HAURAKI DAIRY COMPANY

Hauraki Plains Gazette, Volume XXXIX, Issue 5314, 17 August 1928, Page 4

HAURAKI DAIRY COMPANY

VERY SATISFACTORY YEAR. ANNUAL MEETING. The annual meeting of shareholders of the Hauraki Plains Co-opera.tive Dairy C 0,., Ltd., was held at Turua on Wednesday la,st, the chairman of directors, Mr A. H. Rogers, presiding over about 40 suppliers. ANNUAL REPORT. The annual report was read as follows :— “Although the long spell of dry weather had a serious effect on the supply of milk from January cinwa.rds this has been somewhat compensated for the higher values obtained for both butter and cheese over.the previ-

ous season. “The output during the year was 521 tqns 3cwt. of cheese-, 59 tons 13 % cwt. of whey butter This shc.ws a decrease as compared with last year of ,100 tons, in the case of cheese, equal to 16 per cent., whilst in the case of creamery butter .there was an increase this season of 8 tons 9cwt., equal to 13% per cent, “It is satisfactory to note that the

grading of cheese has been of a standard high enough to give' the company third place on the list in the Government grading averages for .the Auckland Province for the Handley Shield, being 92.673, while the average grade for creamery butter ha“ been 92. 35. This again reflects great on the. manager, and factory staff, and also cn the suppliers for the. quality of the milk received at the Factory. “Your directors have b'een pleased that it has been possible-, during the ■ past season, to have made the average advance payment of Is 6d! per lb. of butferfat. to cheese suppliers for every month' of the year The average payment for butter has been Is 3.77 d per lb of butter-fat. “The estimated balance o/f £6746 will enable a final payment to be made to cheese suppliers of 3d per lb. butter-fat. and to. butter suppliers a further payment of 2.23 d per. lb,, and an additional farthing for dirOet delivery, making a total payment to cheese suppliers of Is 9d, and to butter suppi'ers Is 6%d for the whole season. In addition, six per cent, interest will be paid on all phid-up capital, being over one farthing per : lb butt.er.-fat to cheese, and butter suppliers. This, added ito the: payments a z s above, make's a tota.l cash payment to che.ese of Is 9%d and to, butter Is 6'%d. “Your directors recommend that at 1 the annual meeting a progress pay- ‘ ment of 2d be paid to both cheese and butter suppliers, together with share capital’ interest at 6 per cent. The balance will be, paid out immediately ; final realisations come to hand. 1 “The retiring directors are Messrs ! G. Gray and S. G. Williams, who rd-

tire by .rotation and are eligible for re-election.” The- financial statement showed that the paid-up capital was £lO,-701 7s. The- assets of the company totalled £22,494 3s Id, which included 1 £6160 12s 5d for cheese and; .butter not yet sold. The amount paid to suppliers fc.r milk and cream w.a,s £39,854' Bs-2d', and to tithe: N.Z. Cooperative Dairy Co. fo;r, whey cream. £lOOB 17s 2di Factory charges absorbed £5178 16s Bd, office expenses £438 4s lOd, general expenses £145 9s

lOd, income tax £27 0s 9d, repairs and maintenance £127 12s 7d, grading, £64 9s Id, ,nates, insurance, and interest £291 17s 9d, charges to, f.o.b. £ll9l 5g 4d, depreciation £576 5s lid, interest to shareholders £617 8s 6d, and Control Board levy £BB 14s lOd. The- value of the cheese sold oy a.waiting sale was; £43,683 7s 8d; butter £9247 12s lid, and whey butter, £3186 13s. The factory statistics for the season 1927-28 were shown as follows, with the figures for the previous season ‘in parentheses:— Cheese. —Pqundfc of milk received, 11,489,902 (13,698,490) ; lb butter-fat, 435,173.3 (519,337.8) ; average test. 3.78 (3.79) ; yield of cheese to milk (factory weights), f).B‘P’ (9.84) ; yield of cheese to butter-fat (factory weights), 2.6825 (2.6805). Cheese made 1,167,3811 b ; equal to 521 tons 3cwt 51b (1,39’2,1101b ; equal to 621 tons 9cwt 381 b). Butter., —Pounds of cream received, 276,859 (241.367) ; lb butter-fat, no,060.6 (94,502.1) ; average test, 39.75

