Opotiki News

Rotorua Morning Post, Volume 2, Issue 331, 19 September 1932, Page 6

Opotiki News

Our District Representative)

CO-OP DAIRY CO. KEEN DISCUSSION AT ANNUAL GENERAL MEETING. STRONG POSITION SHOWN.

(From

The annual general meeting of the , Opotiki Dairy Co-operative Association was held in the Regent Theatre, Opotiki, on Saturday, Mr. W. Connor, chairman of directors, presided, and associated with him were the following: W. Rowe, J. G. Murray, W. Gault, J. Wilson, P. J. Parkinson (directors), J. D. Sinclair (secretary), Messrs. H. and R. Aicken (commercial agents). After the secretary had read the minutes of the last annual general meeting, Mr. A. E. Martin rose and disagreed with a portion of them and asked that his disagreement he recorded. The portion referred to read "that Mr. Martin would not offer his services on the Board of Directors again," whereas Mr. Martin contended that what he said was that he would accept their verdict. Mr. Martin added that whether he ■ offered his services again or not re- | mained to be seen. f The minutes of both the annual j and extraordinary general meetings j were then confirmed. j In his report the chairman said it | gave him very much pleasure to report that there had been an increase i of 228 tons of butter manufactured j during the last season. He thought this increase would have been still larger had there been a better spring. Indications were that they would pass the 2000-ton mark this season, and he hoped that this would be realised as it was in the interests of everyone that they should increase. Saies Problems. The question of saies had been more difficult during the past year. He pointed out that at one time they only had to consider the amount they could produce, but now they had to tako into consideration tariffs and many otlier difficulties in selling. He considered that one of the factors whieh had kept the prices down was that Australia had had a particularly good year and that their butter was improving both in quantity and quality. It was, however, reassuring to see that suppliers had been sending- in much better quality cream, and this was essential in elforts to meet Australian ,and European competition. Having in mind the necessity for more effieient working of the factory the directors at the last meeting had decided to alter the system of cream cartage. They had re-grouped the runs, and had thus been able to obtain a very good price for their cream cartage. In every case the lowest tenders had been accepted. With one exception the carriers were men who had considerable experience of cream cartage. He felt sure that the scheme would be successful and utged all suppliers to give the carriers a back cartage if they could. With regard to the balance sheet he thought that the only items which called for any remark were repairs fco plant and additions. These were mostly accounted for by the alterations made when the factory was eleetrified by the Bay of Plenty Power Board. It had also been nece-s-sary to build a new house in place of the one which had been burnt down. Proprietairy Company. He then touehed on the operations of another company in the district and wained suppliers that aithough their own co-operative company had been without opposition for many years, a proprietary company was now canvassing the district and, no doubt, w-as putting up very persuasive arguments as to why Opotiki suppliers should change from co-op-eration to a proprietary company. He called on one and all to remember that co-operation in New Zealand dairying had proved successful. Aithough it might not appear so at first glance, it was really quite obvious that in a proprietary concern all expenses must be born by the suppliers. j The prices of the proprietary concern were only kept up owing to the opposition offered by the co-opera-tive concern. This meant that everyone who left the co-operative concern ; for a proprietary one was weakening the co-operative until it reaehed I the point where its prices began to j drop and then the proprietary prices would also drop. He, therefore, j urged everyone to stand by their own co-opei-ative factory (applause). In seconding the adoption of the report and balance sheet, Mr. T. Steeie congratulated the directors on being able to present such a good report at the end of such n very difficult year. Butter Quality Drops. In reply to Mr. Martin, the chair- j man admitted that aithough the quality of cream supply had been higher the average quality of the butter had been lower. He pointed out that the past average quality of the butter was of a particularly high standard, and for this reason it was all the more difficult to maintain it. Mr. Martin asked how it was that the factory store account showed such a large profit this year and whether it was due to some different method of book-lceeping or some otlier i reason. The chairman said that it was due to very good buying and selling. Mr. Baigent took exception to a paragraph in the report dealing with cream cartage. He had always opposed any alteration but had been away at the time of the extraordinary meeting called to deal with this matter and wished to register his protest now. He considered that had the campaign been condueted differently the directors wotild have experienced no ' difficulty whatsoever. The methods ; they had .adopted had shaken the con- j fidence of the suppliers, and he ap- ! pealed to tho directors to make a ! determined effort to win that coxifi- ' dence back. | In endorsing these remarks, Mr. | Martin warned the directors that if they were to take such a drastic step again without first consulting the suppliers the results would he much ■ more serious. I After the report and balance sheet

