MANGOREI DAIRY COMPANY

Taranaki Daily News, Volume LII, Issue 206, 5 October 1909, Page 4

MANGOREI DAIRY COMPANY

ANNUAL MEETING OF SHAREHOLDERS. There was a very large gathering of the Mangorei Co-operative Dairy Co. shareholders yesterday at the Egmont Village Hall for the annual meeting ofthe company. Mr. A. Morton, chaiiman of directors, presided. The annua! report and balance-sheet, copies of which had been circulated amongst tlie shareholders, were taken as read.

THE CHAIRMAN'S REVIEW. The chairman, in moving the adoption of the report and said there were one or two matters to which he would like to refer. First, there was a gratifying amount of milk received by the company, due to the better care taken by the suppliers, who were endeavoring to produce more milk 1 than it had been possible to produce in | the past, their efforts being directed to-; wards the improvement of their herds and their pastures. Not only had the . supply of milk been greater, but it had been richer in butter-fat, the average test having, for the first time in ths company's history, reached 3.9. This was a further proof that the suppliers were improving their herds. During the season the company had been enabled, by reason of the good milk supply, to keep every one of the skimming plants going the whole year through, which, of course, resulted in considerable practical benefit to the shareholders. CONSIGNMENTS.

As they were aware, the season's butter had been sent Home on open consignment. The outlook at the beginning of the year had appeared particularly favorable to a consignment policy,

and a considerable number of factories had been led to consign in the hope that prices realised would be in nr. cordance with the prices being offered by purchasing agents here; Unfortunately tlii» trade at Home went from bad to worse, and the results were not as good as had been hoped. Still, the results in themselves were very satisfactory, and the fact that they had been

able to pay out to suppliers 10 l / tt (r pur 11), for butter-fat showed that the market liatl not been in a very bad sta Thcv would note 011 reference to the balance-sheet that £l2B hart been allocated to this company by the Freezing Works Co., in which they were shareholders, this amount being the Mangorei Company's share of the profits ijiaJo during the year ending June 30 last. This also was very satisfactory, and showed that the policy adopted of carrying ont the cooperative policy to the fullest extent was a right and proper one. They would also notice that the share-holding in the Egmonf. Box Co. had been largely increased. The Box Company was a company wfio.se shares were almost entirely held by the dairy companies in Taranaki, and had been formed with the object of obtaining timber and manufacturing boxes f j»* (lie u«e of the shareholders. The Manure i Co.. as shareholders, had during the year to a*«ist In finding the cash "wherewith to p'm-hase additional bush area*. The Boy Company now "had sufficient timber to provide boxes for another • f teen years. .

REDCCTIOM IX COST. . Shareholders would notice also that the expenses on all points (wages, salaries, working expenses and management expenses) were less than in ,1? previous year. The difference was very sujrhi. hut still it was a. reduction. Mr. Morton referred to the satisfactory settlement of the dispute filed by the'dairy factorv employees against ' the dairy factory companies and proprietors, TURNIP FLAVORS.

Speaking concerning the pasteurising plant rmsitly Installed at the maiu factory. the chairman s-aid that the initiative came from Mr. Cuddie, tlic Dairy Commissioner. Last May Mr. Cuddle asked the directors' permission to jsithe factory in a series of experiment., aimed at t lie elimination of "turmpy" flavor in butter. He had singled out this factory "became he knew he could depend on handling turnip-flavored ini'k here—the company allowing its supplier? to use turnips in winter—and because lie understood the company had had had some trouble with "turnipy" butter. The doctors recognised that if this very strong food flavor could f op eliminated from the butter, it would be a very great thing for the industry So the experiments wore set afoot. The Dairy Commissioner sent two experts in pasteurisation, although they had not previously had experience in turnip flavors. It was not •until ton days had passed that the difficulties were, over- | come, and then the article produced was !a first-class one. It was thus established that, using proper precautions, the 1 suppliers would now be able to fc,cd | their milcli cows on turnips and supply the milk to the company. /Without the use of turnips or some other such root crop, the desired winter supplv, of course, could not be obtained. The pas teurising meant not only this. H meant that the company's staff at fte factory would be enabled now to turn out butler of ail improved quality, and butter which would not lie.subject to the same measure of deterioration as in the case of the non-pasteurised articK 'Die ni'\v plant, which would necessitate the installation of a larger boiler at the main fiu lorv, would be large cnonirh to deal with the whole of the cream of the company. This brought him to the ! question of ,

EXCESSIVE MOISTCRE COXTEMT in butter, which had caused factory directors and managers of late a good'dell of thought. It had been found that a high moisture content was followed by quick deterioration "in quality, but tills did not apply to pasteurised butter, with which might be incorporated anv amount of water. This information was not based merely upon the opinions of the Government experts, but upon tlis opinion of leading companies who had adopted tile pasteurising system. The net result to this company was that it. would now be possible to run every bit of plant from Ist September to 31st August. (Applause). . Winter dairying wns assured, provided the suppliers would exercise reasonable precautions in the feeding of root crops to their herds. For -four or five years past the suppliers had been allowed to. feed their cows on turnips, though not always with satisfactory results. Now there should be no difficulty in bringing in early cows, and supply milk early in the season, from which the staff could manufacture a really first-class articie. WILL IT KEEP?