(39.15) ; over-run, 21.46 (21.41) ; Creamery butter made, 133.6821 b ; equal to 59 tons 13%cwt (114,749i1b ; .equal 'tp. 51 tons 4'%cwt). Whey Butter,—Founds of wlhey but-ter-fat, Hauraki Plains Co., 20,570 ; ('23,408.4) ; lb whey butter-fat purchased.. 23,327.6 (26.207.8)’. Whey butter made, 53,3121 b ; equal to 23 tons 16cwt (60,5921 b ; equal to 27 tons lewt). Yield of whey bu.tte.r-fat recovered from every 1001 b of butterfat, supplied' for cheese-making, 4.72 (4.50).

Prior to moving the adoption of the report Mr Rogers explained various details. He pointed o,ut that last, season the unsold produce had been sold for £3142 Is lid more than, the Control Board ha.d estimated. This had resulted in the: payout for last season, being brought to Is 5 2-5 d for cheese and Is 4’%d for. butter. The present year was one of the: most successful years in the history of the CompanyPrices had been very good, and thecompany was able to make one: of the highest payouts in, the Auekla.nd provnee. He had not heard 1 of any company paying c ( ut more; Though the quantity had fallen off on account of the dong spell of dry weather, the prices realised had meant that, the total sum paid out was in excess of previous years. The working costs had been satisfactory, and the statistics were very satisfactory indeed. The quality of the company’s output was very gratifying, and the factory manager had mentioned that it was e.nly .the supply of two or three farmers not being as good a,s it might have been which had prevented the

Hardley Shield being won. Dealing with the pay-out. Mr Rogers explained that ma.ny factors had contributed. Efficient manage-

ment. prompt shipment, and reduction in interest to the bank were

factors. The first few months’’ make had been sold outright, but it. was

dciibtfnil whether this had been an advantage, personally, he thought, that there would have been no difference if the produce had been consigned. Tlie latter part of the season’s produce had been consigned and satisfactory prices had been secured. The fact that produce had been sold outright had meant that the cash was received promptly, with the result that a uniform payout <?f Is 6dl ha.d been possible without leaning on the bank. The liability to the bank Had been reduced in the last 13 years from £15,400 to nothing. At present there wa.s no overdraft. Dealing with th e future, Mr Rogers said that the outlook was very bright, particularly for cheese. There was genuine cause to be well satisfied with the position c,f the company. The chairman then moved the adoption of .the report and Mr 'W. Elvin seconded.

’ In." reply to Mr F. Burfoot the clerk 1 explained that the item of £27 0s 9d! * for income tax was largely on account of the fact that interest had been ‘ Paid to shareholders on paid-up capi- ! ta'l. Tax was also, payable on the proL fits of the various trading accounts ’ and the undistributed balance due to suppliers! carried over from the previous- year ' In answer to other questions it was explained, that the share basis was one to every 1001 b of butter-fat. Thie paid-up capital was £10,701 7s, and .the amount unpaid was only £687 13s. The report and balance-sheet was adopted. ELECTION OF DIRECTORS. ', Nominations to. fill the vacancies on the directorate, caused by the retirement. by rotation, of Messrs G. Gray and S. G. Williams, were called. Messrs W. Taylor and P- Dale nominated Mr Gray and Messrs A. C. Ansford and R- Flynn nominated Mr Williams. There being no furt'hfer nominations, the retiring directors were declared re-elected, and they expressed their thanks for the renewed confidence. SHARES. In reply to, Mr BuTfoqt the- secretary explained that there were 59 shareholders, of whom 53 were still I suppliers. The directors had in mind the resumption of tlie A, shares at par when finances permitted. Interest At the rate of 6 per cent, was paid to shareholders. SALES. $ The chairmail stated that some offers to buy the'output had been received. but so fa,r no suitable price ■had been received. The present indications were that -consigning would be the best proposition, and the directors favoured this method of dealing with the output. Mr Burfoot, advocated accepting any good offer, as, it would mean a high payout in tlie early part of the season, when moriey was most desired. He. would prefer to see the shareholders consulted on the matter. The chairman pointed, out. that it 1 was usually necessary for an offer to be accepted or declined within 24 hours. There was thus n'o time to consult the shareholders.’ HERD TESTING. •Mr R. Flynn asked if it was desirable to employ a herd-tester, who in ! his spare time' could be employed as a shed inspector. Tlie chairman pointed out that if all the suppliers commenced testing under the company’s scheme: there would be no time for the tester to undertake extra duties. Mr Burfoot expressed the opinion that the cqst of testing, by an employee of the company should be less than by the Herd Testng Association. Mr W. Taylor pointed out that if all suppliers desired to test it would justify the employment, of two testers. This, would mean that they would have time for other duties. The factory manager pointed out that a shed inspector, would have little power unless authorised by the Government. Mr F. Beck observed that those who , advocated a. 'shed inspector should supply the N.Z. Dairy Co. and they would have many inspections. • Tih'e factory manager pcjnited out that the Government inspector; had power to inspect any shed. Mr C. Schmidt advocated dealing drastically with those who supplied milk of poor quality. The factory manager said tba,t the greatest difficulty experienced was with suppliers who sent in milk from cows that had recently' calved. Mr Beck said thajt tlie problem was bound up w'ith the employment, of shai'emilkcrs, whose only cone’ern was to get the greatest bulk.

