THE DAIRY ASSOCIATION.

Pukekohe & Waiuku Times, Volume 3, Issue 224, 25 August 1914, Page 1

THE DAIRY ASSOCIATION.

Annual Meeting of Shareholders. There were about 100 present at the annual meeting of the New Zealand Dairy Association, held at Hamilton on Friday. Mr Wesley Sprang presided. Messrs W. C. Motion, A. M. Barriball and R. 11. McKeuzie (directors) were amongst those on the platform. Others from this district who were in attendance were Messrs Hayes (Waiuku), Dynes Fulton (Tuakau), G. P. Ewing, J.Fulton and J. D. Johns (Whangarata). Mr Spragg's address was full of interest. Its delivery occupied about threer[uarters of au hour. We are using parts of this addiess in today's issue and will publish it fully in the'next few issues. THIRTEENTH ANNUAL REPORT. The thirteenth annual report was read as follows: " The year has been one of pro gress. The Association's manufacture of butter has incieased substantially. Its markets have expanded, and there lias been an unsatisfied export demand for the j Company's butter. Its business upon the local market has been bigger than ever, before. The markets in Canada, California, aud South Africa, have responded satisfactorily to the attention given to them, and the relationships between the Association and its Agents in London are of the happiest kind. Agencies have been opened in America during the year. " An industrial strike of unusual magnitude occurred during the season, and militated against the success of the year's business. The strike seriously curtailed the operations of the casein department. The year, however, has given good experience in the manufacture and marketing of casein. The immediate future for casein is menaced by the European war which is now raging; but prior thereto, the outlook was encouraging. The influence of the war upon the general business of the Association is engaging the earnest consideration of

i your directors. " The butter manufactured duriog the year was 11,343,5121b5., this being an increase of 1,21H,G381b5. on the preceding year's make. The average butterfar (quality of milk was 3.760 per cent. The overrun was 17.7 per cent. The skim milk test averaged over all creameries was 0.04 per cent. " Tho maximum " Quantity Bonus " gained duiiug the season was ljd per lb. butterfat. The sum of £13,0-52 10s has been allotted for the payment of a profit bonus of i'd per lb. upon tho butterfat received during the year. " Provision has been made for the payment of a dividend of six per cent, on the capital paid up on June 30th, on shares allotted before March 3lit last. The directors recommend this pavment, which will absorb £1,400 4s o"d. " The total payments ou a butterfat basis to shareholders at the Association's largest creameries for the year average the very satisfactory sum of 12 338 d. (over 12-5 16d) free of deduction for cartage or other account. The shareholder-suppliers to tin' Association's smaller creameries receive proportionately less, according to the amount of their (juantity bonus. Where skim milk has been used for casein manufacture an additional l]d per lb. butterfat has been paid, plus the return to suppliers of fortified casein whey. The unusually largo sum of £7,037 lis lid has been expended upon repairs, renewals, and general maintenance for the year. The value of the Company's property has been particularly well maintained. Depreciation at the rate of live per cent, has been provided as usual upon the whole property. This will absorb £4,380 »s id. The Self-Insurance Fund at the end of the financial year was £2,0">0. The Eeservo Funds stand at i' 1,-57'J 2s Gd

During the year yoiiv directors have conferred with the suppliers re commencing the manufacture of cheese and have offered to instal the necessary plant at certain creameries on usual co-operative principles. The comparison of past payment-, and a review of future prospects have caused the suppliers to decide in favour of adhering to butter manufacture for the time l>eing. " The Company's chairman, Mr Wesley Spragg, visited America arid Europe dining the year. His visit proved to lie exceptionally timely and valuable to the interests of the (!ompany." QUESTIONS AND ANSWEKS. In his speech Mr Spragg had suggested a revision of New Zealand's butter trade In the appointment ol a committee of control, two representatives t> net in London. Ho was asked i! he did not think this matter should I"' postponed in view ill the present erisi>, and that the company go on consigning in the old way. Mr Spragg : 1 cortaiuly think we should suspend everything thai can ho suspended. Mr K. Smith Kaipaki wanted to know what.Subscription-. H m > f'SHd and Donations 117 *s lid meant in the lialanco sheet, Mr Pacey replied that thu donations were to philanthropies, such as the Salvation Army work, in Auckland, which it was felt had a claim on the business. Subscriptions meant donations to shows, affiliation fees,

Mr J. Teddy dvaipaki; wanted to know if it was usual to suppliers with iufelior butter, lip to March the butter was very inferior.

They were prepared to supply clean milk but they wanted good butter. Mr I'acey said suppliers had the same privilege as other consumers . if the butter was not good they should send it back.

1 Another speaker said if they had i an inspector to visit tiie farms and see what the cows were i'c 1 on they would find the. secret of much of the inferior butter.

