THE DAIRY SEASON

Opotiki News, Volume I, Issue 89, 26 September 1938, Page 2

THE DAIRY SEASON

THE OPOTIKI DAIRY ASSN. LTDTF7E ANNUAL MEETING SMALL ATTENDANCE The annual; meeting of shareholders of the Opotiki Dairy Association Ltd., was held in the Regent Theatre oil Saturday morning. The chairman of directors, Mr W. J. Connor, presided over small attendance. The minutes of the previous annual meeting were read by the secretary (Mr J. R- Sinclair) and confirmed.

The accidental omission of figures in the previous annual report in the published 1 balance-sheet was explained and Mr Maxwell, who had asked a question at the previous annual meeting stated that the position had ,been as stated and he had received the answer shortly after the meeting. Mr Gow said that a balance-sheet should not. he held up over a little matter which had been dealt with.

The report and balance-sheet weretaken as read and Mr Connor then moved the adoption of the report and balance-sheet which were then thrown open for discussion.

The" chairman in liis remarks said the company could congratulate themselves on the increase of 463 tons. They had hoped to reach an output of 3000 tons but the bad winter retarded production. The quality of the product was good and they had had a satisfactory season. As regards the payout, the Government had fixed the price at too low a standard. Prices oil the London market were higher. The farmers also . bad to . meet increased costs. The amount fixed would have given a balance of over £BOO,OOO. There was still a substantial credit in the dairy fund. They had heard a lot about the improvement as. a result of the guaranteed price. In the first year the farmers gained £260,000 but last year they lest an amount variously estimated up to £1,000,000. The true facts of the case were that the farmers had not had as much in the way of payout as if they had handled the, produce themselves. They were very much behind and had to lace increased cost and also higher costs at- the factories. They regretted that the price recommended by the committee was not accepted by the GovernmentThe special committee bad gone into the matter very carefully. The recommended increase of 2d had been ignored by Mr Nash. The Minister had said the Government could -not pay that figure without the danger of thebreakdown of the scheme. M'f ; Connor then referred to a number of increases in factories’ costs.

Another matter dealt with by the chairman was in regard to the local, market. He stated that the Opotiki Company had supplied the Auckland market for 30 years and this market was now of no use at all. The policy was that no factory should gain any benefit from the - local market. Jr had been very hard to surrender this trade and get no compensation. He contended that the company should he entitled to some goodwill. Their Auckland agents had' lost heavily for some time through insufficient distribution payments. It would have been a graceful act to have recompensed Messrs Aickin and Sons, who estimated their loss at £llsO. The company had found the amount allowed for patting was not sufficient to allow them to carry on and the machine had been sold in Auckland. Mr Connor then stated the reasons for the company deciding to take overthe pig farm. He considered that the company should' have got more for the buttermilk. - They hoped to be able to make the farm a paying concern by the end of the year. Mr Connor then dealt with a number of items in the balancesheet and said that £4907 had been refunded to the Internal Marketing Department. Any surplus above costs wont into the dairy industry account. In dealing with the statistics Mr •Connor said there had been a substantial reduction in -the overrun as compared with previous yearsThe chairman’s motion was seconded by Mr J. B. Gow. A number of questions were then asked by shareholders. Mr Maxwell considered the cream grading percentages were too high for the grading of the butter. In reply the chairman said they/had had a Government grad-; or at thp! factory so that no supplier would bej victimised. Ho had told the grader that in his opinion they were

making the grading too high. ■< In remarking on the big reduction in the overrun figures, Mr Martin said lie was going to thrash the chairman with iiis own words. He (.the speaker) had . claimed for years that the overrun was too high. He contended that 20.55 was a reasonable figure. It had been as high as 23.65. The chairman had claimed that the higher -figure was due to good management. The shareholders had lost £6500 in cash as a result of the reduction. Forty pounds of butter in every toil had been lost. With the drop in the overrun the payout had dropped- Actually they were not losing anything. Mr Gow rose and expressed strong disapproval of the trend of Mr Martin’s remarks and said he hoped the meetings would be conducted in a way that was respectful to the chair. “Are we to meet here and have an insolent fellow address the meeting P’ lie asked. He strongly objected to the language used to the chairman.

Mr Connor in reply said they would pass on with the business.. Mr Martin again attempted to ad-

dress the meeting on a point of order,

but Mr Connor asked Mr Martin to sit dojvh. and immediately ■ put the motion to the meeting ana the report and balance-sheet were adopted.

Mr. Connor tlien announced that Messrs Ghas. Fleming and T. H. Pearson had been re-elected as auditors. On the motion of Mr Martin the remuneration was fixed as in the previous year, namely £6O. The motion was seconded by Mr Maxwell and carried. / -

Mr Connor stated that only two nominations had been received for the two vacancies on -the directorate and declared Messrs J. G. Murray and E. J. Parkinson duly elected. An apology for absence on behalf of Mr Murray was tendered by the chairman who extended thanks on behalf of Mr Murray. Mr Parkinson also expressed thanks and said, that the duties of director wore not so arduous as they did not have to dispose of their butter but he hoped later on they would again have that privilege. He * hoped tne Opotiki Association would have a good season.

. Mr Gow moved that it he a recommendation to the directors that mileage he paid' to those coming a big distance. Seconded by Mr Armstrong

and carried.

• Mr Martin made a strong appeal to shareholders for funds for the compen-, sated price campaign. He asked suppliers to assist more than they had in the past. Mr Connor said that it was illegal for the company to make a contribution. ,

Mr Sinclair said he had been approached by Mr Furness who said he was anxious to get funds. The newspaper “Progress” was doing excellent work. Mr Martin had made a good suggestion and the cause was worthy of support. Mr G. F. Joblm also spoke in support of the campaign. " Ml’ Martin proposed a vote oft thanks to the chair, the directors and the staff.

Mr Sinclair replied on behalf of the staff, and expressed deep appreciation of the motion. Air Connor replied on behalf of the directors.