RAHOTU DAIRY COMPANY.

Taranaki Daily News, 2 August 1917, Page 7

RAHOTU DAIRY COMPANY.

ANNUAL MEETING. The tenth annual meeting of the Rahotti Dairy Company was held at Rahotu on Tuesday, Mr. W. C. Green (chairman of directors) presiding over a good attendanca of suppliers.

REPORT. Tlio report stated that the directors ore pleased to show that satisfactory results had been obtained in the year's working. The realisation of consignments not sold on the closing of the accounts last year enabled a further payment of Jd per lb over the butt,er-fat supplied during; the yonr 1915-l'G. During tlio year 1910-17 an advance has been made of Is 3Jd per lb butter-fat,, and on closing the books there remained to' the credit of profit and loss account a slim of £4587 2s 2d. Out, of this the directors had applied £293 5a 3d to provide for depreciation of the company's factory and piant, and sot aside £l3O 9a [2d to pay interest at five per cent, on fully paid shares, leaving a balance of £4107 7s 9d. The directors propose a further payment of 'per lb butter-£at over the whole season, which Will absorb £4030 7s fld, and leave £l4l 10a Id to be carried forward, or otherwise dealt with. This will make the actual payment for the year 1» 7id per lb butterfat, in addition to interest on fully paid shares. Cheese on consignment not yet accounted for had been valued on a safe basis, and the amount to be received for same might show a substantial increase over the price at which it had been valued. The directors regret that Mr. Evans had been compelled by ill health to resign his position a$ manager Mr. Angus Cameron nad been appointed to fill the position. The directors had given serious consideration to the position as regards fuel, which was daily getting scarcer and increasing in cost, and would discuss With shareholders the question of installing water power at the factory. Statistics submitted were as follows:—Milk received (cheese 0,276,876 lbs, butter fl98,O051b»), «,875,0001bs; cre.«m, 3731 Ibe; bntter-fat (cheese 226,3981b5, butter 28,8001bs), 256,1891b5; average test, 3.66; cheese made, sale weight, 574,1*58 lbs; butter- made from starter, whey, cream and second grade milk, 13,8581b5; cheese per lb butter-fat, factory weight (less shrinkage) 2."*>lb3; butter making—butter made, 33.5241'b5; overrun, 1G.4 per cent: average price received per lb butter, Is 4y 4 d; advanced per lb butter-fat, Is 3id; official average grade, creamery butter, 89.29; whey butter, 80.26. cheese, 90.

Tn moving the adoption of the report and balance sheet, the chairman stated that at the commencement of thi season the directors had arranged to sell half the output of cheese at 9 11-Md, and the balance was being shipped on open consignment. The Government, as they know, later purchased the cheese, and that, of courso, altered their arrangements. Owing to several of the large suppliers having gone in for dry stock, and also on account of the very dry Bummer experienced, the output had been less this year by 15 per cent. Working expenses during the year had been much higher. Wages account showed a rather big increase, due to War conditions and also to the company having paid their late manager while on sick leave until the end of June. Butter and cheese in siock had been valued in such a way that would no doubt show a surplus As they would now have to depend more on coal, owing to wood being almost, unprocurable, a coal bin had been built. The question of water power had been put oil from time to time, but he thought that tliey should now let a contract for the work if possible. If would, no doubt, cost more than in normal times, but fuel was becoming a serious item. The factory plant had been overhauled and put in fairly good order for tho coming season. The late manager (Mr. Evans) who. he regretted, was still in the hospital, resigned owing to ill health and Mr. A. Cameron, of .Glen Orona, liad been appointed out bf 20 applicants and taken up the position. Mr. G. R. Tylee seconded the adoption.

Mr. G. Gibson, one of the directors, traversed the season's workings, pointing out that the milk received showed a decrease of 1 1 ,011,0031b, or 12.65 per cent. TJiere were two reasons far this: The dry season causing the supply to go down generally, whilst some of their suppliers had either dropped out altogether or had sent a smaller supply. The butter-fat received showed ft decrease of 42,0001b5, equal to 14.14 pet cent., the test also being lower. Cheese made showed a decrease of 127.52011® or 18.15 per cent., Whilst the yield of cheese j per lb of butter-fat was .OSlbs, less. There Was some compensation in the fact that tho overrun had increased by 1.4, whilst the average grade was also] increased, viz., creamery butter ,09, whey butter .91 and cheese .42, It was easy to see how the position was not as good as it might be when the increased cost of labor and the decreased supply were considered. It had been decided to pay' out an dxtra 4d, making Is 71d for the season, and he urged them when comparing "their pay-out with that .shown by other companies to remember that their balance sheet showed actual pay-out and not as many others did, what it represented with depreciation, etc., added. He had calculated that including depreciation, interest, butter-fat levy ( £742), etc., the earning capacity of the company had been slightly over Is 6%d. Mr. T. Willcox doubted the accuracy of this statement.

