PATUA CO-OP. DAIRY COY.

Taranaki Daily News, 18 July 1919, Page 7

PATUA CO-OP. DAIRY COY.

&NNUAL MEETDTGi The-annual meeting of the Patua Cooperative Dairy Company. Ltd., was lipid at the factory, Tataraimaka, yesterday a'ternoon, when Mr. W. Horieyiield, elm iruian of directors, presided over a good attendance of shareholders. REPORT. The fourth annual report for Hit year ending May 31, 1919, expressed gratification at such a substantial increase in the amount of milk received, especially as the number of suppliers showed a slight decrease. The quantity of milk received, and the figures relating to production, with those of tlie preceding year i" parentheses, for comparison, are a,s follows:—dumber of supplier's (37), 3a; quantity of milk received litv of butter-fat received (204,51ii1b5.), 227.2411b5.; average test (3.90 per cent.), 3.94 per cent.; quantity of whey butter made (13,»<>31bsJ, 17.0541b5.; quantity of cheese made (factory weight) (521,lfl"lbs.), "i57,43911i5.; quantity of cheese made per lb. butter-fat (2.54V1b5.1, 2.582 lbs.; lbs. of milk per lb. of cheese (lO.Ofilbs.), !).771b9.; average prke per lb. butter-fat paid to.suppliers for the yenr (Is 9d.1, Is lljd. The sum of £4OO had been written off for depreciation, and there remained a balance of £5473 12s 9d to the credit of the (profit and loss account. The sum of £4O had been voted as a bonus to the manager and secretary, and the directors recommended a further payment to'suppliers of 5%d jpr lb. on butterfat supplied during the twelve months covered by the balance-sheet, which would absorb .€5.Gs 3d, and leave a balrtncn of £1 Os Od to be carried to the new account. The balance-sheet showed that sales of cheese totalled £26.683 14s. The principal items of expenditure were: Wn ?es £902 8» Bd, cartage £228 9s'6d, fuel £324 2a 7d, management expenses £544 17s lid. export charges (freezing, shipping, and insurance) £366 3s. £4Ol depreciation had been written off; £17.042 9s lOd had been paid out to suppliers, and £5473 12s 9d had been carried forward. CHAIRMAN'S ADDRESS. The chairman, in morning the adoption of th? annual report, congratulated shareholders on the results of the year's working. The average price paid out to suppliers, viz., Is ll%d, must be considered very satisfactory, and compared very favorably with other cheese companies of a eimilar size and working under similar conditions. A most pleasing feature was thq. increase in the milk supply, which showed an increase of lmlf-a-million pounds, as compared with the previous year, and was the highest since the company was formed, this notwithstanding the fact that the number of suppliers showed a decrease of two, and that the leason was a late one, following a very severe winter. He expressed the hope that the increase would bp maintained, pointing out that tie factory was capable of turning out a much larger quantity of cheese than the present one; and by that means would increase the average payment to suppliers. He touched on the fact that increased taxation would be necessary for, many years, in order to meet the settling iflay after the war. The average test showed n steady improvement, which denoted better cows and improved methods of fanning. Tiie average cheese yield showed a substantial improvement. He stated that additional accommodation had been provided at the Moturoa Freezing Works, and butter and eheeso companies reed have no fear in tho future in that behalf. His predictions regarding the shortage of shippins space unfortunately, were ftillv materialised, and, though they were not compelled to store so much in the factory during tha summer, and so averted a heavy percentage of shrinkage, they had at the close of the financial year, 2551 crates of cheese unshipped, and over 2000 crates ■of this was still in the Moturoa Freezing Works. The amount ow ing by the Imperial. Government on this was about £2900, and until this cheese was shipped and paid for the directory were not in a position to pay out the full amount of the bonus, but were paying out that day, an interim bonus of 4d. He referred briefly to the working of the Egmont Box Company, which had been unable to declare a dividend the previous year, owing to the fact that the scarcity and increased cost of labor had eo materially reduced the output that they had to purchase from other mills, and it was found necessary to increase the cost of both.buttcr boxes and cheese crates. He anticipated that the past year's operations would allow a more satisfactory position. The manufacture of dried milk, sugar of milk, etc., was still occupying the attention of the majority of dairymen in the Dominion, and he detailed what had been done up to the departure for America of the New Zealand delegates, who were expected to return at about the end of the year.

He proceeded to briefly touch upo<, various items in tho balance-sheet, pointing out that the increase in wages' account was due to the larger milk pupply. 'Materials also showed an increase of £OOO, duo to the increased prices of iiractically all requisites. Depreciation had been reduced liv £2OO but a good rate of depreciation was still written off, and the result of the soniul policy adopted by tho directors in the past had warranted the reduction, nnd after one or two years more at tho same level, the indebtedness to the bank should be entirely liquidated. Mr. T. W. Morris seconded. <

Mr, 6. G. Grover pointed cut that the directors had written off very fair depreciation, having completely written off the water power. In another.;.year they would be able to reduce their liability to the bank from £lsoo'.to £SOO. But for writing off depreciation, they would have paid out 2s. * He, however, strongly favored the. policy adopted by the director®,- as it was necessary the company should be in a sound position, because fit present the industry was in the melting pot It was difficult to state what prices would be ruling after the contract with the Imperial Government had expired, or what boats would lie available to take their produce, as the Government would' probably want to ship their own produce first He pointed out that tliey could not tell what would be the results of the investigations made by the delegation that had been sent abroad in connection with the util'-ntion of the by-products of millc, and they wanted to be in J position to instal the necessary plant, because with the present high prices ruling "for land it was necessary that they must fbe in a position to make the moat oirt of their products. The delegation also was going to enquire into the -possibility of'the produce* plicing"!

tlie produce on the English market himself, thus saving considerable commission. In reply to question, the chairman stated that the balance of l%d would be payable in September or early in Oo tober. Space had been allotted i'or 700 crates. The report was then adopted. ELECTION OF DIRECTORS. For the five seats on the directorate, there were seven nominations, viz., Messrs. W. Honeyiield, W. Coombe, J. B. Bagley, 11. Woisin (retiring directors), R. H. Gatcby, A. 0. Penwurden and J. W. Espiu. 'Mr. G. CI. Graver did llot seek rc-.election, owing to having sold his farm. The election resulted: 11. Woisin 1)4, W. Honevfield 03, R. 11. rectors), R. 11. Gattenby, A. 0. Pen warden Espin 34 (elected), W. Coombe 3G, J. H. Bagley 33. Mr. E. P. Webster was re-elected auditor at a fee of £lO. A vote of thanks and confidence in tho manager (Mr. Harvey), and staff was unanimously carried, and it was also unanimously resolved to accord a special vote of thanks to Mr Shognn, first assistant, \vlio has been appointed manager of the White Cliffs Dairy Company. Votes of thanks were accorded the retiring directors. Some discussion ensued on the position of new shareholders. It was pointed out that Inst year it had been decided that new shareholders should be charged a premium, but this had been found unworkable. The old shareholders had paid over £2 for their shares, and it did not seem right that new shareholders should have all the benefits ai £1 per share. Mr. A. 0. Penwarden considered that interest should be paid on paid-UD capital, and he gave notice of motion to that effect for the next annual meeting. During the discussion, the chairmrta out that the company icquircd all the milk possible, and the introduction of a premium which would have to be paid in full before shares could be issued to a new supplier might drive suppliers away. At a subsequent meeting of directors, Mr. W. J. Honeyfield was re-elected chairman of directors.