N.Z. DAIRY COMPANY.

Hauraki Plains Gazette, Volume XXXIII, Issue 4442, 19 July 1922, Page 3

N.Z. DAIRY COMPANY.

ANNUAL DISTRICT MEETING.

The annual district meeting of local shareholders of the New Zealand Cooperative Dairy Co., Ltd., was he'd in the Central Theatre on Tuesday morning. There was not a very large attendance considering the number of. shareholders in this locality. Mr. L. E, Cassrels was voted to the chair. Messrs. G. Buchanan, F. C. Hansen, and F. W. Walters (directors), T. L. Hames (secretary), and W. H. Blaheway (secretary of the Thames Valley branch) were present. Mr, Hames said he wished to apologise for the absence of Messrs Goodfellow and Sinclair, who, op account of urgent business, had found it quite impossible to attend. Mr. Goodfellow 'had told him that he was personally sorry not to be able to be present, as he realised that Paeroa was a very important centre. INCREASED BUTTER YIELD. In dealing with the operations of the company Mr. Hames said that during the past season the Output was 18,120 tons of butter, as against 12,600 last year, thus being an increase of 5500 tons. This was accounted for in a measure to the favourable season right through, and also to the fact that the company had the equipment to deal with the increased production. Another matter was the development that had taken place in the area operated by the company. The butter produced in South Auckland had just doubled itself in the past year. CHEESE PRODUCTION. Owing to the number that had ■switched over from cheese to butter the yield of this product was only •4800, as against 5600 tons last year. CASEIN. The manufacture of casein was 485 tons, as against 500 tons last year, teut this did not affect this area, as no casein was manufactured here. DRIED MILK. The total amount of dried milk manufactured was 2000 tons. REVENUE. In spite pif the very large increase in manufacture there was a considerable shrinkage in revenue, brought about by the low prices ruling. The annual turnover was £3,750 000. In order to make the increase of butter production it was found necessary to make additions to many of the factories. This matter of the increase had been foreseen by the directors, who had wisely made the necessary arrangements. SHAREHOLDERS. The company had now some 7568 shareholders, who supplied milk from approximately 200,000 cows. The paid-up capital, including this year’s calls, was half a million poupds sterling. GRADING. Speaking of the quality of the butter, M r . Hames said that the average grade was now 91.54 points for butter and 89.79 for cheese. The Government grade in 1918-19 season was 89% points. The quality had, therefore, increased by 2 points. Hfi attributed this largely to the present grading system and the Improvements made in handling the milk by *!he suppliers. The directors appreciated the assistance given in improving the quality of the butter. Regarding the quality of t!he cheese, the directors bad decided to make a start with the grading system. The casein made this season was the best ever made, and was equal to the French manufacture, which was the best in the world. ADVANCES. The average advances paid for but-ter-fat was 12.008 d. They had begun with a 2s payment, but the fall in the market, had reduced that to 7d. The violent fluctuations had caused the directors many anxious moments. It had been a difficult matter to form any idea of what the market would be. In paying out 2s they had overdrawn £128,000. They had never had such an experience of rise and fall in the market, and the directors had found that they had paid out more than they should have done. This had, of course, to be rectified. WINTER SUPPLY. This was a much vexed question. The directors all realised that to supply in the winter time was worth a great deal more. Tire board had considered the matter, apd had decided that the winter season would be from May 1 to July 31, and the prices would be worked out separately. RISE IN LONDON MARKET. Suppliers would be glad to learn that there was a considerable amount of butter no,t sold when the rise took place- The prices to-day were well up, and there was a fair percentage unsold. Ten days ago there was 23 per cent, to quit. To-day they were getting a good price over Danish’, and he thought that the values would improve. He did not tihink that the prices ruling to-day would rule next Christmas, owing to the fact that supplies would come to hapd from other sources. TOTAL PAYMENT. The auditors were now busy on the yearly audit, and he thought that ths total payment would be. about Is 4d or Is sd. COAL SUPPLY; Dealing with the company’s collieries, he said that they' held 12,000 acres freehold, and 18,000 acres adjoining leasehold Over which they Hehl buying rights. The property was on’y two miles from the Pukemiro mines in the Huntly district A railway line was being constructed past ihe mine. The freehold had cost £2O per acre. The field had been thoroughly exploited, and it was found that there was a solid bed of coal with a seam of from lift 6in to 17ft 6ip. The company consumed 70,000 tons pf coal, and it was an important matter to get cheap coal to lower the manufacturing cost. The cost to-day was 28s per ton, and they estimated the annual saving at £40,000 ip coal alone; The field had cost £38,047 to

