THE TURUA DAIRY CO.

Hauraki Plains Gazette, Volume XXXVI, Issue 4863, 10 August 1925, Page 3

THE TURUA DAIRY CO.

ANNUAL MEETING. A SATISFACTORY YEAR. The tenth annual meeting of the Hauraki Plains Co-operative Dairy Co., Ltd.’, was held at Turua on Friday last, Mr A. H. Rogers, Chairman of Directors, presiding over about 40 shareholders. Mr Ha,rknes& (Government Dairy Division) and Mr A. Wilson (Bank of New Zealand) were also present. ' ANNUAL REPORT. The annual report for the year ended June 30, 1025, was as follows:— ' “It is very satisfactory to note from the statistics for the past season that there has been a very considerable increase in the supply bf butter-fat over the previous season for both butter and cheese-making, and coupled with this it is also very gratifying to see the improved prices throughout the season for cheese. “The increase in butter-fat supplied for cheese-making over last season was 21,2241 b, and. for butter-making 26,064»1b. In addition to this increase of butter-fat from our own suppliers the Company has received 14,6771 b of whey butter-fat from an outside company fofr manufacture into whey butter. ’ Taking the total butter-fat for cheese, creamery butter, and whey butter for the previous season against the season just closed, this shows an increase of 64,8811 b of butter-fat handled. Notwithstanding this considerable. increase, your Directors are pleased to say that several of the charges affecting the cost of production are lower for the past season than the previous season, most notable among them being the Wages Account, Fuel and Power Account, and Supplies and Requisites Account. “The output of cheese for the season was 463 tons 17cwt *, creamery butter, 48 tons 16cwt; whey butter. 17 tons 18cwt. At the close of the financial year there were 1250 crates of cheese, -21 boxes of creamery butter, and 164 boxes of whey butter still unsold. It is anticipated that the whole of this will be sold by the end of August. “The average advance payment to suppliers for the season is as follows : cheese suppliers, Is 4.2 d; butter suppliers, Is 2.91 d. The balance of £5688 7s 2d from the Working Account will give an additional payment of 2.8 d to cheese suppliers and 2.34 d tp butter suppliers, making the total pay-out for the year Is 7d for cheese and Is 5Hd for butter. These figures are based bn the unsold cheese and butter realising th respective amounts at which they have been estimated to realise. This has been taken in at a conservative value.

“The amount of £540 7<s 2d allowed as interest to shareholdci's at 6 per cent, is equal to practically l-3rd of a . penny a lb butter-fat to all suppliers hi addition to. the pay-outs mentioned above, and this sum will be paid to shareholders at the Annual meeting. “Your directors recommend that the following amounts be paid at the annual meeting: Butter, 2.34 d 'per lb which will make a iinal payment of Is 5%d for the season; cheese, that the payment for the whole season be brought up to Is 6d per lb butter-fat, and the balance when the final realisations come to ; hand.' “The directors again urge all suppliers to bring nothing but the sweetest possible milk pd cream to tne factory, and to do their utmost tb keeip their sheds, and milking machines in the cleanest possible condition, as without this it is impossible for the factory staff to make the highest grade article., “The average grade for the season for cheese wats 91.58, and for butter 91.3. There were 6185 crates of firstgrade and only 15 crates of secondgrade cheese made throughout the season. “Mr R. M. Stevens resigned his position as manager of. the Company in December to take up a position on the. Government grading staff at Wellington, and Mr K. McMenzie was then appointed manager of the Com-.

pany.” In moving die adoption of the report Mr Rogers traversed it at length and explained many points. The company had consigned the wnole of itsi output and the result'had been very satisfactory. The shipping had been v closely watched, and it was anticipated that the whole of the output would be sold much earlier than usual and enable the final pay-out to be made very scon. For balance-sheet purposes the stocks had been taken into account at what had proved about 9s per cwt below the price since received. It was anticipated that the final pay-out would be Is 7.64 d, including share capital interest. Mr Rogers dealt with the working expenses, and showed that a considerable saving had been effected. An increase of 64,0001 b of butter-fat had been dealt with at a less cost in the factory.. When the Control Board assumed control all factories would receive the same price for their product, and the factory jvhich manufactured at the least cost would pay out the best. The question of quality was one that was to be closely watched, in view of the difference in the price to be paid cut for the several grades'. The work of the factory staff was commented on, and a vote of thanks was accorded Mr McKenzie and life staff.

