WAITARA ROAD DAIRY COMPANY.

Taranaki Daily News, 7 September 1916, Page 2

WAITARA ROAD DAIRY COMPANY.

ANNUAL MEETING. The eighteenth animal mooting of the Waitara-Taranaki Co-operative Dairy Company, Ltd., was held at the factory, Waitara Road, yesterday afternoon. Mr. J. 11. Smith, chairman of directors, presiding over a good attendance. CHAIRMAN'S ADDRESS. In moving the adoption of the report and balance-sheet, already published, tho chairman said that the exceptionally high prices realised for the produce was due. mainly to the war. It wa» regrettable that the end did not appear to be in sight, so it was up to them in New Zealand to continue their duty to the Empire and send along as much produce as possible. The increase in the output of butter for the season was exactly the same as last, viz., 16 tons. The quality of the butter during the shipping season met with the approval of home buyers, but the flavor during some of the winter months had not been what it should be, this being apparently due to feeding on turnips. Some stringent steps must be taken to prevent the deterioration of winter supplies, otherwise the factory would suffer materially. As forecasted at last annual meeting, the cost of production had in-. creased, owing to the increased cost of coal freghts, requisites, etc. They had also suffered through the labor problem, having no less than nine changes on the staff during the year. Six new shares had been allotted to shareholders. Buildings and plant had been kept in an efficient state of repair and necessary additions to both had been made at a cost of £4SS 2s Id. The prospects for casein had materially improved, and the outlook for the future was very bright. The directors had only made a contract for the coming jcason, as they felt that beter prices would prevail in the future. The price accepted would permit of 8d per 1001b of milk being paid to suppliers, an advance of 31 per cent. The company now held SOS shares in the Box Company, on which there was a liability of £l5B Bs. With the increased output, it would be necessary to take up 04 additional shares this year. A proportion of the depreciation was being used to extinguish this as an asset. Prospects for the coming season appeared to be even brighter than for 1915. There was a very keen inquiry for the output, but the directors had so fai agreed to consign, though a sale could be effected at any time, should such a course be deemed expedient. The pjrice paid for the scajaonj, including bonus, averaged 10 l-4d per lb. butterfat. A special depreciation of £4OO had also been written off the property account or the payment would have, been higher. There was again a sum in the suspence account to be dealt with, consisting of £l7 10s profits accrued from Freezing Company's shares. Considering the high prices received, the directors had thought it expedient to write off a substantial sum for special depreciation, viz., £4OO, in addition to the usual Jd per lb. butter-fat deduction. Following this course would allow of the joint and several being burnt in the near future, which no doubt all would be pleased to see.

The sum o! £225 14s Od had been contributed towards the patriotic funds, by way of deductions from monthly cheques, as compared with £224 lis 2d for 1915. It would be for suppliers to say if this should continue. The directors had also donated a box of butter monthly to the Ladies' Committee of the New Plymouth Patriotic Society for soldiers in hospital. The lectures on agriculture had been very poorly attended. Starting from this week, it was proposed to test three times monthly, instead of weekly, and all returns would be completed to the end of each month. He expressed his appreciation of the work done by the manager, creamery manager, secretary, and the assistants, who by their attention to business very materially assisted to make the year so successful. •THE DISCUSSION. Some discussion ensued on the question of winter supply. Objection being raised to suppliers in the winter months being paid out as fully as possible, and also participating in the bonus for the winter months evenly with the rest of the season, when suppliers were only paid a limited advance. Mr. Leithbridge considered that winter suppliers were robbing the other suppliers. The chairman stated that the directors wished to encourage winter supply, which was increasing. The more milk put through in the winter the better. If the factory was idle during the winter, expenses would still go on. He thought the payment of the bonus ou the > winter milk could nut make a differance of 1 1-lid on the whole season.

A suggestion that each month's milk should be separately paid for, was thrown out, it being pointed out that this was impracticable. Mr. Hoskin considered that winter supply could not be done without feeding on turnips, which were a curse. Mr. Turnbull considered that the directors could have done better in regard to local sales. They were not within coo-oe of Bell Block and Lcppeiton. The only way to increase thest, was to push the product, and to do this they fhould encourage the manager to compete at shows. People bought on name us much as quality. Mr. F. Hoskins said that the manager could not take prizes if they fed on turnips. The by-law said turnips should not be used, and it should either be enforced or abolished. In further discussion, it was stated that besides competition of other factories it was the quality of their ontter, due to turnip flavor, that had caused the local trade to decrease. The chairman said that it rested with the suppliers themselves whether -hey made iurnipy butter or not. The manager had been instructed definitely to refuse any milk that had a deleterious taint. Not to say that, it would be refused next time. At the conference held in New Plymouth, it was stated that turnips could be fed judiciously, and they were no further ahead. The trouble was that the taint would develop in the butter, although it could not be detected in the milk. Mr. Hall said there was a difference between swedes and turnips. Mr. Turnbull said that owing to the high price of land and greater expense, farmers had to make as much money out of the land as possible, and turnips offered a convenient way. The trouble was to find a range of foodstuffs that would not taint milk. Turnips, swedes, mangolds, rape, ehou mollicr, etc., would all taint milk. Some farmers would prefer to get a lower price for an increased quantity of milk. Mr. Tate spoke strongly against turnip feeding, which would ruin the reputation of tho factory. If the butter i was tainted here what would it be like

when it reached the other end. Judging, too, from its quality, when only a part of the suppliers fed on turnips, he did not know what the butter would be if they all fed. They must either pay two prices or condemn the. milk altogether. He pointed out that whilst the butter might receive high prices when the demand was good, it might suffer in normal times. He. moved that the directors give the manager imperative, instructions to refuse milk tainted from turnip or other deleterious flavors, and in the event of the taint developing in the butter afterwards that the Covermnc-nt expert be obtained. This was not seconded. Mr. .1. Purdic moved, and Mr. A. Bowe seconded, that the manager be instructed to refuse all milk fed on swedes. Mr. Hoskin moved, as an amendment, that the manager be instructed to refuse all milk fed on swedes, white turnips, cabbage, or rape. This was seconded by Mr. Honnor and lost, as was also "the resolution, the latter by a very narrow margin. DIRECTORS. The retiring directors, Messrs, ,T. H. Smith and A. Rowe, were unanimously re-elected unopposed. Messrs. Pereival/and Messenger, were unanimously re-elected auditory at the same fee as last year. The chairman's honorarium was fixed at £2O, and the directors were voted 7s Gd for each meeting. GENERAL. The Articles of Association ■ were amended in accordance with notice, of motion so as to allow the directors legally to use the sinking funds to write off the company's property account. It wa 3 also decided to transfer £lB 10s credit in the. suspense account to the property account. Mr. hethbridge considered that suppliers should be getting at least lOd per lOOlbs milk for casein. The. chairman said that the present contract was only for ono year. It was resolved that the manager he instructed to hand to suppliers daily tickets showing amount of milk delivered and butter received, etc. After some discussion, it was resolved to adhere to the present system of testing weekly. There was also some discussion over allowing suppliers to deliver milk without signing the joint and several, the feeling of the meeting being distinctly against this. The chairman thanked shareholders for retiming him to the directorate CHAIRMAN OF DIRECTORS. At a subsequent meeting of directors, Mr. J. H. Smith was re-elected chairman.