KAUPOKONUI DAIRYING

Taranaki Daily News, 3 September 1935, Page 10

KAUPOKONUI DAIRYING

OVER NINEPENCE PAID DECREASE NEARLY FIVE PER CENT. COMPANY'S POSITION IMPROVED.

The thirty-eighth annual meeting of the Kaupokonui Co-operative Dairy Company was held yesterday, Mr. E. T. Burke presiding over a fair attendance of shareholders. The report stated that owing to an unusually dry mid-season, butter-fat supplies had fallen by 4.5 per cent, compared with the previous season. Including the further payment of August 20 the total advance to suppliers had averaged 9d per lb butter-fat. Unsold produce had been taken in at a conservative figure for balance-sheet purposes. It was recommended that 4 per cent, interest be paid on all fully-paid shares, and after providing for this, the balance-sheet showed an estimated distribution of 9.09 d per lb butter-fat. A considerable quantity of cheese remained unsold, upon which surpluses were anticipated, and further payments would be made if and when these surpluses became available. The directors were again pleased to report a satisfactory trading year in the company’s store, an increased turnover resulting in an increased nett profit. A policy of quality and service had been maintained, whilst reserving only the small percentage of profit essential. Thanks were accorded to suppliers and others for their support. Factory statistics were: Pounds of milk received 78,682,479 (80,555,317 in 1933-34), pounds of butter-fat received • 3,396,394 (3,558,677), average test 4.316 (4.418), Total charges to f.o.b. 2.781 (2.652). Used for cheese-making: Pounds of milk 76,155,320 (78,584,358), pounds of but-ter-fat 3,277,496 (3,461,003), average test 4.304 (4.404), pounds of cheese made, factory weights 8,315,815 (8,825,751). Used for butter-making: Pounds of milk 2,527,159 (1,960,959), pounds of butter-fat 118,898 (97,673), average test 4.71 (4.981), pounds of butter made 140,222 (114,260). Whey butter: Pounds of whey butter 204,303 (228,260), pounds of whey butter per ton of cheese 55.04 (57.93).

UNSATISFACTORY FOR CHEESE. The chairman said the year had again been unsatisfactory as far as cheese prices were concerned. The market had been steady, but at a low ebb. There was a rise about November but prices went back, showing that there was tar too much produce on the market at that time. Supply and demand were the main factors in the market, and either they were producing too much cheese or. the people m Britain had gone off eating it. Considerable quantities of English cheese were sold at from 2Jd to 3d per lb, compared with 6d for New Zealand cheese, said Mr. Burke. When New Zealand produced standardised cheese some years ago it received a bad run on the market, and this poor quality English cheese would probably get a bad run also and go off the market altogether. ■ But it now looked as if cheese was going to be at a good price for the early part of the season. ' Canada had gone back several thousand tons in cheese production and the Canadian Government had decided to subsidise cheese exported by 5s a cwt. Although there had been less cheese last season the price was less also! The directors had decided to make butter from June to August 20 and had sold the output but they could not get away further offers for butter and they considered it wise to go back to cheese. Last year butter prices had been good, one reason being that America had bought larger quantities than for some years, The company would have to undertake considerable expenditure if it were to go in largely for Butter, and The directors considered it better to avoid this expenditure and go back to cheese. The cheese sold since the closing of the balancesheet had realised above the estimate, but there was much still unsold and it was hoped that there would be a fairly large surplus to come. This would be paid as stocks were realised. There had been a great deal of expenditure during the year, said the chairman. The Waiokura factory had to be rebuilt and the Oeo branch had to be enlarged considerably, but this would take the supply for several years to come. A new churn had to be put in at the main factory as they could not use the whey butter chum for making creamery butter. New cream vats would be needed soon.

and the company had a large amount of plant to be kept up-to-date, but the directors would not spend any more money than was necessary. QUALITY OF PRODUCE. Speaking of the quality of the product the chairman said it had been very satisfactory, but it was still imperative to keep up to a high standard, and he appealed for the continued co-operation of the suppliers. The company had taker, advantage of the Government subsidy on work done, and he suggested that suppliers avail themselves of this benefit, amounting to £2 on £lO worth of work. The directors had decided to continue the present system of payment for rqilk, said Mr. Burke. It would cost a lot of money to experiment with payment for milk on a cheese yield basis, and he felt that the company was not justified in altering the method until a new one had been proved better and cheaper than the present system. j A supreme council for the dairy industry had been created, said the chairman, but what it was going to do remained to be seen. The Dairy Board was drawing £70,000 from the dairy industry, and

generally he thought there were too many boards. He would not say that the Dairy Board had not done good work, but he thought it had come too much up against the people who were buying New Zealand’s produce. . Reviewing the balance-sheet the chairman said it was the intention of the directors to reduce the mortgage debentures of £13,200 and the debenture* account of £lO,BOO by a payment of £2500 per annum. In ten ye?rs these liabilities would be liquidated. The habiiy of £14,828 to depositors was also being reduced annually and would eventually be wiped oft. Requisites showed an increase on the previous year, but material had to be bought in advance, and . as the output was 5 per cent, less there i was still a considerable quantity on. hand. ; Wages had increased over £5OO owing to i the need of extra men as the result of the holiday each week. Fuel, power, . boxes, crates, railage and cartage were • less, while refrigerating costs were £7OO , less. Interest increased by £3O because ’ this season they had been drawing 4d , and paying 8d per lb butter-fat, which ; kept the bank account up to the limit. The store showed a profit of £1542 and i this branch of the business was-now m ' a very sound position. If everything were ; sold up they would have the store on , the books for nothing. Tins reflected ■ credit on the management since the reorganisation of the store. The turnover , was increasing. Manufacturing costs were up .14»a. principally because the output had declm* ed. For the past 10 years manufacturing • costs had been gradually going down, but ' they could not expect this to be continued I always. The yield was lower and the

