DAIRY FACTORIES.

Hawera Star, Volume XLVIII, 31 July 1924, Page 7

DAIRY FACTORIES.

STRATFORD. ANNUAL MEETING. The annual meeting was held on Monday, at Stratford. The chairman of directors (Mr. Fi Hanford) presided. In moving the adoption of the report and the balance-sheet, the chairman pointed out that the average pay-out for last season had amounted to 18.68 d per lb. for butter, a further payment oi 2d was made in October, and 1 5-8 d in December, bringing the total up to 21.24 d, which must be considered satisfactory. The season just concluded had seen a further remarkable increase in production, chiefly accounted for by the wonderful autumn. This year they bad handled 2,077,7001b5. of butter-fat as against 1,915,2401bs the previous season, an increase of 162-,4601b5, or 8.4 per cent. Of the total amount handled by the company 58.4 per cent, was made into cheese and 41.6 per cent, into butter. It was interesting to note that 43.1 per cent, of the butter was made from home separated cream. This

branch showed an increase of approximately 33 1-3 per cent., a very satisfactory position. The quality of their butter and cheese, he said, had been of a satisfactory nature, the grading points being as follows: Creamery butter (all first .grade), 93.25 points; whey butter, 86.79 points; Stratford factory’s cheese, 90.03 points; Toko factory’s cheese. 89.97; Huinga cheese, 86.69; Douglas cheese, 90.03. Turning to the financial position the chairman said the company’s affairs* Avere eminently satisfactory. The soundness of their position was reflected in the small interest bill (£6O in all) and from the fact that few shares had been issued. Recently the directors had purchased a house on a half-acre section adjoining their own property on the Cloton Road. Alterations and additions also had been made to the office staff and furniture. The cost of manufacture in so far as

butter was concerned has fallen slightly. The actual cost of manufacture for butter per lb. of butter-fat, all charges to f.0.b., worked out at 2.47 d as against 2.5 d last year. For cheese, the cost Avas 3.43 d as against 3.8 d last year. Taken in conjunction with the big increase in production, this was most satisfactory. There was no question that the rennet used last year shoAved a A r ast improvement on previous years, and as a consequence much less Avas used. When stock was taken 4481 boxes of butter Avere taken in at estimated ruling rates ; 2375 boxes were valued at 162 s landed, and so far they ha<f word of produce on one boat, the Otaki, which realised 188 s; to 204 s for the 1156 boxes on board for salted and unsalted butter respectively. Out of 19,264 crates of cheese sent to the works, 10,187 crate s had been sold as per account sales; 4252 landedcrates Avere estimated on cabled advices; 1972 crates afloat were estimated at 80s landed; and 2845 crates were taken in at 6-Jd fio.b. So far one boat Avhich had 594 crates on board, had landed crates Avere estimated on cabled per cwt. It Avas therefore evident that there wa s every prospect of quite a good average pay out for the season. Matters had been going very smoothly in so far as the staff was concerned, and it had always been a pleasure to be associated with their worthy secretary (Mr. Fastier) and the manager (Mr. McElroy), and he felt the Stratford Company was particularly fortunate in that respect. Some discussion ensued upon the item £2590 paid as exchange, various shareholders commenting upon the high cost of £2 per cent, charged. It Avas suggested that the item might be reduced by the company importing slag and other Home commodities fo r suppliers. On being asked to giA r e his views upon the matter. Mr. J. B. Richards said the explanation was to be found in the fact that in New Zealand people were more than living within their incomes. It Avas, therefore, clear that a considerable surplus had accumulated in clearing houses in London. He suggested that all that could be done at present would be to endeavour to reduce export charges. In view of the reduced freight charges, Avhich had reflected a reduction over all produce exported, and the fact that manufacturing charges had been lowered, he thought the Stratford Company Avas in a very good position. The secretary mentioned that, roughly, freight charges had increased 100 per cent, since the Avar. Mr. Jamison moved that it be a recommendation to the directors to keep separate accounts in respect to cheese factories, each factory to stand its own cost of running and have its own payout. Mr. Toms seconded the motion. Mr. J. B. Richards, speaking against the motion, said it appeared to him a direct denial of the principles of coop eija titan {upon Avhilch the Straflford Dairy Company was founded. If they were to apply the recommendation to one factory, why, he asked, should they not carry the process further and disregard the co-operative principles altogether? He emphasised that there should be a. certain amount of give as well as take in co-otierathe undertakings. The moving of s uch a motion Avas regarded by Mr, Richards as a dangerous proceeding to embark upon. After others had expressed their opinion, Mr. Jamison said in reply that in the first instance each branch had been built on its oavii, and stood on it's own. Hence the spirit of co-

operation was never there originally. Since the pooling scheme had come about, the spirit of co-operation had been found, and it was costing Huinga suppliers £6 10s in consequence. Douglas suppliers had been similarly affected, but not to such a great extent. On the motion being put it was decisively defeated. A vote of thanks and confidence was accorded the directors. Votes of thanks were also carried to the chairman, the outgoing officers, the staff and the press.