date. There had been two deductions made from suppliers, and a further tVid would be deducted. The mine •wohid he ready before the railway, Tii-j main drive was being put in on

the side of the valley and the coal would be ready before the railway, day they were landing coal from the mine at slightly lower cost even by having to cart it two mil-s. It was generally recognised that in opening up a mine a large quantity of coa l was wasted, but in the present case this mine was unique ip the history of mines in this respect. They expected to h,ave the mine going fully next year. BOX FACTORY. The establishment of the box factory had cost £31,000, and the cost per box for the season worked out at 2s. The lowest quotation they had was 2s Bd, plus freight, from the King Country. The saving in boxes alone was something like £25,000, or nearly the price of the capital invested. This was only over a working period of nine months, so it would be seen that it was a remunerative concern to have their own box factory. AUCKLAND BUTTER MARKET. Mr. Hames dealt fully with- the Auckland butter market. He pointed out that the company had no quarrel with any other company. The New Zealand Co bp. Dairy Co. was the only company dealing direct with the retailer?.. Other companies sold to merchants, who sold to the retailers. They had entered into an agreement to sell first-grade butter at a fixed price for standard brands, but some of the hgents put the Opotiki butter up under three different brands and were selling it for 2d a pound less. The consequence was that the company’s sales fell from 800 and 900 tons to 300 tons, so it was finally decided to drop the price and run an advertising campaign. There was still a good deal of cheap butter about, and merchants were cutting the price. He was pleased to say that their sales had gone up beyond what they ha t previously done. All they asked the other companies to do was to refrain from selling to merchants in the autumn. Speaking to a representative of one of the Hawke’s Bay companies, the man said that he was sorry that his company had sold. The bulk of the butter was in the hands of the merchants to do as they liked wPh, and consequently they were making money that the company should get. It would be far better for the dairy companies to meet and fix a standard price. MERCHANDISE DEPARTMENT. The company had found that the merchandise department had grown enormously. It was run merely for the benefit of suppliers, and was purely a secondary consideration, and the company was how restricting purchases as they found it was unsatisfactory and they were rigidly restricting trading; ■ FINANCING DAIRY STOCK. The directors had had to cease making loans on dairy stock, but that did not affect the farmers down this end of the valley, as they had a real good finance company operating here. The Thames Valley Dairy Finance Company was still making advances. ECONOMY. Owing to the slump it was necessary to economise considerably, and every department had been under review and a very considerable saving had now been effected. Many of the buildings were now completed and a saving pf £l6OO per week would be made in this department. INSURANCE. They had been able to save a considerable amount by getting special concessions with an insurance company for which they acted as agents. MR. GOODFELLOW. Mr. Hames went into details! of Mr. Goodfellow's trip abroad and showed, the advantages the company would reap through the business that he had made while in England. He had a'so opened up various markets for the company’s butter. Mr. Good"el low was at Home during the slump and was able to study it first-hand. He considered that there were four primary reasons: Firstly, nobody knew the quantity of butter held bv the Government, and there were all sorts of rumours about the Government unloading it; secondly, there was a delay in the unloading of steamers, and when they were unloaded they came on a falling market; thirdly, there were heavy consignments from Australia, South Africa, and Argentine, and the bulk went on the English market; and, fourthly, one if the greatest factors was through the merchants speculating. There was no doubt that periodically there was an attempt to bare the market. One good point in the lowering of prices was that it had created a habit Pf eating butter in England, and the consumption to-day was right back to pre-war times. Mr. Goodfellow had been successful in his mission to London, and the company was in a much better position to day to deal with the selling of its produce. He had appointed Mr. J, B. Wright as the companys’ agent, and a new system had been arrived at for the sale of the butter. A daily stock and sales sheet was received by Mr, Wright from each merchant, and the prices were fixed. In one line alone Mr. Wright had already saved the company £l6OO, and Mr. Goodfellow was satisfied so far as the results had been to date.

