OKATO-PUNIHO DAIRY CO.

Taranaki Daily News, 30 July 1918, Page 6

OKATO-PUNIHO DAIRY CO.

r ANNUAL .MEETING. The liiirlecnlh annaiil meeting of iiio Okiitol'uiiilio Dairy Coinyany \.a* held in the ■lJenipton lUill, Ifcity, yesterday, when Mr. J. Woolridgc, chairman of directors, presided over a good atlcmlnacc of Shareiioldcrs. 'REPOET-

The repo.t showed that during t'f.e y?ar the following quantities of milk were received at tho several branches: Kaihihi, 4,:>12,-jMl'l> milk, 174,40111> but-ter-fat, average test 3.5!: Puniho, 3.724,7011b mii'k. 147,2271b butter-fat, average test 3.0.3; Lcith, 2,300,708'Hj milk, 94.01711) lmitcr-fat, average test 3.93; totals, 19.004,0-1011) milk. 415,7051b butterfat. After writing off £282 -2s 10d for depreciation, and setting aside £3OO to reserve account, the profit and loss account shows a credit balance of £9331 lis Bd, which the directors recommend be allocated to a dividend of 5 per cent, on all capital, amounting to £18(5 3s; J-stl per pound of Ibutter-fat supplied during the 1910-17 season on account of proceeds of sales of butter and refunds for that season, and a further payment to suppliers of id per pound of butter-fat supplied during the past season, making a total payment for the past season Is &d and 5 per cent, on capital, equal to an average payment of Is 9 l-10d per pound of butter-fat supplied. Threepence per pound of butter-fat to be paid at tho annual meeting, and tho balance when shipments of cheese are made. In conjunction with tho Warea Dairy Company, a motor-lorry had been purchased. The company had again been asked to d'ouble its shares in the freezing company, and would then hold shares representing £2400.

Table of quantities and averages compared with the previous season (in parentheses): —Number of suppliers, (50), 50; milk received (11,21121405*), 10.664.(HOIb; butter-fat (432,390 ft), 415,70511); cheese made (1,161,®3fi1b)," 1,062,4081b; pounds milk per pound cheese (9.721b), 101b; pounds cheese per pound butter-fat (2.001b), 2.551b; average test (3,86 per cent.). 339 per cent.; average price per" pound butter-fat (19W), 21 Mod; average grade, cheese (90.G3), 90.7.

The balance-sheet showed that cheese sold and in hand totalled £44.779 3s 6d. Tho principal items of expenditure were advances for milk £17,714 lis 9d, factorv requisites £2149 15s 2d, salaries £2091 £707 2s Sd, freezing and port charges £572 4s lod. insurance. £330 18s Id, investment fluctuation reserve £3OO, depreciation £2S2 2s lfld- There was a balance of £0331 lis Bd. CHAIRMAN'S ADDRESS. The chairman, in moving the adoption of the report referred to the various statements therein, pointing out that it had taken more milk to make a pound of cheese, although the average test was higher, consequently the yield was very much lower, .being .11 less. This was to a large extent accounted for l>y the additional shrinkage due to holding the cheese in the factory for so many weeks during the hottest weather, owing to storage congestion. The average grade of cheese had risen, and all the cheese made during the season had been first grade, a tribute to the manager and staff, considering the adverse circumstances. He also briefly referred to the marked increase in the cost of manufacture. As yet no definite arrangements had been made with the Imperial Government for next year's sale of produce, but the directors had anticipated a favorable Tate and had commenced paying out Is 4d, which it was hoped to continue, but conditions may arise that will necessitate a reduction. As a set-off against any probable depreciation in shares held in outside companies, it had been decided to create a reserve fund account, and £3OO had been set aside for this purpose, and this would be. added to from year to year. The salaries showed an increase, du» to a general rise all Tound.

Mr. C. Andrews secondedAfter a little discussion, the report and balance-sheet were adopted.

ELECTION OF DIRECTORS.

For the three vacancies on the directorate there were four nominations—viz, Messrs R. C. Henry and W. J. Gray (retiring directors) and L. Eustace and J. J. Carey. Mr. C. Andrews, the other retiring director, did not seek re-elec-tion, owing to leaving the district. The election resulted as follows:—L. Eustace 131, R. C. Henry 124, W. J. Gray 109 (elected), J. 3. Catty 91. Mr. E- P. Webster was re-elected auditor at a he of £lO 10s.

