DAIRYING AT ELTHAM

Taranaki Daily News, 19 August 1935, Page 2

DAIRYING AT ELTHAM

GOOD AUTUMN SEASON OUTPUT PRACTICALLY THE SAME. PAYMENT OF lOd EXPECTED. HIGHER WORKING COSTS. A final payment of a little over 10id to cream suppliers and from 9jd to lOd for whole milk was shown in the report presented at the forty-third annual meeting of the Eltham Dairy Co. on Saturday, , - u ♦ Presiding over an attendance of about 120 shareholders the chairman, Mr. C. H. White, in moving the adoption of the report and balance-sheet, congratulated suppliers on the result of another successful season. Prices for produce had not been as high as could have been desired, he said, but the recent slight rise in prices would improve the position as shown in the balance-sheet. There was still a considerable quantity of produce unsold which made it rather difficult to estimate what the final returns would be, but if present prices were realised the final payment should be a little over IOJd to cream suppliers and from 9Jd to lOd to suppliers of whole milk. Although the weather had not been, as good as could have been wished Eltham was fortunate in not having the severe drought experienced further south and around the coast. The output was not materially affected by the weather, being practically the same as the previous seaSOn> t-Xl The cost of manufacture was slightly higher, partly due to working a six-day week and partly to manufacturing a greater percentage of cheese than butter. Repairs and renewals were again a fairly big item, but in a business the size of the company it cost a lot to keep everything up to the desired state of efficiency. However, the manager had everything connected with the factories in good order. The company shipped the whole of the cheese on consignment but made three sales of butter, each of which was well above the then market price and, as far as was known, the best sales made at that time, but it looked now as if they would have realised a better price on consignment RESERVE ACCOUNT. The reserve account stood at £17,608 and he thought they could safely leave it at about that figure. The position of the contingent liabilities was also in a very much more satisfactory position. The Egmont Box Company, the National Dairy Association and the New Zealand Rennet Company were all now showing a profit on their business, and if the Taranaki Freezing Works continued to pay a rebate shares in that company should be paid up in a little over two years. The Producers’ Marketing Association had not paid a rebate for some time, but it was not expected any further call would be made on capital. “As to the prospects for the coming season, I would not care to advise you,” added the chairman. “Fortunately we are relieved for the time from the nightmare of impending quotas, but there are many factors which govern the price of our produce. There is not only our own production, but the production of all other countries selling dairy produce on the British market as well, including Britain herself. Another factor just as important is the ability of the consumer to purchase our produce. Then there is the restrictions imposed by many countries against imports of dairy produce. If these restrictions were lifted I think it would do more than anything else to improve our position. Undoubtedly one reason for the low prices of cheese this season was the competition of cheese placed on the market by the British Milk Board. I understand the board has decided to manufacture at least a part of the surplus milk into butter instead of cheese. If that is so it may improve the market for our cheese.” Mr. White expressed the appreciation of the directors of the splendid service given by the management and staff. OPERATION OF FACTORIES. The report stated that butter-fat handled was practically the same as during the previous season, the falling off during the dry period of January and February having been balanced by a phenomenally good autumn. Operation ot the butter factory resulted in the manufacture of 862 tons of creamery butter and 65 tons of whey butter. With unsold consignments of creamery butter valued at 85s per cwt. the return would be 10.13 d per lb. of butter-fat in’cream supplied. Operation of the branch factories resulted in the manufacture of 2197 tons of cheese and 728 tons of casein curd, as well as the supply of cream to the butter factory. With unsold consignments of cheese valued at 43s per cwt., casein curd and whey butter at the amount already received, and cream as shown above, the return to milk suppliers would be 9.51 d per lb. butter-fat; These estimated payments would be adjusted in accordance with realisations of produce still unsold. The season had again been a most difficult one as regards policy decisions. In the early months certain reports indicated that butter prospects were poor, but as the casein market was firm it was decided to continue converting part of the milk supply into casein and butter and the balance into cheese, thus spreading the risk. Later in the season the cheese position proved very disappointing while butter improved, and the proportion of butter made was increased, cheese-mak-ing ceasing at the end of April. Factory statistics were, with those for 1934 in parentheses:— General: Number of suppliers. 312 (313); number of cows, 13,221 (12,950); average lb. of Butter-fat per cow, 270 (276); pounds of milk received, 73,975,735 (72,546,907); pounds of butter-fat from milk, 3,327,749 (3,295,833); average test of milk, 4.49 per cent. (4.54 per cent.); pounds of home-separated cream re-

