SUCCESSFUL DAIRYING.

Waikato Times, Volume 114, Issue 19011, 31 July 1933, Page 9

SUCCESSFUL DAIRYING.

TE AWAMUTU COMPANY. STRONG FINANCIAL POSITION. ' SUPPLIERS’ ANNUAL MEETING. ReAecting in a large measure the productive fertility of a wide distriot surrounding Te Awamutu, the Te Awamutu Co-operative Dairy Company, Ltd., has again experienced a highly successful season. Operations were extensively reviewed at the annual meeting of supplier-shareholders in the Town Hall, Te Awamutu, on Saturday. Mr C. M. Alexander, chairman ot directors, presided over an attendance of over 200. Commenting on the report and balance sheet, which have been published, the chairman said the steady growth of the company must be a matter ot satisfaction to every shareholder. For some years there had been no active canvass for supply and it was particularly pleasing to the directors to And that the policy and methods of the company evidently made a strong appeal to new settlers In the district. After drawing attention to the unsatisfactory prices duritjg the season, Mr Alexander said, although the market had recovered slightly it could not be said that prospects were very encouraging. The position was much complicated by the growing desire ot agricultural interests In Britain to impose quota restrictions on Dominion produce. At present this policy would be disastrous, and the Dairy Board had almost unanimous support of the industry in its attempt to prevent the quota system from coming into operation. After referring further to quotas and prospects the chairman remarked on the proposal to increase the authorised capital of the company. So long as supply increased as It had done they must be prepared to room for new shareholders. They were up to the authorised limit now, and had deferred making allotments for additional shares until they had placed a proposal before the meeting that for all additional supply fully-paid shares should be allotted each year. New suppliers would take up their first allotment on the present basis of a £1 share fob each 1001 b butterfat, but In subsequent years fully-paid shares would be allotted to them. Favourabla Pay-Out. On the manufacturing aide of the business costs had been kept as low as possible, but the alteration in the exchange rate had of course had a very adverse effect on Indents. The payout for the season compared favourably with that of companies who had done a consignment business. Several companies which had sold considerable quantities of produce f.o.b. had done well and received a good deal of attention In the press, but on the other hand there were companies which sold butter f.o.b. at 8d per lb, when lOd per lb was offered some two months later. Little was heard ot those transactions. The board’s policy had been to take the safe course of consigning and accepting market values: Though the polioy did not produce any spectacular results,'either in gains or losses, over a period of years it was certainly safer. An exhaustive survey of the company’s Anancial position was made by Mr A. J. Sinclair, secretary-manager. He pointed out that the company made no deductions for share capital and every supplier’s share was worth 20s in the £l. Over Tub past eight years the company had advanced £24,000 In cash to suppliers, and had written off only £3OO in bad debts. To date 4844 shares held by suppliers, who had given up dairying and had paid up to £2522, had been resumed at 20s in in the £i on the paid-up value. Additions to the plant, the principal of which were a churn, boiler and deodoriser, valued at a total of £2074, had been made during the year.

Referring to the item of sundry debtors, £27,329, Mr Sinclair said the company had never bad such a large quantity of unsold butter. On May 31 there were 5250 boxes unshipped and 11,000 boxes either aAoat or just landed.

Slnolalr Sohem® Commended. Mr G. J. 'Howcroft complimented Mr Sinclair on the determination he had evinced regarding his butter stabilisation scheme. It was very gratifying to know that the scheme had been so enthusiastically received by the industry. At 'Mr Howcroft’s suggestion the company’s appreciation of Mr Sinclair’s efforts was recorded in the minutes.

Asked why the company’s butter was not getting shipped more rapidly, the chairman replied that all shipments were regulated by the Dairy Board, and the company had no control over the matter. Through the storing of produce the company’s costs had largely increased. Mr Sinclair pointed out that what was lost by storage charges might be gained by more even prices over the season.

Mr L. Day suggested that the company could profitably introduce a trading department, to which the chairman replied that the company had been very fairly treated by Te Awamutu trades people and did not wish to come in conflict with them. He hoped, however, that a better quality and lower price would be obtainable for rubber ware in the future.

The report and balance sheet were adopted. The following resolution in connection with the share basis of the company was carried:—“That the nominal capital of the company be increased to £35,000 by the Creation of 'additional share capital bf the amount of £IO,OOO, divided into 10,000 shares of £i each, such shares to be issued as ordinary shares, ranking ns to dividends and as to distribution of capita] in the event of the winding-up of the company pari passu with the ordinary shares in The existing capital of the company." Mr G. 'O. .Tourdain was re-appointed auditor at the same remuneration as last year.

The directors’ remuneration was fixed at £l Is per meeting and the chairman’s honorarium at £75 per annum—the same as last year. A mol ion was passed urging the Dairy Produce Board to use its best

(Continued in next column.)

endeavours to find new markets for dairy produce. Messrs G. E. Churches ana T. Hastings were re-elected to the board of directors, Mr G. J. Howcroft being defeated. q’he meeting closed with a warm vole of thanks to the staff.