit to profit and loss account. The year again proved very successful, remarked the president in moving the adoption of the report and balance-sheet. All knew the troubles they had had in the early years in manufacturing an article suitable to the requirements of the industry, and during that period the company lost £7OOO. However, ever since Mr. G. H. P. Fitzgerald was appointed manager there had been a marked steady improvement. Not only had the loss been reduced to £2434 but the company had turned out a commodity that proved very satisfactory to the industry. 70 PER CENT. OF COMPANIES. There were still a few dairy companies in New Zealand not using their product, which was proving very satisfactory to 70 per cent, of companies, as was shown by the fact that there had been no complaints. As the company was using New Zealand raw material in the manufacture of its commodity, he thought it was only fair to ask that New Zealand dairy companies should use that commodity. The company was in a sound financial position, as besides reducing the loss it had- also built up its land, buildings and plant, which stood on the books at £5700. That, together with their liquid assets, was sufficient to fully meet their share liability. That, he considered, was a great record for a company established in New Zealand to have achieved against world competition. During the year the company had enlarged its buildings and plant and was now in a position to manufacture the whole of the requirements of the industry in New Zealand. Thq company started the season with difficulty in securing stocks of veils and had to make arrangements to import requirements to meet the position. The company also imported some rennet. The difficulty had now been overcome and there were now in stock sufficient veils to meet the requirements for the whole of the season. Arrangements had been made to purchase sufficient veils this season to meet the following season’s requirements, so that the rennet would be matured and again prove satisfactory to the cheese producer. He thought there would be no difficulty over the supply of veils as long as the bobby calf industry was in vogue. Mr. Murdoch pointed out that there was an assistant chemist doing good work, so that they could be assured of continuity. He extended an invitation to all to visit the factory and inspect he plant and its operation, when they could note how systematically everything was carried out. It was gratifying to note that fourteen new companies had linked with the company. The directors had reduced the basis of share capital to one share for every four tons of cheese, compared with the original bisis of one share for each ton of cheese. The company, therefore, had ample capital for its requirements and it certainly seemed that in two years they could look forward to the loss being wiped off altogether, when the company would be in a position to further reduce its price. The adoption of the report and bal-ance-sheet moved by the chairman was seconded by Mr. E. Scott (T. L, Joll) and carried without discussion. For the three vacancies on the directorate there were four nominations. They were Messrs. J. S. McKay (Inaha), C. I. White (Eltham), retiring directors, C. A. Marchant (Cardiff) and W. Wickham (Ngaere). The first three were elected. Mr. W. J. Tristram was re-elected auditor, the fee being increased from £l5 to £25. The directors’ honoraria was fixed at the same as last year.