TOKOROA CHEESE FACTORY.

Putaruru Press, Volume II, Issue 51, 9 October 1924, Page 3

TOKOROA CHEESE FACTORY.

LAST SEASON’S OPERATIONS. Small Increase in Output. The fifth annual meeting of the Tokoroa Co-operative Dairy Company, Ltd., was held in the Tokoroa Memorial Hall on Saturday afternoon. The attendance numbered some 15 shareholders and suppliers, namely, Messrs. J. Mossop (chairman of directors), presiding, L. Hamilton, S. Ashworth, Leonard (Chambers’ estate), Dykes, A. Sloper, J. Campbell (Matarawa Land Company), J. E. West, W. Carr Rollett, J. H. Stringer, E. J. McHale, Walker (2), Cairns and Flavall. ANNUAL REPORT. The ch lirnian read the following report .he directors concerning the past season’s operations:— “ During the year 153 tons 12 cwt of cheese were manufactured (an increase over the previous season of 9A tons). The quantity of milk received was 3,363,241 !b. The butterfat averaged 0.9 per cent, and amounted to 131,2G51b. Each pound of butterfat averaged 2.62 b of cheese and it took 9.771 b of milk to make 11b of cheese. “ The average paymeift for butterfat during the season will be Is 4.39 d per pounL making a total disbursement for butterfat of £8968 15s 9d. The am cunt to the credit of the appropriation account now stands at £27 13s 8d- Your directors recommend tint 5 per cent, be distributed by way cf dividerd on non-suppliers’ paid-up share capital as at July 31, 1923. An amount of £206 16s 83 was provided for depreciation of tHe company’s assets. The total expense per pound of butterfat handled Was 5.84 d, as compared with 6.08 d per pound for the season 1922-1923. “ The retiring directors are Messrs. L. J. G. Hamilton and Jas. Price, who, be'ng eligible, again offer themselves for re-election. Mr. J. H. Stringer having retired from the directorate an election will be necessary also to fill this vacancy.” SUPPORT FOR THE FACTORY. In moving the adoption of the report, and accompanying financial statements as duly audited, Mr. Mossop said the increase in output for the season, 9h tons, seemed to him disappointingly small after the big increases of previous years. He appealed to the farmers of the district to pull together to make the factory a success, to the great advantage of the district as a whole. The greater the supply to the factory the better proposition it would be for all concerned. Mr. J. Campbell seconded the motion. Several questions were then asked and answered. REDUCING BANK OVERDRAFT. In reply to Mr. Carr Rollett the chairman explained that at the date on which the books were closed, July 31, considerable stocks of cheese remained on hand unsold. These represented the best part of £I9OO, which had then still to be distributed to the suppliers. Mr. West asked would not the increased debit to the bank also be reduced from the amount shown in the balance-sheet through realisation of these stocks and a further £SOO reduction be made through the payments on share capital during the season. The Chairman: Yes. The secretary (Mr. H. L. Martin) explained that the overdraft limit was considerably in excess of the actual overdraft. Messrs. Rollett and West also spoke supporting the motion for the adoption of the report and balancesheet, while tEe former also endorsed the chairman’s appeal for the fullest support for the factory from the farmers of the district, pointing out that the bigger the supply the lower the working costs and consequently the higher the payout. Even if the payout for the past season had not been particularly high the supporters were getting property an the form of the factory. RELATIVE PAYOUTS.

Mr. Flavall said he had seen the balance-sheets of some 30 or so cheese factories for the past season and none had a payout as low as Is 4d. Their payouts ranged from Is sid to Is 82d. Mr. Leonard said the Waimamauku factory, near Hokianga, which was a small concern and had sold all its cheese on the local market, had paid out Is B|d. However, he thought the Tokoroa factory’s payout compared quite favourably with those of factories similarly situated. Mr. A. B. Walker said he knew of one factory, more favourably situated than the local one, which had paid out only Is 3d odd, and the secretary added that the payout of the Okoroire Railway factory, which was situated right on the Government railway and altogether in a very much better position than the Tokoroa factory, and which was owned by the

New Zealand Co-operative Dairy Company, had paid out only a little over Is 4Jd.

In reply to a further question the secretary said that the total cost of manufacture, marketing, etc., last season, 5.84 d per pound butterfat, was a reduction, the figure the previous season being 6.OSd. In fact this item had shown a reduction each season since the company’s first, when it was 9d. The 5.84 d was comprised as follows:—Materials, depreciation, commissions and cost of manufacture, 4.25 d; railage and chilling, 1.28 d; general, ,31d. PRESENT VALUE OF CHEESE. In answer to another query Mr. Leonard said the present price on the London market for coloured cheese was equivalent to B£d per pound f.o.b. Auckland. BONUS PAYMENT. Mr. Ashworth asked when would the final bonus payment be made. The Chairman: In a week or so now. The directors have yet to discuss it, but I think I can guarantee you will not have many days to wait.

The report and financial statements were adopted without dissent.

DATE OF ANNUAL MEETING. Considerable discussion took place as to whether the company in future should not close its books for the season on May 31 or June 30 instead of July 31 in order that the annual meeting could be held earlier and the suppliers thus know the total payout, etc., for the past season before cheese making in the new season began. The matter was referred to the directors as a suggestion. The retiring directors were reelected unopposed and on the recommendation of the directorate Mr. A. B. Walker was elected vice Mr. Stringer. The question of remuneration to the directors was dealt with, the chairman stating that he considered that in addition to the £lO per year honorarium paid to himself it was only meet that some recompense should also be made to the other directors for the time they spent on the company’s business. Mr. West said he thought the prospects for the farmers were now improved, and" as one who had rather spoken against remuneration for the directors two years ago he would now move that they be paid 10s each per meeting with a maximum of £6 per annum. Mr. Leonard seconded. Messrs. Carr Rollett and Hamilton moved as an amendment that the amount be £3 3s per annum. The amendment was carried on the voices. The chairman’s honorarium was fixed at £lO for the coming season, the same as last season. STRICTER GRADING.

The chairman stated that there was a proposal to raise the minimum points for first-grade cheese from 88 to 90 and he asked suppliers to do their part to deliver the milk to the factory in the best possible condition. A Voice: Are you in favour of the higher grading ?

The Chairman: No, I am not, but it appears that it is desirable to help the New Zealand producers in competition with dairy produce from other countries.

Mr. Leonard explained that the minimum for first-grade cheese would probably be advanced only one point but for butter two points.

A vote of thanks to last season’s directorate, moved by Messrs. West and Leonard and carried by acclamation, completed the business.