MANGOREI DAIRY COMPANY

Taranaki Daily News, Volume LIV, Issue 87, 3 October 1911, Page 3

MANGOREI DAIRY COMPANY

AXNI.'AL MEETIXG. The sixteenth annual meeting of shareholders (if the Mangorci Dairy Compimv was held in the Egmont Village Tlnll yesterday. Mr. A. Morton (chairman of directors) presided over a large attendance. AX IXTERF.STIXG SI'EBCH.

Tiie report and balance-sheet, as already published, were read. In moving its adoption, the chairman said that in commenting oil the year's working the first tiling to notice was the conditions that had prevailed. These had affected the snpplv not only, at Mangorci hut also throughout Taranaki and the whole Dominion. He referred to the prolonged spell of dry weather, which was of unusual duration, it having affected the industry to the extent of probably £'250.000. ITe pointed out that last season, when they consigned, there was every expectation, based on previous vears' results, that the market would be high. This was an expectation common to many factories. A new feature had arisen, however, viz., the enormous increase in the Australian out nut. Formerlv it had been said that the output of Xew Zealand and Australia was so small as to be merelv a flea bite on the Home market. This, however, had been materially altered of late years, and the greatest increase was noticeable last season. In supnort of this lie quoted from Weddel & C-o.'s annual report, which showed that during ten years the Australian output had increased six-fold. Tliev were now exporting half as much as Denmark, whereas ten vears ago they were exporting one-twelfth as much. The increase, in the Australian output last year was 15,625 tons over the previous season, and when it was considered that the total export from Xew Zealand wan 1.5.852 tons, it would be seen that the Australian increase was a factor to be taken into consideration as alTecting the prices. He pointed out that much had been made of the difference in price between Xew Zealand and Danish butter. For a few weeks the dilTerenc was ISs, viz., Xew Zealand 105s, Danish 1235. Taking the average right through the season | the difference was f)s tld, as against I.os flj last year. There were several reasons for the difference. First. Xew Zealand butter' did not come into direct competition with Danish butter: secondly, it was marketed under different eondi- J tions; and, thirdly, there was a strong prejudice amongst English people (who were naturally conservative), against I anything new. Danish butter was used mainly in the Xorth of England, London. and the South of England was supplied from Xormanby, Holland. Ireland, Xew Zealand and Australia. Xew Zealand butter was supplied in quantities every year for the purpose of taking over to the Continent, there to be blended, and returned as prime French and Xormanby rolls. They would notice that this season large quantities of unsalted butter had been purchased. This would be blended as he had mentioned, and sold in England under other names at an enhanced price.

Another matter that. called for com- . ment was the extraordinary high prices I that were, ruling for the winter output, and also the great shortage at that particular {line. Dairy farmers had been charged with forming a ring or combine in order to keep the price up, so tluit the laboring man in the cities would have to pay a high price, and thus increase the farmers' revenue. The absurdity of such an argument would appeal to them, and required no explanation. The high price was due to the fart that there was a smaller winter production than usual, ami also that the high prices ruling in the autumn had caused heavy shipments at that time. and. moreover. South Africa had taken large quantities of the April butter. This, of course, could not be looked on as other than satisfactory.

lii perusing the balance-sheet they would notice tlmt with the diminished output there was considerable diminution in tlic expenditure. This was accounted for bv more up-to-date management at the factory, and stricter supervision, the requirements, both at the various creameries and factories, being kept down as low as possible, ft might perhaps lie possible to reduce the expenditure bv installing better machinery, which, of course, would need further expenditure of capital. In the capital account, a gratifying item was that in the Freezing Company the whole capital had been paid up. so that any division of profits meant actual cash to them. Last.year they, had received Is ."id. He outlined the satisfactory position of the Freezing Company, which was the property of the dairy fanners. He also referred to the advance that had been made by the Egmont Box Company. from whom they obtained boxes at a shilling, and with the present bush held the company would be able to supply at that, price for ten years at least. Tie contrasted this with the fact that five or six years ago a private concern was suggesting Is 3d as the price for boxes, and had stated that in a few years the price would probably be Is fid. The whole property belonged to the farmers of Taranaki, and he trusted that for manv years they would feel the benefit of it. TITK OUTLOOK.

The chairman also discoursed for a few moments on the outlook for the coming season. Tie emphasised the fact' Hint for many vears past it had been the feeling of the directors and of the majority of the suppliers that a policv of consignment was 011 the whole the best, to pursue. This year, however, prices were at a very high level, and six or eight weeks ago the insurance companies, on account of rumors of war (which was now an actu.il fact) wore increasing rates. Tf complications onsned. and England were drawn in, the ri<k of shipping to the Home market was a large one. Tie was not going to assume that the directors knew the war was jfAing to happen, but they considered the price. liy.',d per lb. net for ordinary make of salted butter, was a high price, and he felt sure that the majority of suppliers would agree that the action of the directors Mas wise, ami (hat the best intnv-'s itf tin 1 company had been consulted ill regard to the sale. (Applause.) He believed that for years to come the general rule of prices would be high, and that, for many years there would lie ar. inc. :i., ; 1 demand for butter and clie"se. Tiie fact, that, those factories with dual plants were going in (for cheese, and that all new factories were turning their attention to cheese, made the i-i Mspeefs for butter better than ever, lie is convinced that for years lo emne the i aiand for our produce would he very great. It was formerly quite unj usual lo see our produce outside KngI land. A large quantity, however, now

went. lo (he Continent, where the de--111:1 nil ivai trreat.er than iU producer* eonM hi it il Tlio Continental tenilenov \v:i- iHii'T for Minnufiict.iiring than pro(liici:!:r. T!i"fi-fore tilt- prospect* were VCI'V I>i . .ni'-lii-'inn, li« nrjred each individual farm, r (•-, idvantafje of the lii.-ii I'i'ii 1 - rui'tiir lo the utnio-f extent. viz.. by ninkiii',' use of improved methods, and liv 'ioiinr in for more pnltivating. so that thev nuirhl larffelv increase their production. evil if they did not dom>!e it. Air. Chard seecyided its adoption. THE IHSCCSSTOX. The h:ilance->h(,'ct evoked considerable discussion.