ceived. 641,131 G 26.477); P°^ ds ter-fat from cream, 249, BjB (283,524), average test of cream, 38.97 per cent. (39.02 per cent.); total pounds of butterfat received from suppliers, 3,577,601 (3,579,357). , ... Cheese-making: Pounds of milk, 45 199,399 (43,216,189); pounds of butterfat 1,974,930 (1,910,174); pounds of cheese (factory weights), 4,922,196, 2197 tons (4 703,841, 2100 tons; average test, 4.3 b per cent. (4.42 per cent.); pounds of cheese from 1001 b. milk, 10.88 (10.88). Butter-making: Pounds of milk, 28,77 b, 336 (29,330,718); average test; 4.70 per cent. (4.72 per cent.); pounds of butter-fat, I, (1,385,659); pounds of butter-fat from home-separated cream, (283,524); total pounds olfor butter-making, i,602,677 pounds of butter made, 1,931,192, 862 tons (2,006,723, 896 tons); over-run, 20.49 per cent. (20.22 per cent.). Whey butter: Pounds of whey butter made, 146,888, 65 tons (139,440, 62 tons); pounds of whey butter made per ton of cheese, 66.8 (66.4). . Casein: Pounds- of butter-fat in milk used for casein: 1,141,857 (1,154,288). The election of directors resulted: R. J. Knuckey 879, C. H. White 875, H. A. Wood 468 (elected), J. L. Campbell 446, L. T. Quin 248, The auditor, Mr. E. K. Cameron, stated that the manufacturing accounts of both butter and cheese showed fluctuations, chiefly due to the different amounts of butter, cheese and c&sem manufactured. The item of wages showed an increase of over £5OO, due to the six-day week. Repairs and maintenance showed a similar increase, the total charge to f.o.b. being higher by .13d per lb. butter-fat. . Referring to the sound financial position of the company the , auditor , said liquid assets exceeded current liabilities bv £s2l4—an improvement of £1773 on the year. Depreciation of £2203 had been written off and the reserve account was now £17,608, being 26 per cent, of the assets of the company. The contingent liabilities of shares in other companies had been reduced by £424. Produce unsold had been taken into account at figures well below current quotations, and the present indications gave hope of larger supplementary payments than were anticipated at the date of the acIn reply to a question by Mr. W. MeKinley it was stated that directors fees and travelling expenses were similar to those of last year. REPRESENTATION AT N.D.A. Mr. McKinley questioned whether it was necessary to send two directors, the chairman and the secretary to the conference. It was not necessary, replied the chairman, but it was advisable, and he pointed out that the conference gave splendid opportunities of extending one s experience in dairying problems. Mr. W. Bootten asked what were the comparative manufacturing costs of casein and butter. The secretary replied that it was difficult to separate these costs entirely, but generally the cost of making casein was and of separating fca. Mr. W. P. Jenkins said some suppliers contended that it would have paid better to have separated instead of making casein. n . The chairman said there was about Iju net in casein. If they made butter all the time they could perhaps do the work more cheaply, and he was doubtful if they could do as well out of skim milk as out of casein. It was considered unfair by some suppliers that casein should be made at certain factories each year, said Mr. Jenkins. It was felt there should be rotation. It was also considered there was too much water in the whey. The chairman refuted the suggestion that there was too much water in the whey. There was no more in casern whey than in cheese whey, he said. Both types had been analysed and there was not a gfreat deal of difference in -he food value, but casein whey was not quite as good as that from cheese. Th® reason for not changing round the manufacture of casein was that they had. to make it where there was adequate supply of milk and water. Mr. J. Cocker asked if less water could be put in casein whey. . The manager, Mr. W. Smith, replied that the water used for washing casein did not go into the whey; actually very little water went in. Mr. R. J. Knuckey said the difference in the feeding value of the two classes of whey was very small. . - WHEY DIFFICULTY. The chairman considered that the on ly satisfactory solution of the whey problem was to make it into concentrated pig food. It would overcome the difficulty of drainage and of suppliers tak--ing too much. He believed that sometimes the manager might have to put m water to make the whey go round. Mr. McKinley: There is not enough to go round even when there is water in it. Mr. Knuckey contended that every supplier should act honestly and take only his own quantity; otherwise it would mean engaging a man to measure it. Mr. A. C. Sorensen said suppliers were fined for taking too much whey at some factories —5s the first time and £1 the second. It was a mistake to allow the manager to put water in the whey. Suppliers then felt justified in taking extra .whey because they were not getting their quantity. The chairman: It is not an instruction to managers to put water in the whey. Mr. McKinley suggested that managers be instructed not to put water in the whey. ■ , Mr. J. Hunger urged that the correct percentage of whey for each supplier be put on a board on the stand and each would know what he was entitled to. Mr. E. W. Hills asked what the payment would have been if cheese had been made all the time instead of butter. The chairman replied that it would be difficult to arrive at that as different quantities of casein were made at different times. One large company making cheese paid 9d. Mr. J. J. Sulzberger congratulated the directors on the increase in yield. The chairman said they had tried all fair methods of getting a yield. The test had been lower this year, which would also affect the yield. Mr. Sulzberger: I do not think we will get the full yield until we pasteurise. Mr. McKinley asked if there had been any result from pasteurising at Waihapa. The experience there was not very conclusive, said the chairman. COMPANY’S EXPENSES. Some suppliers considered expenses should be cut down, said Mr. Jenkins. They said the secretary’s salary should be reduced by a third and that the general manager and insti-uctor were not j needed. He moved that it be a recommendation to the directors that expenses | should be well cut down. , Mr. P. Stretton said the instructor was! carried entirely by the company and was I also doing other work for the company.! He did not think Eltham should be the; only company to carry an inspector. The Government was still paying portion of the' instructor’s expenses, said the chairman, and Eltham was not the only company in Taranaki with an iristructor. There was a strong move to have universal farm instruction, and then it would perhaps be difficult to get the same efficiency. His advice was to keep the instructor as long as possible. | Mr. Jenkins explained that he had i every confidence in the instructor’s ser-| vices.

