RAHOTU DAIRY CO.

Taranaki Daily News, 1 August 1916, Page 3

RAHOTU DAIRY CO.

"•; ANNUAL MEETING. The annual meeting of the Raholu Dairy Company was held in the Rahotu Public Hall on Monday afternoon, when -Mr. W. G. Green, chairman of directors, presided over 3G suppliers. REPORT AND BALANCE-SHEET. Tlie report showed that satisfactory results had attended the year's working. On closing the books, the amount to thp credit of profit and loss account was £5324 9s 10d. out of which £ISC 3s 9d had been written off to cover depreciation of the company's property and plant, and £l3l 12s 2d had been appropriated to provide for interest on fully-paid-up shares, leaving a balance of £.->OOG 13s lid, out of which t".c directors proposed that £4746 9s be applied to a further payment to shareholders of 4d per lb on butter-fat supplied during the year, and the balance of £2GO 4s lid carried to next year's account. This will make ni, \ erage payment of 17.15 d per lb on - 1 . ei'-fat for the year, in addition to ;.,. crest on shares, and the balance eouiu. bo held as a reserve until the returns for cheese in store and on the water came to hand, when the balance could 'be paid out if thought desirable. The balance-sheet showed cheese sold and on hand totalled £22,915 2s fid, and butter sold and on hand £3139 Cs 9d. The following statistics were also submitted:—Milk received, 7,95G,503ib; cream received, 30941b; butter-fat, 297,2381b; average test, 3.7; cheese made (sale weight), 702,4841b; butter made from starter, whey, cream and second grade milk, 19,3131b; cheese per lb but-ter-fat, 2.031b; butter made, 32,0901b; overrun, ,15 per cent. CHAIRMAN'S ADDRESS.

The chairman referred to the fire which had recently taken place in New Plymouth, resulting in the destruction of the company's books. The season had teen a fairly good one. They had handled more milk than during the previous season. This had necessitated various alterations, which would be completed in time to cope with the new ■season's milk. Last year there had been a drop in the cheese market at the cud of the season from l-OSs to 775, and this had resulted in a loss of £315. But for that the pay-out would have been Is Od. The Rahotu directors bad always been careful to state in the report what actually had been paid out, not what might be when any surplus was received. The manager had a great deal of trouble ivith second-grade milk. The saving of £llO in fuel proved that the installation of the new boiler was justified. All charges had increased considerably, rennet especially so. Supplies of this were likely to be short, but the company had sufficient in hand and in view to carry on next season.

Mr. G. F. Tyler seconded the motion,

In reply to questions, the chairman said that 574 crates out of a total of •iIQO had been second-grade. This had nil been made before the enforcement of grading. As soon as second-grade milk was made into butter the grade notes for clieese jumped up from 82,~"84 and 80 to 90 and 92. Milk grading was commenced in January, but, unfortunately, for some time the secondgrade milk was made into cheese with the rest, Mr. T. Willcox stated it was understood at the commencement of the season that the directors had adopted a consignment policy, whereas it since appeared that half the output wos sold. The chairman said that although it was the original intention to consign, this was never confirmed. After the Government had commandeered onethird at PA&, the directors received an offer of 7%d for another one-third, which they decided to accept. Mr. Willcox considered the report was a very meagre one. Referring to the balance-sheet, he stated he considered that 5 per cent, depreciation was not sufficient, and he contrasted their action in writing off :£IBC with that of the Okato Company, which had written off £2975 in one year. No depreciation was written off the cottages nor the whey plant. The directors had thought it necessary to allot 730 new shares, which looked like taking from one pocket to put in anotler. He referred to the increase in the cost of boxes, etc., and wages, which he-.considered out of proportion to the increase in output. The chairnif.u stated that year by year the rrici of boxes was increasing, as also, was the sum necessary for wages, which was r. matter beyond the control of the directors. He did not consider it a good plan to write off too much for depreciation, as by so doing they wrote down their assets. The financial position was good, as the tank overdraft had been reduced from £SOOO to £1639 in the past three or four years. Mr. Gibson supported the directors in selling last year. It was the safest policy to sell a part of the output. Under the circumstances, they were probably wrong, but it was easy to be wise after the event. He considered sufficient depreciation had been written off, considering that a considerable amount of repairs, etc., had been effected. The directors had not lost sight jif the question of utilising water power. The report was accepted.

6ECOXD-GRADE MILK. Some discussion ensued over secondgrade milk. Mr. T. Millar opposed the grading of milk. Milk not fit to make into first-grade cheese should be sent home, and not put into the whey vat to be made into butter. This placed too much power in the manager's hands, as after the milk was in the vat there was no tangible evidence of its quality. The chairman said that the quality of milk had given the directors considerable trouble and as a result they had sent for the Government expert, who said that certain milk was not fit to be made into cheese. Immediately this was taken out of the vats the grade rose from &1 to 02 points. The grading system was a good one, and should be universally adopted. As to Ihe possibilty of judging the quality of milk at the stage, the manager said that after milk had onee proved to be secondgrade he adopted the curd test. It had been proved that one supplier's milk had caused the cheese in the six vats to be second-grade. ELECTION" OF OFFICERS, For fherthrce vacancies on the di'cc icrute, Messrs G. F. Tyiee and A, W Phillips who retired by rotation wre re-elected unopposed, and for the v.icn::ev cum.id •)■,• ihe retirement of -Vr J': ul \Yi!ir.i::. Mr. A. F. Chapman wxi tlecicd unopposed. I Mr. H Sioekcr was re-elected .r-Vtor, the iv:r.ur.e:v.:io;i be:::;- the snirr -- hist

INDEPENDENT TESTING. In accordance with notice. Mr. T. Willeox moved that a complete system of independent testing, sample taking, and control be adopted by the company. Ho pointed out that at present they wore not paid on the weight of the milk, but on its butter, fat contents, and that the manager had campkto control of the sample once the milk had passed the factory stage. Some check was wanted. They had an auditor to check the secretary," and the manager was to some extent checked !>y the grading, but there was no cheek over the quantities, and leakages might occur that could be avoided. Good managers who, ho considered, should servo a five years' apprenticeship, would welcome the change. He favored a locker system, the test to be taken by an independent tester in the presence of a director. Mr. P. James seconded the motion. Mr. Gibson considered that the problem was a difficult one. The company was not in a position to pay an independent tester. Mr. A. F. Chapman pointed out that any supplier who was not satisfied with his test could be present when it was taken. The chairman said that managers had nothing to fear by the introduction of independent testing. The great objection was the cost of carrying out the proposal. The directors had carefully considered the matter and had given instruct:-,.. , that in the ease of any dissatisfaction the supplier could have., a sealed sample sent away for testing. Mr. Willeox considered that unless the sample was under control the appointment of an independent tester would be of no avail. The resolution was lost, GENERAL. ' _/ Votes thanks were accorded the directors and the chairman. At a subsequent meeting of directors, Mr. W. C. Green was re-elected chairmaa.