In reply to Mr. MuihK. tlu: chairman/ stated that the Box Company had paid [ interest during the year, and that interest had been credited against the 1 bank interest. Mr. Baxter said that he noticed .-ClfiO ' had been expended this year on water , power. lie would like to know if they ■ I were getting value for this expenditure; ■ also when it was going to stop.

The chairman said it had been expended in putting a weir across the river Waiwakaiho to replace one washed away. It would probably last for all time; at least, he hoped so; but the floods in the Waiwakaiho might upset his calculations. The water-power saved them £l5O per annum in fuel and labor, and well repaid any outlay. JMr. Baxter remarked that last year 10 per cent, depreciation on plant and water-power had been deducted; this year 7 per cent, and 5 per cent, respectively. Enough had been saved by this to convert a 3-16 d bonus into Vid. Depreciation should be a fixed percentage each year. There had been a great saving of fuel at Egmont Village and Kaimiro on account of better management, and he considered a similar reduction could be made at Kent Road, Albert Road and Mangorei. He also objected to any soh or near relative of any director being employed in the factory. In reply to Mr. Ellerm, the chairman pointed out that the electric motor liad been installed as a ata.nd-.by. .

Mr. Reeve considered, that some of the creameries which cost 6o much should ho closed and their suppliers go in for home separation. Mr. Barton, remarked thart the suppliers at such expensive creameries should have a further sum deducted from their payments. The creameries ihstaneed were liurworth and Smart road.

The chairman pointed out that the increased cost at these creameries was due to the decreased supply. Land near the beach suffered from the dry weather more than -that further away. It would, be a cruel, unjust, and arbitrary action to still further penalise them. Some discussion ensued on.,the fact that a tender had been accepted for but-ter-milk at £25, whereas iit was the j iowest of four,- the highest being £3O i 12s. j The chairman explained that had any other been accepted, it would have been necessary to erect a tank and stand at a cost of £l9 14s Cd. In three years they would have gained £l6 lfe at the cost of expenditure of £l9 14s tfd, and the tank would be of no use as an asset. ;Mr. Baxter asked what benefit was derived from the payment of £3 10s per annum to the Employers' Union. The chairman said the benefit was considerable. But for the union, there might have been a strike three years ago, and they would have been paying higher wages to-day. After numerous other enquiries had • been answered, the report and balancc- [ sheet were adopted.

ELECTION" OF OFFICERS. I An election to fill vacancies caused by 1 tlie resignation of Mr. Phillip Wells and ! the retirement by rotation of Messrs. A. J Morton anil J. Hall brought forward five; nominations, Messrs. W. Mundt, Geo.' Herbert, W. 0. Stanton, A. Morton and •las. Hall. Messrs. Bocock .and James' were appointed scrutineers. The elec-1 tiqn resulted:—,T. Hall 110, A. Morton' 104, VV. Mundt 104, Ceo. Herbert 83, j and W. G. Stanton 57. The first three j were declared elected. | Air. \Y. de 0. Ogier was elected auditor. | Mr. J. Hall, in returning thanks for his election, referred to the question of a director's son working at the factory. He pointed out that .with the probability of a strike looming ahead, it would I be a good thing if farmers' sons learnt I the business, so that in the event of a I strike they could carry on the factory | without any difficulty.* The hul in quesj tion had entered the factory an«l was I doing well. He also pointed out that ) fanners-' sons would rightly be given I preference over outsiders in the event of | any vacancy. ! PASTEURISATION.

The chairman stated that this question had been adjourned from last year. When referring to it then, he did not see any urgent reason for it, but thought that within a few years the Government might compel all factories to adopt it. A couple of months later he had received a circular asking what steps the factory had taken in the matter. It had been asserted that where milk and whey was pasteurised cattle and pigs were healthy, but experience had proved that our own district was very clean and that there was no need to go in for pasteurisation. Since last April every pig at the Inglewood .bacon factory had been slaughtered under Government inspection, and less than % per cent, had been condemned, the lowest percentage in New Zealand, thus proving the district an Absolutely clean one. INDEPENDENT TESTING. The dissatisfaction that exists in some •quarters in regard to testing was discussed. Mr. Hall brought the matter forward by stating that lie was in fa.vor of an independent tester if noit too costly. The chairman said that some four or five years ago neighboring companies had been approached on the matter, but were not favorable. It was too expensive for the company ito go in for on its own.

51r. Mimdit said the test appeared to be going down. The best way to improve" it was to breed better com Shareholders, however, would not do this if dissatisfied with the test. He favored an independent tester. Mr. Baxter was well satisfied with his test, but would move "that this meeting is in favor of appointing an independent tester, providing that satisfactory arrangements can be made with other companies as to the cost." Mr. J. Williams seconded. Mr. J. It. Rowlands did not .favor the appointment at present. The resolution was carried. . GENERAL. Votes of thanks were accorded t# Messrs. Ointer and Taylor, managers respectively of the Egniont Village and Kaimiro creameries, for the economical manner in which these creameries were worked last season. In reply to a question, the chairman said that suppliers would be supplied with butter at Is per lb during t.he summer months, but during the winter mouths the .price would be re-arranged.