The chairman: Have the critics any alternative regarding the manager? Mr. Jenkins: No, but it is considered

the branch managers should be able to do their own work. The chairman explained some of the duties of the general manager, pointing out that he was fully occupied all day from 8 to 5 and often more than that. There were hundreds of things to be attended to and suppliers had no idea what he did. The secretary had no time to do any more and was “snowed in” with work at present. There were all the details of the different departments, and sometimes he would be three or four days on Government statistics. The amount that might be lost if the details were not attended to might be more in one “hit” than would be saved in a year. The indents all had to be attended to, and it was impossible to run a business of that size without a manager. Mr. Knuckey considered it would be foolish to attempt to do without a manager or an instructor. He felt certain the Government would put on ’an instructor on the group system with 750 suppliers to each. If ffie milk was not pasteurised it would be necessary to keep a few suppliers up to the mark. Many of the suppliers required no instruction, but it was to the benefit of the clean suppliers to have the bad ones kept up to the mark. Pasteurising would kill all the good food flavours as well as the bad ones. It was an expensive way of killing filth. They wefe not at the top of the grading, but they were at the top in quality when the produce reached the consumer, said Mr. Knuckey. Cheese could not be graded when it was curd, but only as cheese, and he urgdd that grade marks be left off at this end and that the buyer be allowed to buy the cheese on its quality at the other end. It had been said that prices were evened up on various shipments, but he believed that each should be sold on its merits. There were 313 suppliers and the salary of the manager would not amount to very much per head. It would be a serious mistake to do without him. Mr. J. L. Campbell also supported .he retention of the manager and instructor. The manager had to see that supplies were received in good condition and it would be easy to lose his whole salary in one crack if things were wrong. The instructor had been beneficial, and the fact that they had got on so well without pasteurisation was due to inspection. A voice: And we get tfie lowest price. We used to beat Mangatoki and now it beats us. Mr. Campbell pointed out that the general standard of New Zealand produce fixed the price an<i the better produce did not bring commensurate returns. Mr. H. B. Gibson contended that the two officials were not over-paid. There were ten branches and a butter factory. The directors were the ones to see that the manager did his work. He was a capable manager. Mr. Gibson favoured pasteurisation and said he would have a pasteuriser in every branch. They would pay for themselves in three years from the extra yield. x A supplier pointed out that pasteurisation was condemned in the Manawatu and factories were putting it out. Mr. Gibson: That is not the opinion of Taranaki managers. Mr. Sulzberger estimated that he lost £lOO owing to the absence of pasteurisation. PASTEURISING OPPOSED. Mr. T. E. Trask said he was not in favour of pasteurisation. Massey College authorities advocated non-pasteurising if the milk could be cleaned. Eltham s milk was clean. It would be a retrograde step to d° without a manager, but they were not giving him a “fair spin. They were paying a big sum each year to the laboratory; he believed they could have their own laboratory on the spot in charge of their own manager. This would be an advantage in testing samP Mr. Trask added that he would want some conclusive evidence before he supported an expenditure of £lO,OOO in pasteurisers. It was questionable whether it would give a better yield. Mr. Gibson said niore fat could be incorporated in the cheese under pasteurisation, and the solids were not lost in manufacture to the same extent as without pasteurisation. The chairman pointed out that any fat not incorporated in the cheese was not lost in the wh->y but was separated and sold as butter at double the price of cli€ese« Mr. E. K. Cameron assured suppliers tl at as auditor he was satisfied there was no leakage or undue expense in the conduct of the company. If he found this he would have no hesitation in saying so. He reminded them that with a big company of ten branches it was necessary to have a general manager. For such a company working costs of 2.08 d

were very good and compared with many one-roof factories. Mi. Knuckey gave short review of the operations of the Egmont Box C 0.,, pointing out this was in a better position than ever before. The good position of, the Taranaki Producers’ Freezing Com-: pany was also mentioned by Mr. Knuckey. The chairman gave a review of the operations of the Rennet Company, pointing out that the concern was now in a splendid financial position after having to struggle in its early stages. Ib was supplying about 80 per cent, of the : cheese colour and rennet used in New Zealand. ' ' ■ > Mr. Cameron was re-appointed auditor. Mr. J. L. Campbell, the retiring director, was accorded a vote of thanks for. his services. Mr. White was re-elected chairman at a subsequent meeting of directors.