test also was lower than in the previous year. .' The chairman thanked the directors and staff for their support and the suppliers for the co-operation. The auditor, Mr. E. K. Cameron, dealt with the balance-sheet in detail and congratulated the company on its improved position. Mr. R. W, Haseltine asked if the increase in consignment charges of £2OOO had anything to do with the “holding” policy. Mr. G. H. Butler: The consignment charges are £4OOO higher than those of one company I know, and that company produces more cheese. The secretary, Mr. J. E. Crompton, replied that some companies might treat this item differently in the balance-sheet. These charges were not higher. Asked by Mr. E. Gopperth what quantity of cheese had been held the chairman replied it amounted to 30,000 crates and had been taken in at 45s 6d. Ten thousand crates had since been sold. The price was 43s when they commenced to hold. It had since gone up 6s or 7s and it had cost about 3s or 4s a crate to hold the cheese. If they. had put' their produce on the market at the time it was

43s the price would have probably gone down below 40s. In reply to Mr. J. Campbell, who asked what security the bank had for the debenture account, the chairman said it was the same as in previous years and mortgage debenture holders had security on the same footing as the bank. Replying to Mr. G. H. Butler the chairman said the company had refused an offer of 48s for 1000 crates of cheese. It was only a small quantity and would not have made a great deal of difference. Mr. J. Russell pointed out that manufacturing costs had risen l-8d and over the whole output this totalled. £l7OO, or more than the auditor’s statement indicatcd. Mr. Cameron replied that there were a number of small items that had increased which offset the decreases and evidently were not allowed for by Mr. Russell. WORKING COSTS. The secretary pointed out that working costs were not greater but really were less. Even if they had been the same the cost would be higher per lb butterfat owing to the smaller quantity handled and on which the charges were based. Mr. G. H. Butler pointed out that directors’ fees were £lOO higher, and the chairman replied that the fees were now paid after every meeting instead of once yearly, but they were no higher. Mr. C. Henwood considered it would have been advisable to have taken the unsold cheese at market prices instead of 45s &d • The chairman said the cheese had been taken in at various prices, the average being 45s 6d. In answer to a question as to the position of certain loan accounts the chairman said the company’s clients were doing remarkably well all through the slump and were meeting their obligations. Mr. S. French criticised a fall of six points in six days in his test The manager, Mr. W. J. McDonald, replied that such differences were not unknown, but he assured Mr. French the correct test was given. Mr. L. J. Harrop complained that the general manager did not do the testing at Oeo branch. The general manager replied that sometimes the manager had assisted to draw the samples but he himself did the reading of the tests. Objection to water, in the whey was voiced by Mr. Harrop and Mr. J. Russell and the latter moved a motion recommending the instant dismissal of any employee found adding water to the whey. This was carried.

Mr. D. Murphy pointed out there was a tendency to turn over to home-separa-

tion and asked if tire company would receive cream from suppliers. The chairman said if these suppliers agreed to guarantee to supply for the whole season the directors would take the cream, but at present only one or two had gone in for separating, and' it was difficult to organise collections for only a few. Cheese was still the most payable proposition. HIGH TESTING MILK. In reply to ■ a suggestion by Mr. B; Rushin to skim tne high-testing milk and make butter , the chairman explained that the regulations would not permit cream-

ery butter ,to be made under the same roof in a cheese factory. Mr. T, J. Walsh: How much did the banquet, in the Manaia town hall cost? The chairman: £65. - ' ! Mr. Walsh: It cost more than that. The chairman: No it did not. Mr. T. Haworth suggested changing the managers round, but the chairman said the directors saw no reason for changing a manager if .he was giving satisfaction. In reply to Mr. G. H. Butler the chair-, man said there were only a few suppliers who had not been allotted shares; shares would be allotted to them as soon as possible. The election of directors resulted: Messrs. F. Muggeridge 349, A. W.’ King 335 (elected), J. J. Ladders 260. , On the motion of the chairman, who said Mr. Landers had been a, valuable member of the board fc a vote of thanks was given the retiring director. The chairman said that to pack cheese at branch factories would involve the

building of curing rooms at considerable expense and this had been considered unfavourably by the directors. This statement was made in reply to a suggestion by Mr. R. W. Haseltine that freight would be saved by branch factories packing their own produce. - , Mr. E. K. Cameron- was re-elected auditor. The directors’ fees were fixed at the same figure as previously. The chairman’s honorarium was fixed, at £2OO and he was voted' a bonus of £lOO. 7 Mr. W. 6. Webby urged that employees’ wages be not subjected to further cuts. It was desirable to have a contented staff. ■ The chairman said he 'thought wages were ' low enough and he would - rather see them increased if they could afford it ■" Mr. W. B. Brown urged that better

housihg be provided for married employees. The chairman' replied that the directors could not see their way to build cottages at present. Mr. Haseltine: Are you going to "wet the new Oeo factory? The chairman: No, we are leaving that to you chaps. ' ~ ■, x .. A suggestion by Mr. 8., Rushin that the annual meeting be held at night was rejected. ■ , ' ■ \ t The grading figures of the factories were: Central 92.144, Sutherland 91.859, Waiokura 92.101, Kapuni 91.419, Auroa 91.984, Skeet 91.673, Kapuni 91.635, Oeo 91.969. . , A vote of thanks to the women for

providing refreshments and to the staff was carried. Mr. Burke was re-elected chairman at a meeting of directors.