Mr. Buchanan said that the actual loss to the shareholders over the cut in butter price in Auckland was 2s each. In the fall of the year -small companies sold out .their supplies and the merchants kept it for a rise in the winter months. A good many of the companies sold at Is Id to Is 5d per lb. He considered that the amalgamation of the Thames Valley Company had proved a wise one, and a real good thing for everybody. Mr. F. Walters, in addressing the meeting, said that had it not been for Mr. Goodfellow they would never have been organised. He did not think the company would ever sell its output to merchants, and he predicted brighter times ahead for the suppliers. Mr. F. C. Hansen, in speaking, said that the coal mine was one of the finest assets the company had. All the coal mined in the development had heen sold, which was a record for any mine in Australasia. He urged the suppliers to be loyal to the company and give it a chance.

Owing to the big development on the Hauraki Plains the speaker said he was not seeking re-election, but. was allowing his seat to be occupied by a representative from the Plains. Mr. Keys said he cnosidered the method of electing committees needed reviewing, and moved that the present system of electing committees was not sufficiently representative. This was seconded by Mr. Buchanan and carried.

The following committees were elected: Komata Cartage Committee. — Messrs. Hubbard, Killgour, and Morrison.

TirohiaJ Cartage Committee. — Messrs. Shallu, J. Kenny, North, Veale. and Campbell. Old Te Aroha Road Cartage Committee.—Messrs Johnstone, Pippin, and Thorp. Paeroa Factory Committee.—‘Messrs Johnstone, North, Hubbard, Ry all, Vuglar, Cassrels, and Keys. At the conclusion of the meeting a number of questions were asked by various suppliers and answered .by the secretary or directors present. A vote of thanks to Mr. Hames, the directors, and the chairman terminated the meeting. MEETING AT ELSTOW DAIRY COMPANY’S COAL MINE. The annu,al district meeting of the N.Z. Dairy Co.’s suppliers in the Elstow district was held at Elstow ou Monday forenoon. Mr. W. Dale was chairman, and there was a good attendance. Mr. A. J. Sinclair, Assistant Manager, submitted the annual report and Messrs G.eo. Buchanan and F. C. Hansen, directors, also spoke.

At question time explanations were asked regarding the company’s coal mine at Pukemiro.. Mr. Sinclair gave details concerning the expenditure to date, and the estimated saving in the coal bill. At this stage Mr. G. W. Horne, of Eastport Rbad, informed the suppliers that he had taken advantage of the rights he possessed as a shareholder in the company and had visited the company’s coal mine. He was an experienced miner in the old days, and he could assure the supplier?., after a thorough inspection, that there was no coal mine in New Zealand that would be able to work so economically. If the directors M the company had had the placing cf that great seam of coal in position they could not have m,ade a better job of it. It was without doubt one of the finest coal mines he bad ever seen. Mr. Horne then described in detai:s the remarkably efficient methods that were being employed to win the coal. He said that, without a doubt, it would be one pf the finest assets the dairy company would possess, and those people wSip were talking of breaking away did not know what they were talking about. Mr. Horne’s remarks were received with considerable applause. COMPANY DIRECTORS.

Mr. G. W. Horne, of Eastport Road, asked Mr. F. C. Hairsen whether he intended to stand agaip for election as a director of) the company. Mr. Hansen replied that he had given the matter careful consideration. Sb far as the dried milk suppliers were concerned, they had a dried milk committee at Waitoa which had really the functions of a local board of directors. The minutes of the committee meetings -came before, the full Board of Directors, and they had, of course, Mr. F. W. Walters as a director. He said that the Hauraki Plains had a tremendous supply, and ho considered that in fairness to that portion of the territory he should stand down and allow a directon to be elected there. He wished to take the opportunity of pointing out, however, that the directors of the dairy company did not look at matters from a parochial point of view, but did their best for the suppliers as a whole. Personally he keenly regretted that he was proposing to sever his connection with the directorate, as he felt that, 'he could have been of much service to the suppliers with the experience he had gained. Mr. G, Buchanan (Paeroa) stated that as a director of the company he considered it was a matter for serious regret that, a man of Mr. Hansen’s training was retiring from the board. The Hauraki Plains, however, was a growing area, and he had looked with apprehension on the fact that that district had no representation. The people on the Plains fjelt .that, they were entitled to more direct representation than they at present possessed, and 'he considered this point of view justified. M. Hansen remarked that if an opportunity occurred in the future, an.l this might happen owing to the great increase in butter-fat from his portion of the company’s territory, he would have much pleasure in offering his services again if suppliers wished hint to do so. (Applause.)

At the conclusio;. of the meeting a vote of thanks and confidvicc in the directorate and managerni.it wa? carried unanimously.