Dealing with the financial state ol the company Mr Ragers said he was very proud .to say that the bank pvei - draft had been reduced by £2OOO, and if the same policy' was continued the overdraft would be wiped out in another five years.

The chairman stated that the auditor had commented oai the firstclass order, in which the books had been kept, and also favourably commented on the financial position, which showed that the liquid assets were £llOO in excess of last year’s, giving an improvement of £2900 on . last year’s figures. After numerous questions had been

asked and .answered Mr W. E. G. Willy congratulated the directors on the very satisfactory state of affairs. It Was gratifying tb note that the factory charges were only £1 Ils 6d per ton, compared with £1 17s in the previous year and £2 during the two yeans before that. Mr Willy dealt at length with several other points, and observed that had the overrun for butter been up to the limit it would have meant £6O more to the suppliers-. Mr Harkness said that the overrun was satisfactory, considering the small output. After the luncheon adjournment there was a short discussion on policy matters. A letter was read from the company’s London agent commenting on the quality of the cheese at the request of the directory. While the cheese sometimes, lacked that fineness characterising the very best, no serious fault'could be found or no difficulty in marketing it. The brand had a favourable name on' the market. ELECTION OF DIRECTORS. The next business transacted was the election to fill the vacancies on the directorate caused by the retirement of Messrs J. Kernick and S. G. Williams. Messr&'G. Gray, S. G. William's, J. Kernick, and F. Burfoot were nominated, and at the first ballot Mr Williams topped the poll and Messrs Gray and Burfoot tied. A second ballot was taken and as a. result Messrs Williams and Gray were declared elected. On the chairman’s motion Mr Kernick was accorded a vote of thanks for his services as director. Mr Kernick returned thanks, and said he was quite content to leave the management in the hands of the directors appointed. Messrs Gray and Williams returned thanks for their election. ’Mr R. S. Cutfield was reappointed auditor. . Mr F. Beck gave notice of motion that the Articles of Association be amended to provide that no directoi retiring by rotation be eligible foi reelection for three years. GRADING. Mr F. Burfoot moved that it be a recommendation, that the grading of milk and cream be adopted. The chairman said that Mr Harkness would later address the meeting, and would no doubt give some valuable information on the subject. The grade of cheese had been raised by the Government grader from 88 points, to 90 for first-grade, and during the past season only 15 crates out of 6185 had failed to get first-grade points. The matter Was discussed at length, shareholders pointing out that flavours were more often caused by weeds than by anything else. Water 1 was also a factor.

Mr Harkness said he wished to congratulate the company on its splendid year. The question of the grading of milk was a very deep one. It was very hard to tell what caujsed flavours in milk. He had gone round the district and had been surprised to learn that the milk had graded as well as it had, considering the amount of mud and weeds. However, there was nci excuse for dirty machines. Water, and electric power for heating it, was very cheap and should be used. It was of the utmost importance to every supplier that a superfine milk be supplied, as when the Control Board assumed control the product would be paid for on quality. Feed flavours with the exception of turuipp could be overcome by pasteurisation, but much pasteurisation spoiled the body. It was not fain to fellow-suppliers to bring second-grade milk, and he could not understand any opposition to grading. It was a step in the right direction, and one that would never be regretted. His department regularly received reports on the cheese graded, and he could not remember any faults in the company’s cheese except openness, which would be ’overcome by pasteurising at a lower temperature. Tbits would be possible if there was less feed flavour. He would urge everyone to cease taking hot water from the factory for washing cans and machines, as by the time the cans reached the farm the water was almost cold.

The factory manager pointed out that milk could become tainted through coming into contact with contaminated air blown from a distance. He endorsed Mr Harkness’ remarks in regard to the use of water from the factory, and said the inspection of dairies was also worthy of a trial. The satisfactory grades obtained for the cheese meant a lot of extra work in the factory and . extra, expense to the company when obtained from poor milk. The bad flavours sometimes came, out again (between the grading and the marketing of the cheese;

x The motion to adopt grading was carried by 32 votes to 2.

The question of ceasing to supply hot water at the factory was- discussed, but in view of the fact that some suppliers had not adequate supplies of fresh water on their farms •no change was made, though several farmers pointed out the necessity of using hotter water than was obtainable from the factory. Votes of thanks to the factory inanager and staff, and to the clerk, the chairman, and directort, terminated the meeting. The customary annual social was held in the evening.