had been adopted the same auditors as last year were elected, but the remuneration was reduced from sixty guineas to £50. The remuneration for the chairman of directors was fixed at £100 and £12 per year for each director. Capital Increase. The chairman then asked for authority to be given to the board to increase the company's capital. The Hon. Gow, speaking, said that, as one of the original shareholders, he was particularly interested to hear the chairman point out that capital j had to be increased several times ' already owing to the constantly in- I creasing supply. The authority was j granted. : In reply to a suggestion by Mr. , Maxwell that it be a recommendation j to the directors that the f actpi;y store he placed on a co-operative basis and all profits divided among those who used the store, the chairman pointed ; out that this object would be achieved by lower prices. On the suggestion of Mr. Harrison congratulations of the meeting were offered to the directors and every member of the staff for their j very excellent work during the last ! year. Mr. A. Aicken, on behalf of Aicken and Sons, commercial agents to the association, made a short speech in I which he said that it gave he and his I i brother great pleasure to come in j touch for a few moments with those S people whose goods they had sold for I the past 30 years. He did not think | that it was out of place for them to be present at this meeting (applause) . He touehed on the diffij eulties which were found in marketing to-day and said that he considered the New Zealand farmer had set an example to the world in cooperation. It was gradually being reeognised that co-operation was essential- to world recovery, and that signs were not lacking that the world was gradually attaining greater co-operation and with it recovering from the slump it had experienced. Butter Over-run. Mr. Martin brought up the question ! of over-run in butter making. He i contended that this was a question, j. of national importance and suggest- | ed that, as the Opotiki factory had j a larger over-run than the dairy di- | vision considered should he the case i in a normal factory, the division | might be asked to go into the question with a view to ascertaining if there were any remedy.

In fact the dairy division had gone j so far as to say that if the heavy ] over-runs which occurred in' some ' factories did not cease they would ; have to bring in legislation to deal j with the matter. He did not refer ; to the Opotiki factory only, but eonj sidered that the question was one of national interest and suggested ; that, as there had been some dis- ! satisfaction in the past as to the j over-run in their own factory, the dairy division might be called in with j a view to conducting an investigai tion. This would be of national in- ! terest and information and would 1 also clear up any local dissatisfaction , that there might be. In replying the | factory manager said that he took a ! very keen interest in the question of ' over-run, and had recently attended a conference of dairy factory mana- , gers on this very question. | The directors had purchased the I best scales that money could buy for i weighing the cream at the factory. j He believed that those in charge of I the work" at the factory were abso- ( lutely reliable and tests were taken j and held for inspection by a dairy I division officer. These inspections j wero made without warning. ! Difficult Matter. i He quoted the big factories in the • Waikato which. had laboratories at . their disposal and were still unable ; to deal with the matter. With regard to a factory in Taranaki quoted ; by Mr. Martin, be pointed out that ■ the dairy division had been called in by the factory officials in this case and that they had found that everything that could he done had been j done to reduce. the over-run. He assured all suppliers that he i was watching the question of over- . run very closely and was making ( every effort to reduce it. I In ^replying, Mr. Martin pointed j out that the manager appeared to think that an accusation of corrupt J practice was being levelled at him, j whereas he had been most careful \ not to do this, but had suggested : that the dairy division be. asked to ! go into the question of over-run as j being one of national interest. Such ! an inspection might assist in proving j whether the division or the factory j were correct. The motion was de- ' feated..