PATUA DAIRY COMPANY.

Taranaki Daily News, 20 July 1918, Page 7

PATUA DAIRY COMPANY.

ANNUAL MEETING. The third annual meeting of the Patua Dairy Company was held at the factory on Thursday, when Mr W. Honeyfleld, Chairman of Directors, presided over a good attendance of shareholders. REPORT. The annual report for the season ending May 31st, 1918, showed that the sum of £GUO S s Id had been written off for depreciation, and there still'remained a balance of £SIS4 18s Sd to credit. £35 had been voted as a war bonus to the manager and secretary, and the Directors recommended a further payment of Gd per lb. on butter fat supplied during the war which would absorb £5112 3s Od. The annual statement was as follows:—Number of suppliers, 37; quantity of milk received, 5,2*4,123 lbs; quantity of butter-fat received, 201,%7 lbs; average test ; 3.90 per cent; quantity of whey butter made, 13,593 lbs; quantity of cheese made (factory weight, 501,103 lbs; quantity of cheese made per lb butter-fat, 2,547 lbs; lbs of milk per lb of cheese, 10,06 lb. average price per lb butter-fat paid to suppliers for the year; 21d. In moving the adoption of the report and balance sheet, the Chairman congratulated shareholders on the result of the season, the payment, though less than last year, being very satisfactory. Last year the milk supply showed a decrease of 7591 His, and this season a further decrease of 18(1,280 lbs as compared with the first season, which covered nine months. There was also a decrease of one in the number of supplier-'. This decreased supply was to ■some extent 'duo to the changeable weather conditions, there being some very dry spells during the summer; thougli the autumn was a good one winter came on much earlier and more severely than for many years, and th» milk supply fell away to such an extent that it hardly paid to run the factory during the winter, the supply being the lowest ever received. Many factories had from this cause closed down altogether until the cows came in. The war was also responsible for the decrease, owing to farmers in some eases and their assistants in others being called up, necessitating either closing up the herd or reducing the number of cows milkedThis was the position throughout Taranaki a* borne out by the number of clearing sales. The decreased supply, coupled with the increased cost of labor and materials, had considerably increased the cost of manufacture, per pound. Milk had arrived at. the factory in better condition. As a result the output of whey butter had decreased 3319 lbs. The average cheese yield had decreased nine points, representing a rather serious loss.

He referred at some length to the delay in the negotiations with the sale of cheese to the Imperial Government, and also to the difficulty of finance due thereto, and also to the shortage of shippiny. The banks, however, were very good to them and the pirectora were enabled to pay out Is for the first six months, this being increased to Is 3d as soon as the first advance was received from the Imperial Government. The Company had been given a rebate of .■COT 193 10s out of the total of £612 8s Stl paid. They had also been successful in securing an additional £ Sol 4s 4d from the Imperial Government, being the fyll market price on cheese shipped prior to flic date of the completion of the sale to the Imperial Government on January Mi, ]917. This enabled an additional l|d to be paid suppliers, making the average payment for that season Is 10d. Since then it was discovered that the Company had beet, over paid £224 4s 7il, and tins had to be refunded out of this season's funds, lie also referred to the difficulties of storage last season, and to the gloomy prospects for shipping this year. There were still 70,000 crates in store, of which Putua owned 1273 crates. He de-

tailed at some length the stepj taken by the Producers Freezing Works Company in providing additions at Moturoa and also at Smart Road, where butter* 1 would he stored. It would be necessary to double the capital held in the Freezing Company, and Patua would require to take up 52 new shares at £lO each, but this should provide all the storage required for'many years. They had received £Ol 12s Od interest, rebate of chargea on cheese stored, which had been credited to the Share Depreciation Reserve account. Referring to the (Egmont Box Co., he stated that this company was having considerable difficulty owing to so many men being called up for military service. They had purchased white pina wherever possible, and their mills had turned out the maximum quantity possible under adverse conditions. The cost of cheese crates had increased slightly, and as they were being turned out of unseasoned timber, the Patua Company had endeavoured to get a stock in hand for seasoning. As white pine was fast disappearing it was probable that next year the Box Company would have to supply cheese crates in rimu. The average i Cheese yield showed a slight decrease, and was due to the necessity of storing for a, considerable time the December and January make in the factory owing to • the old works being full and the new . cheeso store not being quite ready. The i weather was very hot and the shrink- ; age was exceptionally heavy. Dried milk was occupying the atteni tion of most dairymen at present, and a meeting was to be held at Hawera on [ Saturday to discuss the question, and , probably a committee would be set up to r obtain full particulars regarding the ; erection of a factory, etc., and also the i future prospects for casin. He then . traversed the balance sheet- Deprecia- . lion at the rate of 20 per aent had again . been written off. j Mr. Grover stated that in regard to [ prices for next season producers were trying to be placed on the same basis as . Canada, *and if were done they 1 would obtain 10 ! / B d. If dairy fanners 1 were placed on. the same basis as the i wool people, they would obtain equal to 1 11 Jd. One big feature last season was the i shrinkage, which, it was estimated, 1 meant to coastal factories Id. This and . other increased charges meant a difference of a l>/.,d. Referring to dried mi'lk , he did not think it possible to estab--1 lisli a factory so far from the railway, . but it might be possible to go in for . sugar of milk, which could ho manufaci hired at a central factory. The company , had in hand a heavy stock which had ail i been bought well and he instanced salt t which had been bought at £6 10s and t was now worth £ls. He considered the season had been a most satisfactory one The Chairman stated that they would pay out that day 5d bonus, and'pay another penny as funds were received from the Imperial Government. Mr W. Aisli thought that suppliers had a great deal to be .thankful for in the pay out, and the directors deserved to be congratulated on their careful mant agement. Mr G. A. Adlam also spoke in high , terms of the work done by the directors i in the face of various difficulties. The report and balance sheet was adopted. ELECTION OP DHU3OTORS. f All the five directors retired and there . were seven candidate*, viz., Messrs W, Honeyiiield, W. Combe, G. G. Grover, H. ] Woisin, (retiring directors) J. H. Bagley, , W. D. Linn and S. J. Candish. Mr D. r' McAllum, did not seek re-election. The election resulted:—Messr 9 G. W. Grover 06, W. Honeyfleld 03, W. Combe 60, J. W. Bagley 57, H. Woisin 43 (elected), S. J. Candish 41, W. D, Linn'3o. Mr E. P. Webster was re-appointed audii tor the fee being increased to £lO. GENERAL. In reply to Mr Aish, the Chairman stated that he did not consider the Company was yet in a position to purchase shares. The director, had, however, now provided that new suppliers should pay a premium for their shares, so that suppliers who wished to sell- shares, should now he able to get face value for them. Mr Penwarden favored the Company obtaining tumber'rights over a bush section so as to ensure a supply of fuel, which was now becoming acute. The Chairman paid a high tribute to the work done by Mr D. R. McAllum, retiring director, since the inception of the Company, and it was unanimously re-' solved to vote him £lO 109 in appreciation of his services and also a hearty vote of thanks. Votes of thanks were accorded the Chairman and directors, also Mr E. W. Garner (secretary), the manager (M* J. H. Harvey) and the staff, particularly Mr N. Shogren. At the subsequent meeung of directors Mr W. Honeyfleld was re-elected Chair man.