MANGOREI DAIRY COMPANY.

Taranaki Daily News, 11 August 1917, Page 7

MANGOREI DAIRY COMPANY.

ANNUAE MEETING. . The Twenty-aecond annual meeting of the Mwig.Jrei Dairy Co. was held at Egmtrnt Village yesterday, Mr. A. Morton, chairman of directors, presiding over an Jittcndauoe of about 80 suppliers, RRPCTIT AND BALANCE SHEET. The wport stated that the financial rusulte of the year's operations had been a record. The quantities of milk and cream received are as follows:—Milk, 14,021,2211b5; butterfat contents of milk, 568,9181b5; average test of milk, 3.89 per cent.; cream, 268,2961b5; butterfat contents of cream, 103,8211bs; average test of cream, 38.69 per cent.; butter made, 790,5121b5; over-run, 17.55 per cent.; lbs of milk to each lb of butter, 21.8Slbs. During th- year £42,599 4s 7d has been paid to suppliers, being equal to 15,197 pence per lb of butterfat, and £825 7s 2d written off for depreciation. A further payment of threepence per lb on all butterfat supplied between September, \ 1, 1916, and April 30, 1917, had been authorised. As soon as it haß been definitely ascertained what amount will bo receivable by the company from the licensing authority in respect of sales made of butter for local consumption, it will be possible to make the final payment for the past year.

The balance showed butter sales and butter in stock £65,001 15s 3d. Wages and salaries £1502 12s, working expenses penses £llO4 166 6d, export charges £4244 7s Bd, butterfat levy £1955 13s 9d, depreciation £825 7a 2d; balance, £11550 9a 2d.

The chairman stated that the auditor, Mr. Davies.had died, and Mr. A. J, Tunbridge had been appointed to the position. CHAIRMAN'S ADDRESS. The chairman said that the first thing in connection -with the dairying industry generally was the extraordinary state of affairs caused by the imposition of the levy on butterfit. For the first time in the history of the industry an attempt was made to interfere with the prices ruling on the local market. Any interference by the Government in this direction must lead to trouble, and as far as the butterfat levy was concerned a disturbance was caused. He then detailed how the levy was made. He de--1 tailed the steps that had been taken to protest to the Government, and stated that as the result of these and of petitions ft vu hoped that when the matter came before Parliament, as it shortly would, an amount would be placed on the estimates sufficient to recoup them for the levy paid. The shortage of shipping was then referred to, the chairman stating that so bod was the position at the end of the s«itaon that there were 250,000 boxes in store*, but, fortunately, through selling In New Zealand, the Mangorci Company bad none in store. There was no doubt that when the new season opened there would be a large quantity of last season's butter unshipped. When this reached the London market in a few months' tiino its quality would have deteriorated, and thij fact, together with the dumping of such a large quantity, would hare the effect of depressing the market, though he thought the great shortage of butler at present existing in the butterproducing countries would more than make up for this, and that they would still jiet enhanced prices. Local production figures showed a decrease, as was only to be especlc' ?'nen

last year's unusual weather conditions were considered. The decrease in quantity was 23 tons, a considerable amount for a small district. The quantity of home-separated cream was increasing, and becoming very large, being equal to the milk received at the largest creamery. The overrun was the highest ever recorded by the company, due to the fact that for homo-separated cream the company only paid for buttcrfat received, whereas with milk a small quantity of butterfat was returned in tie ekim milk. The moisture testa diceloied the fact that butter was mads on regular lines and kept close up to the 18 per cent, maximum allowed by law. The financial position was even better than the balance sheet disclosed, because the 540 boxes which had been taken intu the balance sheet at Is 2d, had been sold at Is 7d, thus realising several hundred pounds additional. Then, the amount to be refunded from the butterfat levy was estimated at £1590, on a parity ' basis of twopence per pound, where'as this had now been fixed at 3 7-8 d for a portion of the season and 2%d for the balance, so that there would be an increase of £BOO here. The final pay-out should, therefore, be between Is 7|d and Is 80, but for the l»vy they would have been able to pay out In B%i to la BJd, which would have been better than many cheese faotoriei had done. The qucation had been raiseO as to | whether it waa advisable to change to cheese, but he thought suppliers should be so well satisfied with the pay-out that season/ and with the prospects for next season, that the question would not be revived at present. Th» direoiorr were much concerned over the advisability of manufacturing cheese, Misty 1»I cause the prospects of shipping cheese looked brighter. Two of the largest creameries had had the matter put before them, and had turned it / down, whijst unanimity had not been obtained at another branch, so matters \foulo go on as they were. If they could pay out, in the future as they had paid this g«&*. son no one wuuld regret that they had not made the change. Comparing the balance-sheet with the previous season, he showed that though •23 tons less had been manufactured the. receipts had been £BOOO more. Wages and salaries had increased, and would show a further advance next year, as the directors had augmented the aalary of every member of the staff (applause). Insurance showed a considerable increase, owing to the war. Being a good year, it was deemed advisable to write off heavily ire depreciation. There had i also been a good daai of expenditure i* oanattMfcißy » new drain la ooacreu, n tho oU one eaueed trouble at Uaea. V«v residences had been bujJt at Smart Boaa and at the main factory (butter maker) at a cost of £330, the old creamery and residence at Hurwortb. having been utilised.

