OMATA DAIRY COMPANY.

Taranaki Herald, Volume LXVII, Issue 16505, 5 August 1919, Page 8

OMATA DAIRY COMPANY.

ANNUAL MEETING. Tho annual meeting of the Omata , Dairy Company was held on Saturday, ■ Mr. J. TV. iM'Koe (chairman of direcI tors) presiding over a good attendance i of suppliers. i The annual report and balance-sheet ! stated that the balance to the credit 1 of the profit and loss account was £21)73 : 4s 2d, and tho. directors had set aside : £567 10s for. depreciation of tho new : factory and plant, horses and carts, : etc., in addition to £ll3 18s transferred ! to reserve, leaving a balance of £2291 . 16s 2d, of which £325 19s 7d was held ! in suspense pending the settlement of l the equalisation fund established by the i Government by deductions from export ! shipments. Of tho £1955 16s 7d renmin- ! ing, the directors had; already distri- j ; buted Id per lb. butter-fat over the sea- | ’ son’s supply, and proposed a. further ! ; similar payment at the annual meeting ■ which would, total £I6OO 12s lOd, and ! leave to ho carried forward £355 3s 9d. The 1917-18 equalisation fund had not ! yet been wound up, and a. further pay- ‘ ment out of this fund bad. yet to he ro- , ccivcd, but the amount was uncertain.

As shareholders would he aware an agitation had been in progress for some t'me against the equalisation fund levy on the past season's butter, and the directors hoped that a very substantial refund would he made in respect of this deduction from nil butter companies, the levying of v Inch was most inequitable. During the year casein plants had been erected and worked at the main factory and al Oakura, and although only a short, season was possible, 2d per lb, butter-fat was paid for the skim milk, and £79 10s fkl written off tho. buildings and plant. The price obtainable for next season was not definitely settled, hul was expected to be 3d per Ih. Negotiations entered into with other factories to equip a co-operative drying factory had, unfortunately, not been successful enough to enable it to be carried through for the coming season, but it was anticipated that they would ho successfully completed in time to enable this and other companies to obtain in the following .season the full value of the casein produced, by drying and marketing it on co-operative lines, and this would very materially increase the price which can ho paid for the inilk. Jl'he directors had mot the suppliers at Korn and, if a. sufficient supply of skim-milk for casein can be assured, were prepared to instsil a plant there also, and thus enable all milk suppliers to obtain the full value of the whole of their milk. ‘ It was also intended to make butter-milk casein, as the directors were

advised that a much improved monetary return could he obtained for buttermilk in this manner, which would assist in reducing the cost of manufacture.

The chairman, in moving the adoption of tlio report, stated that the reason the directors proposed that the balance of £355 3s 9d be carried forward was that there were still further amounts to bo received out of the equalisation funds of the past two seasons, the amount being uncertain. As soon as the money was received it would ho added to the balance, and such further distribution made, as the directors thought fit. These amounts wore entirely independent of the result of the agitation now in progress for the equalisation fund contribution to be mot out of public funds, and if this agitation wore successful, the refund of the. amount would be equal to a further Id per lb. butter-fat at least. The, over-run for the year was very disappointing, and bad' it kept at last year's figure it would have meant approximately another Jd per lb. butter-fat being available for distribution. A summary of tho actual payout showed that 1s -lid had already been paid, a further Id was payable that day, making Is 5Jd, with a further payment to come, in addition 2d had been paid for milk supplied for casein. The directors’ endeavours to get a definite offer for next season’s casein had so far failed and as late as yesterday the casein company’s manager stat. cd that he could not make any definite offer except for a three years’ contract. This, for reasons explained in the report, the directors do not desire to accept, as it was against the interest of the suppliers to tie up the casein for this period, as next season should see tho. co-operative drying factory in existence and a much improved return will then be assured.

The average tost was considerably higher at the factory and creameries this season. The provision of the casein plant, etc., cost £6lB 4s 7d, the Freezing Company’s shares absorbed £575, the Box Company’s shares £45 10s, the completion of the new factory cost £458 Is 9d, making a total capital expenditure of £1696 19s 4d ; against winch was depreciation £647, transfer to reserve £132 13s, capital paid up £96 Os 7d, a total of £875 13s 7d, leaving a net capital expenditure in the year of £B2l 5s 9d.

The joint and several guarantee given by the directors was necessary to finance the immediate payment of the Id now -.being distributed, and to provide for further expenditure if necessary to instal a casein plant at Kdm, etc. The arrangomont for advances against butter . in store wore very long delayed last season, and this reduced the early pay out for milk and also greatly increased the cost of interest for the year, but as the arrangement now made for advances held good until June, 1920, the arrangements made by the directors with the ■ bank would enable a pay-out with a good milk supply of about Is 4d per lb. but- , tor-fat from the start of the season, in addition to from 2d to 3d for casein, a total of about Is fid straight out, and the directors considered that this would be a very advantageous arrangement for shareholders and better than had ever been done in the past. After considerable l discussion, during which several suppliers criticised at length the working of the company’s concerns, the report and l balance-sheet wore adopted. For the election of two directors in l place of Messrs. AA'atson and Spence, ! who retired 1 by rotation, three noniina- | tions were received, viz., Messrs. WatI son, G. Green and A. Smith. A ballot | resulted in Messrs. Smith and Green being elected. | Mr. C. T. Mills was re-elected auditor.