LEVIN DAIRY COMPANY.

Shannon News, 3 August 1923, Page 2

LEVIN DAIRY COMPANY.

A MOST SUCCESSFUL YEAR. ANNUAL MEETING OF SHAREHOLDERS. The 24th annual general meleting of the Levin Dairy company was held in th Century Hall on Tuesday. Mr S. A. Broadbelt, chairman of Directors, occupied the chair, and there was an attendance of about 120 shareholders and suppliers. ANNUAL REPORT. The Directors’ report was as follows :

The Directors have much pleasure in placing before you the '24th annual reiport and balance sheet, and congratulate the shareholders on the highly successful season just concluded. Since our last report and balance sheet we have paid out to our suppliers two Anal payments amounting to £10,293 19s 4d. and it is agreed to pay a further final payment of Id per lb on butter fat received from Ist December, 1921, to 31st May, 1922. This will make an average pay-out to our suppliers of just over 1/6 for the 1921-22 seiason.

Good prices have ruled for our produce throughout and the Company has been able to maintain a liberal advance to suppliers throughout the year. The butteir market at the present time shows a decline, due partly to the unsettled condiions in Europe, mid to the increased production in the Southern Hemisphere. The Company has manufactured 934 tons 14cw,t 3qrs 121 bof butter, which constitutes a record increase of 225 tons over the previous season’s output, and the share-holders and suppliers are to be! congratulated upon this increased production. We have still maintained our reputation for good quality, being first on the list of 61 factories grading through' Wellington, with an average grade of 94.68. At the dairy shows throughout the Dominion the Company has had a good share of the honours that have been awarded competing dairy companies, and the manager and staff are to be congratulated on the most excellent results obtained. The average advance paid to suppliers for the season has been 1/SJ. A further payment of Id per lb on butter fat received for the whole season will be paid making an average oav-out of l/6fcL The Directors recommend that a dividend of 6 per cent, be paid to- the shareholders, absorbing £366 Bs. This has been, allowed: for in profit and loss appropriation, account. * Provision has also been made for Land and Income Tax. The retiring Directors are Messrs A. S. Death, H. Dyer and S. Rolston, iunr., who are eligible! for re-election. Those nominated are: A. S. Death, H. Dyer, A. L Edginton, J. Honore, W. e! Kilsby, and S. Rolston, junr. The thanks of the shareholders are clue to the! staff for the efficient manner in which they have carried out their respective duties. The auditors in compliance with the Dairy Industry Amendment Act, 1922, certified that the weight of butter made from each pound of but-ter-fat during the year was 1.1861 lbs, and that the percentage which the weight of unsalted- butter meiHufaclured bore to the total weight of butter manufactured Was 14.374 per cent. v CHAIRMAN’S ADDRESS.

Iri moving the adoption of the report and balance sheet, the chairman said he would like to congratulate shareholders on having attended m su&h numbers. It was very encouraging to the Directors to see so much interest taken in the affairs of the .company. The Directors were always pleased to see shareholders turn up to meetings and make any suggestions possible. Constructive criticism was always valuable, not destructive, but tli/ei man who came forward with a suggestion for the betterment of the company was always welcome.. As would be seen from the report the amount of butter manufactured was 934 ions 14cwt., which was an increase of 225 tons over last year, and was a record of which they had every reason to be proud, especially when _ it was known that of the 64 factories graded in Wellington, Levin had had thie- highest average grade. (Applause). About three-quarters of the total output was graded and the average grading was 94.68. During the last ten years there had been, little diffidence" in the high grade of the output, and although they had not taken as many honours at shows as they might have, they had got their share, and the improved standard of competitors must be taken into account. The quantities of milk and cream received at tlhe factory and the amount of butter manufactured would giviq ■m idea of the size which, the factory had attained. The Levin factory, from 71 suppliers, received during the year 6 450 0221 bs of milk, giving 256,145 lbs of butterfat, and from 126 suppliers 1 9-illbs of cream, yielding 480,977 lbs of butterfat; Ihakara with 30 suppliers \ba,d, supplied, 4,761,356 lbs of milk, and 12,1701bs of cream, giving 187,942 and 5261 lbs of butter-fat respectively; Foxton road (45) supplied 604 480 lbs of cream, yielding 230,587 lbs’ of butterfat; Linton (15) 3,249,320 lbs of milk, giving 127,680 lbs of butterfat ; Ohau (25) 3,390,942 lbs milk and 5696 lbs cream, giving 133,457 and 1963 lbs of butterfat respectively; Kimberley road (35) 3,577,411 lbs milk and 14 7021bs cream, giving 144.502 and 6126 lbs of butterfat; and Heatherlea (41) 3,740,1501bs milk and 106,514 lbs cream giving 148,586 and 42,559 lbs butterfat, a total of 25,169,201 lbs of milk and 1,967,506 lbs of cream, producing 998,312 and. 767,475 lbs of butterfat respectively. The total number of suppliers was 390 and tlhe average test over the whole of the milk received at the different, skimming stations 3.966. The weight of butter made from each pound' of butterfat was 1.18611b5, amounting to an overrun of 18.61 per During the vear the marketing of the product had been very . difficult, even their advisers at Home giving them advice at times that certain movements in tlhe market might be expected, and being directly contradicted by facts- . At Last meeting it was agreed to .support the Dairy Con-