A t a subsequent meeting of the directors, Mr. Frank Ranford was re-elected chairman.

RAHOTV. SEVENTEENTH ANNUAL MEETING. The annual meeting was held at the Rahotu hall on Monday, when Mr. W. C. Green (chairman of directors) presided. The annual report congratulated shareholders on the result of the year’s working and the position of the company. The quantity of milk handled and cheese made again showed an increase over last year. On closing the books for the year there remained to the credit of profit and loss account a sum of £6845 5s 6d, after providing for interest on fully paid-up shares at 5 per cent, per annum. It was proposed by the directors to pay at the annual meeting a further 2d per pound butterfat for the month of November and 3d per lb bntter-fat for the months of December to May inclusive. This would absorb £4657 5s 4d, and as soon as the cheese on hand was realised a further penny per pound butter-fat over the

whole cheese-making period Avould be paid, and this would absorb £2027 15s 6d, making a total payment of Is 7d per pound butter-fat for cheese milk during the year, and leaving £l6O 3s 6d to be carried fonvard or otherwise dealt with. The enlargement and renewal of the factory and plant was carried out as proposed, and the directors had extinguished the old reserve fund by writing the amount, £2073 17s 2d, off the cost, the Avhole freehold property Avith buildings, plant and dwellings standing in the balance-sheet at £7695 14s l(kl. The “White” lorry had again shown a substantial balance on the working account. This had enabled the cost of the lorry to be entirely written off, and a sinking fund of £95 7s Id to be created

Statistics for the year ended May 31. 1924, Avere as folloAA's: Milk received (cheese 12,196,0341 b., butter 288,9841 b.), 1.2,485,0181 b.; cream receh-ed, 18,3141 b ; butter-fat (cheese 480,280 lb., butter 19.0321 b.), 499,3121 b.; average test, 3.95; cheese made (sale Aveights) , 1,250,2261 b. ; cheese made per lb. butter-fat (factory Aveight), 2.67; AA'hey butter made, 30,8361 b.; creamery butter mad*, 16,164, in addition to 55611 b. butter-fat in cream sold to Oaonui; average grade: Whey butter, 85.20; creamery butter, 89.15; cheese. 90.42

In moving the adoption of the report I and balance-sheet, the chairman 'said the pay-out was not quite up to what it wag last year, but that applied to the majority of factories. However, it must be considered satisfactory. They adopted the policy of selling whenever a satisfactory price A\a s offered. Owing to the scarcity and high cost, of fuel, the directors had installed electric motors, and though it wa s too early yet to judge correctly, lie thought the electrical current Avould be more economical. Mr. Q Gibson said that the supply had increased during the vear bv 389.6401 b. of milk, exclusive" of that sent to Pungarehu and Oaonui early in the season. Cream had increased ‘bv 19021 b and butter-fat by 2765 lb. The test had been loAver by .1. They had manufactured 182,4061 b. more cheese anj 46841 b. more whey butter. The grade had, however, been slightly loaver, Avhey butter being .56 less and creamery butter .37, whilst cheese had been .5 higher. He strongly defended the attitude of the company in oAvning its own lorry, and thi s had kept doAvn the price of carting. Mr. Fischer pointed out that in 1922 ziooQ-tS 6 amounted to £421 and Avages to £-28, Avhereas this year cartage Avas only £l4l and wages £277. The chairman said that this was due to the fact that cartagd had been reduced from 32s 6d to 22s 6d, and the increased wages Avere due to the Taranaki County Council’s alterations at Pitone hill, which hot only limited the load, but also compelled them to cart some produce Ana Eiltham. Mr. W. Morgan considered that the lorry had shoAvn a very satisfactory, profit for the year. 1 The report and balance-sheet were adopted. INCREASING SHARE CAPITAL. A motion in the direction of increasing the share capital from £6OOO to £BOOO Avas carried. ELECTION OF DIRECTORS. For the three vacancies on the directorate, the election resulted in the return of Messrs G. Prosser, W. Butler and A. F. Chapman. • ’