Regarding the experiments quoted, the question was often asked of this huttc, "Will it keep?" Was there any reason to suppose that if this butter were frozen, and defrosted again a couple of months later, it would turn out well? There had lieen no trace of "flavors" in the butter, according to the opinions or Government graders and experts, and others to whom the butter had been | submitted. On Saturday last he had taken opportunity of the presence of Mr. Cuddie in Kcw Plymouth to have the Department's six boxes opened at the Motnron, Freezing Works. It opened up well. It had not then been defrosted, but that had now been done, and Mr. Cuddie had*~sent him the following telegram that morning:—

"Experimental butter examined this morning. Consider it lias kept very well. Am satisfied with results of our work at Mangorei factory.— Cuddie."

That butter, continued Mr. Morton, had boon submitted tn nil the conditions as if it i ia <i i )een shipped Home, and the grader roclconed on? box was quite as good as Danish. They would see, then, that if the local market ivere poor in winter, and fair prices ruled at Home, the company could sli'iv its winter lrottor to the English mar- • lief. i

The combined ehurne and buttenvorkcrs In the factory were doing good work * n<?roase d the capacity of the * iv ant * P^ Curing the 14 yeats of the companyjg history there had been great changes in ttto process of manu-

facture, and the pasteuriser and the combined churn-buuerworker were the latest. There was not a single dairy factory between Tikorangi and Hawera t r nat had not one of the latter appliances. Mr. Gledhill: They're condemned m England, aren't they? Mr. Morton, in answer to this and a : few other interjections from the same shareholder, said that Mr. Newton King had given them the word* of a Tooleyetreet butter merchant. But that opinion was merely blufT. Why, the Okalo and Puniho Company had jufct' installed one,and Mr. Newton King was chairman j of directors. In the whole of Denmark they would not find a single box ehurn. THE HURWORTH COMPANY. The chairman reftfred to the proposals to incorporate he Hurworth Company with this. The Hurworth concern j had been too expensive as a factory, owing to the small supply. It "was with- | in six miles of Mangorei main factory, , on a good road, and the proposal was I to run it as one of the Mangorei cream- | eries, on the following terms: "When I the Hurworth supply was less than GOOO 11) for the' highest week in the year the payments for milk should be reduced by j ! /sd P°r pound of fat; between GOOO and I 7000lbs the rate of reduction would be %d per lb; 7000-80001bs, *4d; and ] above SOOOlbs, on the same footing ae the rest of tliL* company. That would t make the cost of running that creamery , the same as this company's creameries

PROSPECTS. The prosper!* for the coming season 1 were good. They were going to have a first-class season here. The spring, though very wet, was early and very warm, the cows had come in earlier, and grass was abundant. Proof of this lay m the fact that the company was making ten boxes more butter than at this time last year. Prices on the Home market promised to he better than last year; certainly no worse. The directors had again decided to adhere to the policy of consignment, believing that to be in the best interests of the industry. Companies consigning year in and year out, and taking out of the market all that was in it, must come out right in the end, for it had no middlemen's ; charges to pay. I Mr. Oliver seconded the motion.

In answer to Mr. Puekeridge, the chairman said the benefit from the National Dairy Company's co-operative marketing scheme was mostly an indirect one, chief among which was the i fact that the company had the benefit of the services of the Association's Home agent, who had the fullest access to the books of the agents handling the butter of the companies which had appointed him. Another indirect benefit, as the Mangorei Company's shareholders well knew, had been manifested in tne reduced price at which they had been able to procure basic slag through the Association. As for direct benefit, he mentioned the fire on the Paparoa. She had a large quantity of New Zealand butter on board, ineludingi some of Mangorei's. By his action that butter had been made to fetch 124s per cwk-, instead of 108s, its market value. He contended that tho Home agent had not cost the company a penny last year.

Mr. Gledhill criticised several items in the balance-sheet, complaining of excessive cost of running the company. Mr. Puekeridge advocated closing down all creameries as soon as their daily milk 6Upply fell below lOOlbs. The secretary said no creamery had been below that lasf year.

Mr. Rowlands drew attention to the fact that in order to pay out 10.13 d per lb of butter-fat to 'suppliers, the com-

pany had contracted a bank liability ol £2OOO.

The chairman pointed out that at the commencement of the year the over, draft had stood at £290*0. Now it was £'2ooo. There could be nothing wrong with that.

Mr. Rowlands replied that this company was an expensively worked one, a remark that drew plaudits from the house.

Mr. Rowlands thought the directors had committed an error of judgment in consigning the output, the chairman replying that the shareholders themselves had stood for consignment. ELECTION OF DIRECTORS. Messrs Geo. Marsh and R. Price (retiring), J. Rowlands, J, Gledhill, W. G. Stanton, and Frank Reeve were nominated for the- directorate. The result of the poll was as follows:—Messrs Rowlands 101, Marsh GO, Price 45, Glcdhill 41, Stanton 30, Reeve 23. Messrs Rowlands and Marsh were .declared clecteJ, and returned thanks.

Mr. Hall moved a hearty vote of thanks to Mr. Price for his services on the Board, referring to him as a good and conscientious director, although, as he said, he and Mr. Price had frequently managed to oppose one another. Mr. Price acknowledged the complement, which he said came all the more pleasantly from Mr. Hall by reason of his explanation as to their divergent opinions.

Messrs .1. C. Davies (retiring audlto;) and E. JI. Tribe were nominated for tho directorate, and Mr. Davies was re-elect-ed.

SUdfIKSTKD CHANGE. Mr. Mumit said that there was r feeling amongst tho shareholders that the whole of the directors should retire each year. The chairman said that to do this the Articles of Association would have lO be altered. That could be done on'v flt a special meeting l>v notice of motion. This concluded the business. A meeting of the directors was held subsequently, when Mr. A. Morton was re-elected chairman.