trol Bill. This was going before Par- ; liniment shortly, and it could not be said at present just how it would go. It was, in the hands of the law-makers and they had to wait and see what would be done. He did not agree that * this was Tight; the dairymen had voted solidly for control and they ' were the men who had the right to ; say whether it should come into forc, e or not. Personally, he considered it i was a move in the right direction. ! Shipping was one of the difficulties j which the industry had to contend : against at present. If it were possi-1 ble to land regular fortnightly sup- j plies of butter on the London mar- j ket it would inspire a considerably better price being received than was the case at present, and New Zealand butter which was of as good quality as Danish, would command the same price. Control would enable the dairying industry to make such coni tracts with shipping as would allow of this being done. (Applause). A question which had given soma concern in Ihe past had been that of drainage. The farm had been used but it had been found that after a time t/he .ground became polluted, and the factory was up against the authorities. The Directors had decid'd to take over the pig farm and bad put in settling tanks, to take surplus water and aid in keeping down smell. He was pleased to say that, their efforts had met with success, and the authorities now informed them that there was no cause for complaint.

Last year it had been decided to go into the bacon business, and negoiiations had been entered into with the Bank of New Zealand in regard to finance for the purchase- of a business i.i WVdlingjton. The 1 Bank, however, was not prepared to. put up the necessary capital on the guarantees that the factory could supply.. It had then been suggested that the company take an, interest in the Feildmg works, but that was not found advisable on, examination, and the' matter was dropped.

As regards thei pig farpn which thd lactjory was now running, hie was pleased to • report a substantial profit. They had been selling butter milk at the Tate, of 5s per ton; £334 had been invested in pigs and .a profit of £149 made for the season, whilst they still had £135 wofth of pigsi on the farm, ihe net result lhad been a return of 13/6 per ton of butter milk, against the 5s for which they had Men selling it. in no way would the farm be a charge jn butterfat, and it was of vital importance that the drainage nuisance bad been dealt with. He formally moved thtei adoption of the report and balance sheet. Mr G. Gay seconded.

VALUE OF A RESERVE. Mr Walton asked why the rates, .axes and insurance had risen from £l7O 3s 6d last year, to £914 18s 3d on this balance sheet.

The chairman .explained that whilst the increase was large, it was more apparent than real. In. last year’s balance sheet marine insurance was lumped with cartage, freight, and commission, whilst this year it was shown in an account with rates, taxes and insurance. In answer to a further question, he explained that th|el increase in the cost of cartage, was due to the extra 200 tons manufactured.

Mr Walton asked Why it was necessary to lay up a reserve 1 of £BOOO. The chairman explained that tihie company lhad a lot to be thankful for that it had such a reserve. (Applause). Personally he thought it would be better if it were bigger. If the company could do its own financing instead of relying on London for finance it would be so much the better. When the company got an advance from the bank against its bill of lading, .it paid 35s per £IOO for the use of this money for the time —about six weeks—that the boat was going Home. This amounted to 14 per cent, to 20 per cent., reckoned on a yearly basis, that is charged for money to the dairy factories. Last year, owing to having £4OOO in, liquid reserves/ they were enabled to send consignments Home on free bills, and had savied these charges by doing so. (Applause). He was a big believer in reserves, but thought that debentures should be issued to shareholders against the money that was being put- in. . Unless this were done, the shareholders of some years to" come, who might not be the shareholders of to-day, would reap the benefit of what was being done. It would be much better to Issue debentures which could bei sold, by a man leaving the district, if he so desired. (Applause). NEW METHOD OF PAYMENT. The chairman said there was one matter which he would like to bring before the meeting and that was a scheme/ for avoiding the cost of sending individual cheques to suppliers when making monthly payments, and instead allowing the company to bank the money for them. If the scheme was agreed to they would send one cheque to, for instance the Bank of Australasia, for the whole of tnia amount owing to suppliers banking there, and the Bank would credit the individual accounts as per a list supplied. It would save expense and work to the staff and the banker assured him 1 that it was a sound idea. A check on the bank entries would be given by the usual butterfat record sent out which would show the amount which the supplier should receive. No credit slip would be sent out by the Bank, but the customers pass-book would show the entry. Mr T. G. Vincent pointed out that it was purely optional whether a supplier agreed to the scheme or not. _ It was for each man to decide for himself, and even if the scheme were adopted in principle any man. who so desired could receive his cheque in the ordinary way. _ After a. lengthy discussion, tne motion, which was seconded by Mr L. Dickson, was put and Carried unanimously. , I ELECTION OF DIRECTORS. 1 Messrs A. S. Death, H. Dyer, and W. E. Ivilsby were elected Directors. Messrs Arcus and Dempsy were ( elected auditors for the coming year. It was decided to increase the Directors’ honorarium from £IBO to £235 per annum. Mr Rod. McDonald said that as one of the oldest suppliers to the factory, he would like to say a few words of appreciation of the manner in which

the Directors and staff had carried out the business of the company during the past year. The company was, probably, in the best financial position of any on the coast, and this was du,e in a large measure to the efficient' men they had had at the head of affairs. He would say more, .he was a. man who travelled about a good deal, and he knew that the Levin Dairy Company was looked upon as one of the soundest in New Zealand. He did not consider that the Directors were receiving adequate remuneration for the work they were doing and would be very pleased to seethe chairman’s honorarium raised to £IOO, with a corresponding rise! to the other Directors. Votes of thanks to the staff; to Mr S. Rolston, the retiring Director; and to the chair, carried by. acclamation concluded the meeting.