SHANNON CO-OP. DAIRY COMPANY.

Shannon News, 16 August 1927, Page 3

SHANNON CO-OP. DAIRY COMPANY.

ANNUAL MEETING. The nineteenth annual meeting of shareholders of the Shannon Co-opera-tive Dairy Co., Ltd., was held in the Druids’ Hall on Saturday, the chairman (Mr R. W. Taylor) presiding over an attendance of 30 shareholders. REPORT AND BALANCE SHEET. The directors’ report and balance sheet (which was published in Friday’s issue) were read and adopted.

COMPANY’S STORE DISCUSSED. Referring to the balance sheet, Mr W.. T. Jewell stated that primarily he was a strong supporter of the company’s store. In going through the balance sheet, lie had noticed that the gross profit on the store sales was £2,821 13s 3d, and after paying wages, and other expenses, there was only a nett profit of £!74 10s 8d shown. To him this seemed an exceedingly small nett profit on a turnover of £27,185 15s, 5d as during Jie last few months the Company’s prices had been the same as those charged bv the Farmers’ Union Trading Co. at Auckland, whose balance sheet in proportion showed a much larger nett profit. A private firm which showed such a small profit would soon find itself in the bankruptcy court. This date of affairs was either caused by indifferent buying or the expenses were too great. He also noticed that the stock had increased by £IOOO over last vear, which showed that although the store at its inception started with nothing, tliov now had goods to the value of close on £6OOO, which in other words was profits accumulated. Mr Stiles said he would recommend that in future the store working account should be kept separate from the factory account. He was not concerned in showing a large profit and was pleased to see a small nett profit. Mr Chrystall said Mr Jewell had opened up an important question, but lie was of opinion that possibly the bulk sales had been the cause of the low nett profit. He then went on to say that the management of the factory had been excellent. The cost of production was 1.659 d per lb and the price obtained was Is 3d per lb., but the over run had enabled them to pay the cost of production and an extra lid per lb. This, he maintained, had not been beaten by any other factory in the Dominion. Mr J. Ryrie entered a strong protest against the prices being charged for goods at the store, contending that shareholders could purchase cheaper elsewhere. He read out a list of goods giving comparisons between the store prices and outside firms. Mi- G. Stiles objected to unseasonable goods being stocked. They should not handle lines outside of farmers’ everyday wants. The store should be run on safe lines. Mr R. Law said he hoped the policy in the future will be the same as when the store - was founded, and that was that the store act as an- agency to supply goods to the shareholders at prices as reasonable as possible. Mr C. Speirs said lie would like to see the store cut out and the company confine themselves solely to the manufacture and production of butter. He pointed out that a shareholder -wishing to make purchases could always do so through the company’s secretary. Mr Bowk'er opposed closing the store, asking if they lost the store, what ueie they going to. pay for goods locally. Mr James contended that the store was an expensive luxury, as goods could be purchased cheaper elsewhere. The chairman closed the discussion by stating the question could be brought forward when the general business was being dealt with. ELECTION OF DIRECTORS..

Messrs R. W. Taylor and W. E. Barber, the two retiring directors, being the only persons, nominated for the two vacancies, were duly re-elected. Messrs' Henry Kember and Son were re-elected auditors at the same remuneration as last year. EXPORT !OF PORK.

Mr Chrvstall said the directors had decided to” give the suppliers an opportunity to say whether the liability of paying the reclamation to Dalgety and Co. for pigs exported to Britain last season should be borne by the companj or the individual exporter. The amount to be refunded was £B9. He pointed out .hat thev must do something to save the pig industry and the position would have to be considered. . _ Mr Barber moved and Mr Tippler seconded, “That the company stand to Dalgety and Co. for the refund of £89.” Mr Jewell said that, was forming a orecedent. How would they be getting on next year? The chairman said he had no hesitation in saying those who had exported iiaxl benefited bv yonsideraibly more than £B9. This remark drew differences of opinion from some of those who had exported. The motion on being put to the meeting was defeated. Mr Chrystall, while not supporting what happened a year ago, contended that the principle was right. He suggested that when pork fell below a certain price, the company or an association of companies, should consider the advisability of subsidising the nett export of pigs. He said that if New Zealand have to absorb the whole of their pigs, there was going to be a glut. He would like his suggestion to be a recommendation to the directors. Mr Stiles said the question was too speculative. They would have no weight unless combined factories took the matter up. He was of opinion that the farmers should act on their own. DAIRY CONTROL BOARD.