Continuing, Mr. Gibson said that 301 new shares had been taken up. The factory had been written up, owing to the installation of new Weighing marines and vats. No depreciation had been written off the residences, which were worth more than book value. He considered that the Bhares in the freezing Works were a good asset, but thought some provision should be made for writing down the box company's shares, which were the Worst asset/ the company had. Stock in hand showed an increase of over £SOO, but was a good asset. Depreciation at 7Vi per cent, was written off, which he considered a good policy. The directors were not in a position to compare the relative costs of wood and coal, as not sufficient coal had been used on which a comparison could be based. He referred to the valuable service rendered by the chairman in placing his practical knowledge at the company's disposal during the illness of the manager. Tho company had been put to one expense that should not be necessary owing to having to employ a man to see that suppliers did not take more than their correct share of Whey and he urged suppliers not to lose sight of the fact that all Were directly interested in the welfare of the factory. A CRITICISM.

I Mr. T. Willeox, who stated that supftliers only had one day a ia Which

to criticise this company's affairs', took advantage of tho opportunity to criticise the balance sheet, which he did at considerable length. In reply to a, Swies of questions by him, tho chairrann Stated that M3olbß of whey butter had been manufactured. He could not tell the average price as the final payments had not been received. In tho balance sheet it had been valued at below Is. Cream suppliers 'had been' paid at tho rate of Is 4jd per lb batterfat. li G per cent, of second grade had been manufactured. Continuing, Mr. Willcox asked why the average price of' cheese, which he estimated at 9.<«Sd, was not mentioned. He referred to the

high cost of manufacture, wliich on figures given totalled 3,«4d per lb of but. tcr-fat, and if cheese alone was taken tho cost as far as he could see worked out at 3.9Gd, or equal to over lid per lb of cheese, whereas another company under three roofs, manufactured at I%'d per lb. He referred to the high cost of fuel, equal to £4 per ton, and urged the Installation of water power. Wages were abnormally high. The average test, 3,(16, was very low, but the main point was the low yield, which was 2.53 lbs of cheese, whereas on the test it should have been 3.72, a loss to suppliers of 44, and this <wUli the loss of over Vid on manufacture meant a loss of 2d per lb to each supplier, n serious consideration. He also criticised the action of the directors in deducting 30 per cent, from the whey taken W suppliers and also in allowing water to be run into the whey. He compared the pay out with other butter and cheese companies, and stated that if it had been

a normal year the pay out would have been very low, seeing that when cheese I was at f)i/,d they had paid as high as Is 2d which was considered low and this year with an extra 3y 4 d could only pay Is 7jd, He thought also that greater depreciation should have been made. He considered the pastueriser should be replaced with 1 prw moje up to date. The directoj-3 h'ad 'had estimates Te water

power theft years ago, and were agreeably surprised at the low estimate including turbine, but could not see. their way to instal it, and missed their opportunity. Now he thought it would have to be installed, when machinery Was unprocurable and labor hard to get. The chairiaan admitted that the yield Was too low, but explained the causes, whieij h 1? thought would !be non-recur-ring, The manager 'had not been instructed to deduct 30 per cent, of whey. It had been reported that water was run into the whey, and two men were fined. He did not consider, the pasteuriser obsolete. Mr. Gibson said that the power was shelved owing to the difficulty of having to go on to Maori property, and they wished to obtain the freehold. Mr. Baily said that the yield showed factory weight less shrinkage and this was a bad year for shrinkage, owing to the storage condition. To Mr. Lawn the chairman said that If the directors could see their way clear to instal water it would pay in* teresfc on the cost. Mr. Lawn favored tW company endeavoring to obtain ft scow and run about 1(H) ton of coal to the "beach, preferably at Opunake. The -hair-man said that the matter had been discussed but -was considered impracticable. Mr. Chapman considered that if w»t«r power was obtained it would mean a considerable saving in the fuel bill, which was £455. He pointed out that when the factory was first built he was chairman and they considered the matter then and had surveys made and obtained a water right from the public trustee. ,He also favored the company going in for a motor lorry, preferably in conjunction with other companies after the war.

The report and balance-sheet ifrere then adopted.

ELECTION 05 DIRECTORS Messrs. W, C. Green and G. Gibson, the retiring directors, were re-elected unopposed. Mr. C. T„ Mills, iwho Was appointed auditor on t&* death of Mr. H. Btocker. wag elected auditor, GENERAL. 'A Vote of sympathy with the late manager (Mr. Evans) in his illnoas was passed. Mr. Willeox moved that in the event of any moneys coming to hand a3 a result of or in connection with, last season's operations, the directors be recommended to pay out same on butterfat supplied without undue delay. A circular was received from the NCW Zealand Farmers' Bacon Company.—No action taken. A letter was received from a Chtistchurch ten offoring to make rennet at $4 <pcr 10' gallon keg, the company to supply its own veils aiid kegs.—'lt was "resolved that the con>pany purchase veils providing a satisfactory arrangement can he made for the manufacture Of rellbet. The chairman was voted a bonus of $lO. "" « ' CHAIRMAN,