Difficult Farming Year Reviewed

Waikato Independent, Volume XXXV, Issue 3336, 27 July 1935, Page 5

Difficult Farming Year Reviewed

HWAMBEJTOE COMPANY

34TH ANNUAL MEETING BIG ATTENDANCE OF SUPPLIERS A year in which farmers were faced with the difficulties of a drought as well as continued unsatisfactory marketing conditions • was reviewed at the annual meeting of the Cambridge Co-operative Dairy Company in the Town Hall • yesterday. However, with production increasing in the latter part of the season, together with a rise in butter prices on the Home market, the position at present can be regarded as satisfactory in many ways, although the outlook for cheese is not encouraging. The meeting gave many farmers an opportunity to air their opinions on the industry, and the opV erations of the board during the C past 12 months, and a number of .'matters were made by the chairman, Mr W. Harbutt, and the directors, Messrs T. H. Anderson, J. W. Garland, Thos. Robinson, W. T. Duncan, R. D. Fisher and M. Wells. !l ■ ■""' . The attendance was larger than last year, being estimated at about 200. • Also present wore the general manager, Mr P. C. Petersen, and secretary, Mr E. J. F. Kennedy. The annual report and balance sheet as previously published was adopted as read. Speaking to the report, Mr Harbutt dealt with the activities of the company, and said that the board of directors had experienced a trying year. The policy of the board had been to render as much assistance as possible consistent with safety. After protracted negotiation with the Railways Department the directors had been able to secure' a reduction in the rate of 2/- per ton for the.carriage of butter and cheese to Auckland, but the full benefits of the concession would not be seen until the next year's as the reduction only opcrat- * ed from March 1, 1935. Effect of Drought "In the throes of the drought the production of the company suffered heavily, the decline being as much as 2.1 per cent for January ami nearly 27 per cent for February," explained the chairman. "Happily, with the breaking of the drought the production of buttcrfat recovered quickly with the nett result of the decrease for the season being 8.28 per cent. " With the outlook for the cheese market appearing unfavourable the directors decided to stop cheese making a month earlier than last year, which contributed in no small measure to the heavy decrease in cheese manufactured during the year. Whereas in 1034 the output was 3504 tons in 1935 it was 2821 tons, a decrease of 683 tons. This faction was all the more opportune to suppliers as the butter' market was holding well, and they would also have the benefit of their skim milk for pigs." A Firm Outlook Mr Harbutt contended that the indications were that the butter market would continue firm until September when the trend of prices might be influenced by special world conditions, the principle of which- woul'd be the progress of production in those countries supplying the United Kingdom market. The prospects of the cheese market were most unfavourable, due mainly to the tremendous increase in the milk supply .of Britain under the subsidised scheme of the Milk Marketing Board. The bulk of this increase could only go into checsemaking with the result that English factory cheese was being offered °by the Milk Marketing Board at prices from 36/- to 38/- per cwt. These cheap offerings were naturally having . a depressing effect upon the demand for New Zealand cheese. Cheese in New Season The board had given serious consideration to the future prospects of the markets and had 'decided tentatively to postpone the commencement of manufacturing cheese in the new season until September 1. For the same reason the board had decided to withhold the payment of the cheese bonus for the time being, being anxious to see if there would bo any improvement. Should the market decline it was only too apparent that the cheese account would disappear, a fall of only 1/- per cwt on stocks involving a sum of £1075.

Mr Harbutt sjiifl that the expenditure under the heading of dried milk property and -expenditure had now "been eliminated. The remaining assets Tinder, this heading were rill valued, and taken into their respective account.'* at thsfr present-day values, a-id the balance of the expenditure was written •off. The balance sheet now showed only the true assets of "the ' company

and was not overloaded with expenditure on behalf of dried milk which had long since disappeared. The Payouts Referring to criticism of the company's butter payouts, Mr Harbutt assured suppliers that comparing the systems by which different companies arrived at their totals the Cambridge Company would compare favourably with any in the Dominion. The company's figures were based on supply of all grades. Mr Harbutt regretted that the cheese payout had not been as large as was expected, but although costs had been reduced the company was caught in the reaction of the market. The advice of agents had not proved to be to the best advantage. Suppliers' Queries To Mr A. Paton, the chairman stated that f.o.b. sales were all in advance of market rates, excepting the first. two. Mr H. P. Hewitt: Why was the butter on hand taken into the balance sheet below market rates and cheese at full value, when the former market was rising and the latter declining? Mr Harbutt. When taken in, butter was lower at 88/- to 89/-, while since then cheese had dropped. Anyhow this matter does not affect the company's position. Mr J. S. Fisher considered there was a lack of supervision in the company, and suggested that a managing-direc-tor should be appointed. It appeared that the directors had fail"ed to fully grasp all the opportunities that were offering. He fully realised that the board had done good work, but other companies who employed trained men wore difficult to compete with. Advice From Agents Mr W. P. Laurent asked if the information received from agents had been sound. He considered the board had shown lack of foresight in turning down a certain offer for cheese. He also considered the company should have changed from cheese to butter in April instead of May and thus enhanced the cheese payout. Mr Laurent contended (hat the butter payouts were all right, but 'the payments for cheese were unjustified. To Mr W. C. Wallace, the chairman explained that the weaknesses were at the selling end in England. An efficient organisation was needed to look after the producers' interests. Mr Anderson said that as far as agents were concerned the board had some of the best representatives of Tooloy Street. There was no one in New Zealand in a position to improve the selling at Home. Mr C. Pusso asked for comparisons of f.o.b. prices and after hearing them considered the compony as sound as any in the Dominion, g Directors Re-elected The three directors who retired by rotation, Messrs W. Harbutt, .T. W. Garland and P. D. Fisher were reelected unopposed. The directors' honorarium was fixed at £320, the same figure as last year.

Messrs Sanson and O'Meara were re-elected auditors at the same remuneration as last year. It was decided that no interest be paid on share capital for the past year. Before the meeting closed a vote of thanks was passed to the directors and staff. INTERIM BONUS PAYOUT TO BUTTER SUPPLIERS After the meeting yesterday butter suppliers received an interim bonus of approximately £7OOO at the rate of 1.256 d per lb. The bonus to cheese suppliers will be paid next month.