AUDITOR. On the motion of Mr AV. Elvin, seconded by Mr C. Dale, Mr F. s. Battley. of Auckland,, was re-elected auditor. ANNUAL SOCIAL. That hardy old annual, the question Ojf who should be given free tickets for the annual sociaj, was brought up by Mr, Zeiglar, who was informed that the tickets were issued to, shareholders, who could dispose of them as they thought fit. Mr Burfoot moved that, the: annual Social be discontinued and in its place be substituted an annual-dinner fey shareholders, their wives, and families. Mi; Geizler seconded. As an amendment Mr Taylor moved that all past shareholders be included, I but this lapsed fo,r want of a seconder. Finally The motion was altered sb that next year a dinner would be: provided for, suppliers, tlie'ir wives, the factory staff, and the founders of the company. There was considerable opposition to tin's, shareholders advocating the admittance of the famiilies of suppliers. On the motion being put to the meeting it was carried by one vote — 18 for and 17 against. The arrangements in ccipnection with the dinner were left in the hand's of the directors. IMPROVEMENTS. Mr Burfoot advocated that a sum of money should be' set aside annually for the improvement of the appearance of the factory. The chairman agreed with the suggestion. and said tha.t .it. would receive consideration. Mr Beck pointed out that before

long the approaches to the factory wo ( uld have to be altered;, as; so many suppliers were changing over from hqrse-drawn vehicles to motortrucks. REPLACEMENTS. In reply to a question, by Mr Zefiglar the chairman said that the factory plant was in good order, and the only replacement contemplated was' that of two boilers. with one of a larger size in a different situation. APPRECIATION. Mr Burfoot moved a vote of thanks to the chairman and directors. In seconding, Mr Kern'ick urged that suitable recognition of the services of the staff be made. ' Mr Burfoot thought that verbal recognition of the staff’s work was all that was required. Mr McKenzie, the factory manager, agreed thajt the staff did not desire monetary recogniitiqn. They all did their best qnd would continue to give of their best. Mr Stewart seconded the motion on the understanding that a letter of appreciation of their work be sent to the staff. This was carried.

The chairman of directors returned thanks, and commended the shareholders for their loyalty and cooperation. He thanked the shareholders for the renewal of confidence shown in the directors. WORK OF STAFF. During the luncheon adjournment a toast to the factory manager, Mr K. McKenzie, and factory staff was drunk on the motion of the chairman of directors, who stated that the very satisfactory result of the year’s work wa.s largely due to. the splendid work of the factory staff. Mr Rogers said that those who, had supplied the factory for a number of years would agree that Mr McKenzie was; tlie best manager the company had ever had. He ha,d the responsibility of dealing with £60,000 worth of produce,' and to him was largely due the success of the year’s operations, In returning thanks Mr McKenzie said that he .ha.d a staff of good and Iqyal workers, who were out to do their best for the suppliers.