Mr Scrivener pointed out the advantage which Midhirst factory, iu Taranaki, showed over the N.Z. Dairy Association. They paid a bigger price and had a lower cost of manufacture.

Mr Pacey acknowledged that Midhirst had beaten this Association this year, but it was the first time they had done it. The Midhirst factoiy was uniquely built alongside a river, and water power was available for its use. Its territovy was small «nd it had no tiansport charges such as this Association had. Last year, too, Midhirst dealt with speculators at tLe beginning of the season aud in a perfectly legitimate way took the speculates down for some thousands of pounds. This was ore of the years when it paid to soil to the speculators. But taking year in and year out this Association thought the consigning policy was the best policy and it was the intention of the directors to adhere to it.

Mr J. Fulton (Tuakau) asked what was the coat of manufacturing and placing a pound of butter on the market.—Mr I'acey said he had not the figures available. Several instances were quoted of the splendid feeding values of casein whey. Tho payment of the loyalty bonus created some discussion, Mr Dynes Fulton sayiug it had been paid for six years at Unew hero. Tho directors, he said, shoetld seriously consider the matter before going on any further.

Messrs A. M. Barriball, J. D, Johns and J. Fulton spoke of haulships suffered through the loyalty clause.

MR SPRAUG'S EEJIREMfcNT

Iu concluding Lis address Mr Spragg said: —"1 trust you will pardon a personal reference or two. The term of my agreiuiont with the company will permit of my liberation in tho uuurse of a few months and I have uotilied my follow diiectors that I shall desire to avail myself of it. 1 take pride in the fact that I personally pioueered the successful company dairying of New Zealand. Un the first day of the existence of the busiues* of which the" present New Zealand Dairy Association is the successor, 1 was the entire staff, manager, man and ail. The propeity ot the concern wae, on that day, absolutely nil. It did not own even a scribbling pad. The iirst day's overturn was also nil. That was uU years ago. The employees, including cartage contractors of the company, now number 217. Its property is of a book value of over £IUO,OOO. Its overturn last season us shown by the balance r,heet was £<>oU,47y. The. total volume of its payments during the .JO years account for much of the altered face of tho country between the city of Aueklaud and of the farthest Waikato. 1 take pride in my share of the conversion of the titreo and feralaud wildernesses el l«Sl into the teitile farms of l'Jl-1, and the change of hamlets into the prosperous, and here in Hamilton 1 might add, magnificent inland towns which have grown up largely because of the prosperity of the surrounding dairy farms.

" I did not inteud to lvuiuiu so long in the company's service and, indeud, but lor pressure from some who felt that my cuntiuued presence iu it was of importance to it, 1 should not have returned after my seiious accident of three yours ago. There is now no reason why 1 shou'd longer cany auy share of its

tosponsibilitii s. It i> id small part (if th'' service which I have rendered to this company that J had much to do with the training of your present General Manager who takes my place. He came t > me many years ago as a boy. lie is now a good type of man. I lliink most of you have the wisdom to lecoguise the advantage you possess in having his quality and experience at the head of your affairs " It is due thai I should express my thanks to the employers of tho company for the manner in which they have assi.-tel mo. Of the several hundreds who have one time or another during the last ."JO years boon under my control I can only cad to memory one who failed to g.ve mo his loyal good will. With some of them, that goodwill has deepened into a valued friend. I think this speaks well both for the employees and myself. Of my follow directors, past and present, I have the same thing to say. My attachment to the old directors who have retiied from timo to time has perhaps sometimes modified my welcome of the new ones who displaced them, but iu turn these have almost invariably come to occupy similar positions in my regard. The exceptions when these relationships did not exist have been of the rarest and can be easily forgotten. I am certain that no co-operative company aud possibly no ordinary jointstock company directorate iu Sew Zealand has as »ul«1 a record for pulling together for its company's good. 1 want to thank all these people. " Our suppliers and shareholders, past and present, have been an enormous number, They have represented two generations. At present they constitute a body of considerably over 2000. These aud their connections with whom 1 have had more or less contact, have perhaps not always been quito pleased with me, aud, to be frank, 1 have not always been pleased with them. To hold a business such as ours together, required more than negative qualifications A chip iu milk (you, as daily men, will notice the appropriateness of this illustration), would have been a certain failure. That we have moved down the years without more serious friction and that so many, especially of the older members of this company, are my very good friends, is grateful to me now that I am saying " good-bye." Mr (i. l\ fcwiug moved, That this Association regrets the intimation that Mr Spragg intends to sever his connection with tho company: that it desirt s to express its appreciation of the services ho has rendered to the Auckland dairy district, which owes a great deal to his clear brain and individual care without which the Association would hardly be in the position it was that day ; that the hope of the Association was that Mr Spragg might long be spared to enjoy the rest he had so well earned.

Mr T, C. I'lackott, who was one of the original directors and still remains on the directorate, seconded the resolution which was carried with enthusiastic applause.