PIHAMA PAYS TENPENCE

Taranaki Daily News, 6 August 1934, Page 2

PIHAMA PAYS TENPENCE

37 PER CENT. FINEST CHEESE

SUBSTANTIAL OUTPUT INCREASE.

WORKING COSTS BELOW 2W POUND.

The 37th annual meeting of the Pihama Dairy Co. Ltd. was held on Saturday, Mr. T. Carey presiding over an attendance of about 45 suppliers. The directors’ report stated that the intake of milk again showed a marked increase on the previous year. Although dairy produce prices did not fluctuate much during the season no improvement had been shown. Towards the end of the season the directors were enabled to dispose of all unsold cheese at a very satisfactory price. Payments to suppliers were made as follows: June to September, 9d; October to December, 8d; January to April, 7d; May, 8d; and June, 9d, and a further payment was being made at the annual meeting to bring the payment for the season to lOd per lb butterfat, plus J per cent, interest on shares. The butter department handled 521,9541 b of creamery and whey butterfat against 420,2531 b for the previous season. The factory statistics showed a marked increase in total milk received over the past three seasons, the respective figures being 1933-34, 22,004,3501 b; 193233, 20,958,5901 b; 1931-32, 18,281,2401 b. The butterfat was 938,7711 b, 886,6941 b, and 782,9821 b respectively. Total costs per lb had shown a continued decrease the respective years being 1933-34, 2.43 d; 1932-33, 2.54 d; 1931-32, 2.77 d. Tire statistics for the respective factories for the present seasons were: Central, 9,929,2991 b milk, 420,254.51 b butterfat, 1.084,4751 b cheese, average test 4.232; Waiteika, 3,102,840, 130,207.5, 336,932, average test 4.196; Skeet Road, 7,983,420, 341,566.5. 369, average test 4.277; totals, 21,017,460, 892,028.5, 2,292,776, average test 4.244. Of the total of 13,975 crates 5271, or 37 per cent., were graded finest, 8614, or 61 per cent, first and 90, or .64 per cent., second. There was no second grade at Waiteika branch. LARGE INCREASE SHOWN. In moving the adoption of the report and balance sheet the chairman said the intake in both departments showed a large increase. In cheese the company took in 1,045,7601 b of milk more than the previous year and 8,723,1101 b more than in 1932 while the cheese made was 70J tons more than the previous year, making the total output of cheese 1023 J tons. The butter department made 291 tons of butter, 71 toils being whey butter and 221 tons creamery butter. Of the creamery butter 110 1 tons were sold on the local market and 109 J tons exported. The milk grading regulations came into force during the season and suppliers made an endeavour to supply the best possible milk. The second grade butterfat was 11,5101 b, or 1.22 per cent, of the total, which at >}d per lb equalled £23 19s 7d. The grades had been raised con-? siderably and a good deal of this was due to the better claSs of milk. “The new marketing regulations are now in force and it is difficult to see just what effect they will have,” said the chairman. “For the past two years the directors have endeavoured to sell produce f.o.b. and good sales have allowed us to complete the payment and assure the suppliers of the best returns possible, but it would seem that under the new regulation this business will be almost completely cut out. There were no offers for produce in the early part of the season, but towards the end of the year buyers began to operate and the directors finally accepted 5Jd for all unsold cheese amounting to 4352 crates. The home produce markets have not been very bright but it is satisfying to see the position so steady.” The services of the dairy instructor had been dispensed with from July 31. The congestion at Skeet factory became serious and Mr. J. D. Conaglen agreed to take his milk to the main factory. CURD TESTING MACHINES. In his review of the balance sheet the chairman said the item to plant was the cost of the three curd testing machines- and the additions to the Skeet Read curing room amounting to £422. The directors placed a further £865 to depreciation reserve, making tills total £1668. Cheese on hand was made up of 1778 crates at the works, taken into stock at 5Jd, and butter at 9d. In the liabilities the capital account increased by £345 and the reserve accounts by £614, while the overdraft was half what it was at June 30, 1933. The most pleasing feature Was the sound financial position the company was in. Fixed assets and shares in other companies amounted to £22,970 and shareholders had found by way of capital and reserve accounts £17,122, leaving the debt at £5848. The authorised bank limit would be £B5OO, so it would be seen the finances were on a very sound footing. The fact that total costs were less by .lid spoke for itself and showed that the managers were economising wherever possible. The company was that day paying £B6BB in further payments, making the payment for milk suppliers to date lOd a pound butterfat for the season, plus interest on shares, and this left a balance of £364 to carry forward. There was already another Id in sight. In the cream department the total costs amounted to 1.941 b a pound butterfat and they were bringing the payments to 9Jd finest and 7£d whey cream, With a possibility of further payments when all butter was disposed of. The final payment for last season was lOd for whole milk, 91 d for home separation and 8d for whey cream. The chairman tendered thanks to his co-directois, for the way they had pulled together, and to the managers, secretary and staff. In seconding Mr. J. S. Tosiand remarked that the exchange was as good as an additional lAd. Referring to various departments of costs he said there had been a saving in fuel costs, while stores and requisites had shown a slight increase. In salaries and wages there was a reduction due to the fact that the vats had been kept fairly full and .the managers had practised the greatest economy. Interest was substantially less as the result of lower rates and a smaller overdraft due to paying smaller advances. It had been the policy of the directors to save as much in this respect as possible. Touching upon the bobby calf position Mr. Tosiand urged suppliers in the interests of the rennet industry to send their calves to the works eVen if they obtained only the price of the skin. The rennet industry was very important to dairying and it would be unfortunate if there were a shortage of rennet. Tire plant had been kept up-to-date as far as possible, added Mr. Tosiand, and the value on the balance was fully sustained. A new curi l- room had been put in at Skeet Road at a cost of £4OO. Mr. J. D. Conaglen expressed pleasure at the building up of reserves and asked if provision had been made for writing down the shares in the Box Company.

Mr. Tosiand replied that nothing had so far been done.

To Mr. Conaglen, who asked what effect the Sinclair stabilisation plan would have on the company’s local sales, the secretary replied that it would depend upon the form of the proposal. Mr. Cdhaglen congratulated the directors on the success of the years’ operations. This was supported by. Mr. R. M.

Cathie, who considered the result was brought about by the hard work of the directors.

Mr. Looney paid tribute to the good work put in by the managers and staff.

The auditor stated that the position between assets and liabilities had improved £1479 during the year and, he commended the steps that had been taken to build up reserves and reduce, liabilities. The reduction in working costs amounted to £409 and since 1927 these had been reduced by 1-ld. The retiring directors were Messrs. C. R. Julian (Main), G. H. Looney (Waiteika) and R. S. Campbell (Skeet). The first two were re-elected unopposed, but Mr. Campbell decided - not to seek reelection, Mr. R. M. Cathie being elected to the vacancy unopposed.

Mr. E. K. Cameron was re-elected auditor. A vote Of thanks was accorded Mr. Campbell, the retiring director, whose services were eulogised by the chairman. Thanks were also given the manager and staff, the secretary, the auditor, the ladies and the Press.

Mr. Cathie suggested that support should be given to Mr. Polson and Mr. Dickie in obtaining representation of the dairy idustry on the Meat Board. This was supported by Messrs. Tosiand and Duffy, and it was resolved to make strong representation that the dairy industry be given direct elective representation on the Meat Board. Mr. J. F. Shepherd mentioned that there was a new butter process in operation at Auckland, and he suggested that inquiries be made concerning the method. This was agreed to. Mr. Carey was re-elected chairman at a subsequent meeting of directors.