MELLS DAIRY COMPANY.

Hawera Star, Volume XLVIII, 13 September 1924, Page 5

MELLS DAIRY COMPANY.

ANNUAL MEETING. About thirty shareholders attended the annual meeting of the Mells Dairy Company yesterday, Mr C. J. Hawken (chairman of directors) presiding. The annual report stated: Throughout the past season cheese has been manufactured, the quality of our product being of a high standard. Unfortunately, in common with other companies, a policy of holding our cheese at Home was adopted, which has affected our pay-out for the season to a certain extent: At the end of the financial year we have paid out Is 3d to February and Is over March, April, May and June, and. the balance now .standing to the credit of appropriation account will enable the payment over the whole season to be brought up to Is 3|fd. Our unsold cheese comprises 2631 crates, and for balance-sheet purposes this has been estimated to realise 80s on the London market. We feel sure that,this estimate will be exceeded, enabling a further amount to be added to the season’s final payment to suppliers.

The statistics showed that 10,584,214 lbs of milk, with an average test of 3.92, and representing 415,4391bs of butter-fat, was received. The amount pf cream received was 30,0131b5, representing 11,2121bs of butter-fat. The total charges, including repairs and depreciation to f.Q.b. steamer on butter and cheese was 4.73 d.

For cheese-making 10,076,5931bs of milk, with an average test of 3.9 and representing 393,6661bs of butter-fat. was used. The amount, of cheese made was 1,049,9251bs and the amount’ cf milk to a pound of cheese 9.591b5. For butter-making 507,6211i.s of .milk (21,7721bs of fat) and 35,7101bs of cream (13,901 lbs of fat), were used, making 42,4561bs of butter. From one pound of fat 1.190 lbs of butter were made.

The chairman, in moving the adoption of the report and balance-sheet, referred to the climatic conditions experienced during the season, and after having a setback during the dry period the company had had a marvellous wind-up. The company had, on the recommendation of the whole of the suppliers, changed over from butter to cheese and had consigned their produce. Their policy was to consign., and they should stick to it. • As in the case of other companies, Mells had decided to store their cheese and put a reserve upon it. but the mistake lay in putting too high a reserve on it. He considered that the reserve should have been 90s. The mistake -made by the company was that they dumped about one-third of their output on the market in one month, and that gave the speculators at Home an opportunity to play with the produce. They could could not be blamed, for everyone would do the same. It was at this end that the remedy should be found: Mr Hawken went on to speak of defective storage by the agents, and said that it should have been specified that the produce should he put in cold, not cool, stores. The result of defective storage was that the cheese went off colour and a large quantity had had to b& sold for 82s 6d.

Probably if the company had stuck to butter, continued the chairman, they would have come out just as well as by changing over to cheese. Sir Thomas Clement had said there would be little difference between butter and cheese, but the majority of the suppliers had voted for cheese Nobody could foresee which was going to be the better. The enormous increase in the amount of butter imported into England had had -an important effect. The increase in the importations last year amounted to about 165,000 cwt. more than any other year. No man, even in the trade, could have known this enormous increase would take place. Evidently the people at/ Home were getting the taste for butter and were eating more. Probably a different clasg of people were now eating butter to the class that ate it ten years ago. The expenses of the company were very high, but it was hoped to be able to reduce them now that they had the maangement under one roof. “I consider, we must look for any increase in profits to the farm,” said Mr. Hawken. The probability was that prices at Home keep. at a faillevel, but extra profits must come from the farm by good management, keeping good stock and culling heavily. Anyone going to ''the sales would see that the heifers were in poor condition. The cows were as a rule not kept in the condition in which they should be kept. Many farmers were losing money wholesale because they were keeping 50 cows where perhaps they should keep 40. The company had made an arrangement with the Whakamara suppliers to buy them out and the arrangement should be satisfactory to them. Some of them were not satisfied, however, and a few had refused to take the new shares allotted They had attended the meeting, although he did not know how they voted, and now they had backed out of the deal. This had placed the company in an awkward position, and there would have to be a redistribution of the shares. At present 324 of the new shares were not signed for, but some of these, he thought, would be taken. He did not think any of this share money would be called up. About 740 crates of cheese remained to be sold, of which 200 crates 7 were upon the water. The 500 crates at Home were expected to realise about 955, which must be considered a satisfactory price. In conclusion, the chairman extended his thanks to the manager, staff and secretary for the good work they had done during the year.

GENERAL. The secretary, in answer to a question. said that shrinkage had in no case exceeded 4£ per cent., and it went as low as a little over 3 per cent. Mr. Richardson said that if a good offer were made he would favour its being accepted. He did not think that it was wise to stick to the one policy to consign always. Mr. Herbert asked if they had any offer at the beginning- of the season which would return Is 7d over the whole season. The chairman replied that there was a lot of misapprehension with regard to the offers received. Suppliers also made a mistake in believing that if one company got a good offer their own company could avail themselves of a similar offer. This was not the easa. He had never heard of an offer of 10 l-8d for cheese from a certain firm He was quite willing to sell to-day if the suppliers said so. They had sold their butter for August for Is 7 l-4d. Last year through selling early they had lost over a penny a pound.

In reply to another question, the chairman said that three shareholders had not. signed up for the new allotment of shares. It was not, in his opinion, advisable to give them a. certain time to accept or refuse shares. There was no possibility, lie thought, of liability for the shares which, in any case, were preference shares. The secretary stated that J.O tons 2 qrs of whey butter had been sold at Is 4d f.o.b. to December, the balance being consigned. They had lost Hd by consigning, as compared with pre-

vious sales. The 76 boxes at Home unsold were expected to r bring good pi-ices and bring the level ..of the whole up to about Is 4d. They had au offer of Is 4£d for , whey butter already made. The amount was seven boxes. . r Mr. Bartlett stated that consignment charges (about, 3fd) were too high. About a penny went in freight. Mr. Hawken ; referred -to'-the coal bill which he said was too high. . Economy could be effected by haying . all the business under one roof. ‘ ' : The manager said that the new boiler and stack was saving coal. A supplier was of opinion that-- the strikes had increased the coal bill, and coal had had to be brought by lorry from Wanganui, motor freight on' this account amounting to over £43 ; ' , . The chairman stated that , he.: had...: consistently advocated having .a. large supply of coal on hand in additional storage bunkers. The chairman, replying to Mr. Ber-= er r j 3 bhat i£. _the unsold cheese realised 94s it would mean an extra -2d per lb bringing the total up to Is 4|d. • . to a who asked it the wages bjjl were not high compared with other companies,' the chairman stated that wages w;ere scheduled ~ in the award and a certain number of men were necessary. Mells had to pav above the schedule to get nieni The report and. balance-sheet were adopted. i>- u S ' S i rs - ® Bickford and .1)7 S. Kichardson were elected to vacancies on the directorate. Mr. G. H. Quinn being the other nominee. . - The chairman’s honorarium was fixed at £SO and the directors’ fees at lUs.. ...... It was decided that all suppliers eri- ’ deavour to have their milk at the factory by 9 a.m. each day. The meeting decided that no interest be paid on shares. ... The chairman and directors were ac- • corded votes of thanks for their services, and the meeting terminated,