Mr Jewell, dealing with the present constitution of the Dairy Control Board, held that the personnel of the Board was too large and expensive, owing to the fact, that about three-quarters of their business had gone under the altered conditions. It had been suggested in the House, he said, that the personnel should be reduced and that they work in conjunction with the Meat Board. He would suggest a motion that the number be reduced to three and that they work with the-Meat Board^

thus saving expense. At present the Board was only doing executive work. Mr Chrystall said he was opposed to it. He hoped the Board would not be merged with the Meat Board, which was not efficient and was out of date, their sympathy being with Trusts. To do so would be absolute folly. If it had not been for the Government they would have had the Dairy Board operating to-dav. He said they wanted producers ’ ‘‘representatives only on the Board as the Government representatives did not have one penny of interest. Mr Stiles said he had always been opposed to the Board. They had done well in the past without it and they did not want an expensive Board. The personnel should be reduced. If Mr Jewell separated his resolution by deleting the portion about merging with the Meat Board, he believed it would have the support of nearly the whole of the producers. Mr. Jewell said it had been a question of policy to have a full Board. Mr. Jewell then moved and Mr. James seconded: “That this meeting of shareholders of the Shannon Co-opera-tive Dairy Co., Ltd.,' protest against the large personnel of the Dairy Control Board and that we suggest that the Board be cut down to five producers’ members only,’’ a copy of the resolution to be forwarded to the Hon. Mr. Hawken, Minister of Agriculture. An amendment by Mr. Chrystall, seconded by Mr. Bowker “That the Board consist of seven producers’ representatives only’’ was defeated, the motion being carried. A RECOMMENDATION.

Mr. Woods (Foxton) moved that it be a recommendation to the Directors: “That instead of one person acting in the dual capacity of secretary and stores manager; that these be separate positions, making one head for each de. partment.” The mover pointing out that it was difficult to get one person to efficiently suit both positions. Mr Carter seconded the recommendation, which was carried. VOTES OF THANKS.

A hearty vote of thanks was passed to Mr. J. Aim (manager) and his staff, also to the Chairman and the directors. It was remarked that the care and attention to the business of the shareholders by the directors and manager gave the whole of the suppliers every reason to feel proud of them and they wished them to know that they appreciated their efforts.

On the motion of Mr. Tippler the suppliers were thanked for supplying high grade cream, thus assisting the manager to produce a good article. The hope was expressed that there would be no slackening up in this respect. HERD TESTING.

At the conclusion of the meeting, Mr. J. Fergusson, representing the executive of the Manawatu Herd-Testing Association, addressed those present on-herd-testing. ' He stated that the Association had started at "Rangiotu four years ago with 1600 cows. Last year they tested 8300 cows and this year it was expected to have 12,000 cows. Up till this season they had not invaded Shannon and Tokonfaru, but across the Manawatu river they had some 2000 cows last season. They proposed, if sufficient inducement offered, to operate in these two localities this season. Their system was to divide the district into groups of 1500 cows, with a competent man in charge, who was equipped with the necessary gear to carry out testing on each farm, which he would visit once a month, testing night and morning. The cost would be 4s per cow to new members, but as the Government gave a subsidy of £BOOO, which works out at Is per cow, the farmer got this benefit, which reduced the cost to 3s per cow. Each group had its own committee, who also had representation on .the Executive, which met once a month. t After answering a few questions, Mr. Fergusson was thanked for addressing the suppliers. On the motion of Mr. R. Law it was decided to recommend to the directors that the Company subsidise herd testing as follows: One shilling per cow towards the group system and sixpence per cow to the Association.