It had been suggested that it would, be a good thing if the Imperial Government purehased the whole of the batter as wall as the cheese, as ty v*wM pa* them on a good wicket regarding shipping, and they would also know what their financial position would be. The previous day the whole of the butter producers bid been circularised to meet the Premier and arrange a-price at which the butter would be.sold to the Imperial Government (applause). There were, hj» said, many different Meas on the so£* ject. Some thought that it was not good business to sell to the Imperial Government. A meeting of butter factory representatives would be held within a few days, and on the 22nd instant, delegates would meet the iPre. niier and discuss the question, of selling > not only next season's output!, b,ut alea

the butter in store to-day. If they received a price that would return an equivalent to that paid to cheese factories they would have very little to complain of. However, that was a matter to be discussed.

He then formally moved the adoption of the report and balance-sheet. Mr. E. Gopperth seconded. In reply to Mr. Wells, the chairman stated that he had a definite aisurancs fr«m the Prime Minister that the levy would ii»t be again imposedMr. Gopperth asked how long the payment for patriotic purposes was to continue.

The chairman pointed out that three years ago a resolution was passed making a payment of one-eighth of a penny per lb butterfat for patriotic purposes to continue until such time as a war tax was levied. When the excess profits tax was introduced the directors took , this to be a war tax, and so discontinued the levy. Mr. Baxter considered Is 2d for winter butter was too low.

The chairman said an extra payment of 2d was being made on May and June milk. He pointed out the difficulty of assessing the value of butter this year. Messrs Chatterlon and Burrows did not think it fair that non-suppliera in to winter Aouid obtain butter from the factor/ at 1» 44, when the market pr'tc* was Is Qd or 1» 7d. The men who; sludged through the whiter were entitled to whatever was ju the butter, and he thought that the man who ceased' to supply should be charged market price. Tie report and balanco sheet wero adopted. ELECTION OF DIRECTORS.

There were three vacancies in the directorate, viz., Messrs A. Morton and J. Houlahan, who retired by rotation, and Mr. E. Gopperth, who resigned his seat. Messrs J. Houlahan and A. Morton were returned unopposed. The chairman, in returning thanks, said it was the first time that he had been rsturned unopposed, and he took it that the shareholders were satisfied with his 22 years' connection with the company. Mr. J. Houlahan also returned thanks. For the vacancy caused by Mr. E. Gopperth there were two nominations, and the election resulted: A. H. Taylor 154, L. Gopperth 33. . . Mr. A. J. Tunbridge was re-elected auditor at a fee of £l2 12s. CHAIRMAN'S SERVICES APPRECIATED. Mr. J. Hall, in high terms, referred to the valuable services rendered by the '■haiyiaa duriag the past 22 years. It wa*? a tftate to Mr. Morton's great ability that Mangorei did not have any butter iu stock at the end of the sea« son. He moved that the honorarium bo increased to £SO, and that the chairman be voted a bonus of £SO for his work during the three years of war. The 'chairman declined to accept the cause.

Tke Motion Increasing the honorarium was Mjrried. The chairman, l? returning thanks, !. stated that practically his whole time was taken up with public business. If his ability and services were considered of value, he was quite pleased to give , that ability on their behalf, and hoped , hj» would be spared to assist for somo time to come yet. CA9EIN. In reply to a question re casein, the chairman stated that the question should ■be dealt with on a co-operative basis, so that suppliers could get all there was in it. However, if the suppliers wished, the meeting could discuss the matter. A discussion took place, in which it was' stated the Egmont Village suppliers favored casein, and it was advocated that a ■plant should be installed at once. Mr, G, Oolson thought that the company ahouki eventually Instal a. dual plant, so that either butter or cheese «oold be manufactured. In view of the present shortago of cattle, suppliers' would be well advised to rear as many calves as possible, and therefore he considered tlioy should stick to butter at present, No action was taken. GENERAL. In reply to Mr. Gopgperfch, the chairman stated that the directors did not buy shares, but he thought the time had arrived when shares should be purchased. Mr. Williams suggested that the creamery managers be given power to re'ceive cream at creameries and to weigh it and sample it, The BhaiHKftn stated that something 'w«*ld kar« to be done in the near' -_ tM i& .** * h * we(un ""Wfcera were In*•**#s, vUlc the question of cartage* y** fewewkg a *a&ult one. Vbt» of thaake were accorded the ditectori and the rtaff. Xi> wae decided to inereasei the directors' honorarium to lfe f or each meeting attended, Instead of Ws jwr meeting for twelve meetings, the chairman to be.' included in phis payment