DRIED MILK AND SUGAR OF MILK.

In the course of his address, the chairman stated that the above subject had ibeen exercising the minds of dairymen lately. last year, estimating the whey at 85 per cent, of the whole milk supply, Okato suppliers took home 900,440 gallons. This, at the rate of 8000 gallons to the ton of milk sugar, would equal 120 tonj of milk sugar, which, at about 3s per pound, would amount to over £30,000, or three-quarters of the amount received for cheese. He understood that ic .would be expensive to produce the sugar of milk, requiring one ton of coal to reduce three tons of whey, equalling seven tons per day in tho flush of the sea.sou. He understood also that the plant would cost about £OOOO, whilst it va s estimated that the coal would cost £'5390 per annum. Mr. Grant asked if they introduced dried milk or sugar of m'iik, how did they expect co rear calves or pigs. Mr. Binnie pointed out that it was estimated that Okato, from its whey, could obtain sugar of milk valued at £30,000, and they were assured that the whey would still have the same feeding value for calves and pigs as at present. Mr. Grant thought that sugar of milk and dried milk talk would die out in a day or two. He thought the company should have stuck to butter. The chairman'.pointed out that the best pav-out by a butter factory was Is fid. Mr, L. Hunter did not think they hod done wrong in going in for cheese. Mr. Gray did not think that a small meeting could discuss sugar of milk and dried milk. It was pointed out that prior to the war sugar of milk was 7d per pound, ■whereas now it was 7s. After some further discussion, Mr. J. S. Ocmuett, a member of the committee sot up at Hawera, outlined what had been done sinoe tihe meeting. He considered that it was wise for any company to get all the information possible on any subject connected With the industry. It was resolved that it be a reeoni-, mentation to'th* Uirtctoa to co-wsemte:

with the otlher factories in whatever steps may be taken to obtain information. THE CARTAGE QUESTION. The chairman detailed the negotiations in connection with the purcliase of the motor waggon, stating that it had been decided finally to purcliase a White lorry in conjunction with the Warea Company, as it was decided there was not enough work for two lorries! The waggon,aa placed on the. road, cost £1484, and tho Okaio Company provided seven of the cost, Warea providing fivetwelfths. It was decided'that all cartage done for sirpliers. should- be debited against milk cheques- A board, comprising Messrs J. Wooldridge and W. Buinie (Okato) and J. Burgess and AClothier (Warea) had bean appointed to control the waggon, the garage, to be at Okato. In view of the congested storage accommodation, it had been built large enough so that cheese could be stored if necessary. This had cost £SS6, and was now rented to the. Motor .Board at a paying price. There was a proibaibility of a company being formed to do all the dairy factor)' cartage along the coast, 'ml, in that case, the garage would not bo too large. During a lengthy discussion, the chairman stated that it was estimated that there would be a saving of 5s per ton on the cartage. The waggon would also do back carting for suppliers. GENERAL. ' On the motion of Messrs W. J. Gray and L. Hunter, it was.resolved that ta» bank guarantee signed for the erection of the cheese factory should .be cancelled, now that the cheese factory debt had been extinguished. . • It was also resolved, on the motion of Messrs W. Binnie and W. J. Gray, that a new guarantee be circulated for signature by the shareholders,' if considered necessary 'by tho directors to provide working capital, in addition to the guarantee of £2BOO now in force.

Mr. Gray moved that the company discontinue the purchase of shares until six months after the war, hut tliat interest Should be paid on shares. He pointed out that owing to abnormal times and men going out of dairying, numbers of shares were being offered,' and there was very little prospeot of re-issuing them. Mr. W. Binnie seconded.

Mr. C. Andrews considered that this resolution could not lie made retrospective. It appeared to him, that they had the people's money, and now wanted them to leave the money to bolster up the business during the war. A heated argument took place between .Mr. Andrews and Mri Grant, the latter arguing that three years ago Mr. Andrews urged the erection of a cheese factory, which enhanced the value of his land, and he sold out and left others to bear the murden. Mr. Binnie considered that it Was a bad practice for any company to buy its own shares. : •■ •. ■ ,

The motion vras carried. ' • ■ Tlie directors were unanimously voted the usual lionoraTiunl. At a, subsequent meeting, Mr, J. Wooldridge was rc-eleeted chairman.