DAIRY COMPANIES.

Taranaki Daily News, 4 August 1919, Page 6

DAIRY COMPANIES.

MOA DAIRY COMPANY. TWENTT-FOtRTn ANNUAL MEETING. The twenty-fourth annual meeting of the Moa Dairy Company was held in Inglewood oh Saturday, when Mr. T. S. Bowler, chairman of directors, presided over an attendance of over 100 shareholders. REPORT AND BALANCE-SHEET, The report showed that the amount of milk received was 8,795,204 lbs., producing 359,430.27 lbs. of butter-fat. The amount of cream rocelved was 745,687Vfc1b, producing 279,154.21 lbs of butter-fat. The amount of butter manufactured was 333 tons. The overrun was 17.08 per cent., and the average test 4.08. The past year's working of the store had not been so satisfactory as previously, the net profit being £292 Is 6d. This was mainly accounted for by the sudden drop in prices ■ of stocks held. Everything in connection with the casein department had worked very smoothly. The company was at present installing casein plants at Dudley and Lincoln creameries. Out of the balanco to credit of the surplus account It was proposed to pay out a bonus of 2%d per lb. butter-fat. The balance-sheet showed that butter sales, etc., totalled £57,404 2s sd. The principal Items of expenditure were; wages £2662 10s Id, repairs and renewals £699 lis 2d, fuel £957 17s 2d, paper, boxes, etc., £1895 Cs 3d, working expenses, lorries, £428 Os lid. Advances to cream suppliers were £17,616 99 lOd, milk > purchases £23,148 17s sd, interest £4OO 6s, depreciation £7OO, freezing £766, insurance £350 9s lOd, salaries £260, leaving a balance of £6719 8s 9d. The casein account showed sales £1739 19s 9d, whilst the principal items of expenditure were: wages £143 10s Bd, fuel £B3, depreciation £B9. The store account showed that the turnover bad been £15,438 12s, the profit being £292. In moving the adoption of the report and balance-sheet, the chairman said that owing to several Influences, over which the directors had no control, the season just passed had not been as satisfactory as could have been doeired. In the first place, the weather was unfavorable during most of the season, consequently the supply was not as large as It should have been. The drainage of the man power of the district owing to the war had been very heavy, and on that account some shareholders have had to go ont of milking altogether and many others have had to reduce their herds. This had the effect of decreasing the output and increasing the cost of running, as twice the quantity of butter manufactured could have been dealt with, with practically no Increase in expense. Another important point was the lack of capital, which lie intended to go fully into later In the afternoon. On account of there being practically no capital coming in, they had to do all their financing through the bank, whose manager had assisted tbem very much. They had, however, to write off out of profits the sum of £SOO last year, and £1)00 this year, andlicxt year would have to reduce the overdraft by £9OO. This was making a big difference in the pay out, and would not occur were they receiving share capital as they should. Referring to the balance-sheet, he pointed out that the Increase of £341 in wages was accounted for by the employment of extra labor during the influenza epidemic, and by increasing the wages of creamery managers, consequent on an agreement being reached by which they supply their own horses, carts, feed, etc. The increase of repairs (£130) was accounted for by the extra cost of machinery, etc. Most of the renewals had been charged to this account. Fuel showed an Increase of' £4B. There was an Increase of £486 .'n requisites. The Increase of this Item every year was accounted for by the extra cost of boxes, oils, parchment, ammonia, etc. Since the last balance-sheet was Issued, the price cf butter boxes had advanced from Is 4%d to Is lid, this Increase alone amounting to £350. Interest amounted to £3lll. This large Increase was mainly due to the shortage of shipping. At one period of the year, the overdraft at the bank was over £13,000. The Taranakl Producers' Freezing Works Company had transferred the amount of Interest due to the company to Its share of the capital account in reduction of the amount owing on shares. The Egmont Box Company was also holding back Interest on shares this year. A number of Items showed a decrease on last season. Notwithstanding the increase in expenses and the reduced output, the cost of manufacture was the same this year as last. On August 20, Ihey were paying out a bonus of for (he output season, and further payments would be made when they received the final payment under the equalisation scheme. The directors also had decided to pay out a special bonus to suppliers equal to 5 per cent, on paid up share capital. He felt sure the coming season would be much better than last year. The men who had been fighting their battles would all be back again, and quite a number of farms that had not been milked on for some time, would be supplying this season, and he hoped the supply for the coming year would be very , much ahead of last year. Quotations of requisites were lower than they had been for Borae time past. He Impressed upon share* holders the necessity of Increasing the output, as by this means the amount of expenditure would be decreased. Mr. McMahon seconded. . THE DISCUSSION. Mr. Yeates asked what was the object of paying Interest on suppliers' share capital. The chairman stated that the idea was to obtain more share capital, as they were paying Interest to the bank, which it would be far better to pay to shareholders. In reply to a shareholder, the chairman said that they would probably be able to pay 2%d for casein. A supplier stated that he understood there had been a straight-out sale of 3d, and he expected that amount for his casein. The chairman stated that £3OO per year had to be paid to the bank on account of the casein plant. The test also was very high, and the company had not sold on a butter-fat basis but by the ton. The pay out also depended on suppliers taking shares In the casein. Mr. Stachurskl held that Mldlilrst had paid out 3d tb suppliers supplying from November 10th and 2%d to those supplying after. Why could not Inglewood do as well? The chairman pointed out that these suppliers got a better price as all guaranteed to supply 00 per cent, of their milk. Mr. Stachurskl said that Itntaplko suppliers started In October and supplied all their milk, and unless they received more than 2d they had decided not to supply any milk for casein this year. >., Mr. D. Todd said they would never have any satisfaction until they could finish the article themselves and have all that was in it. The chairman said that they would pay out 2%d if they did not have to keep back money In payment of the plant. Mr. Egarr asked whether a resolution, bad been passed preventing any one from transferring shares to their sons or successors in the event of selling their farms. The secretary read a resolution passed in October last which 1 stated that the directors would not transfer shares from dry shareholders, but were prepared to pay 5s for fullypaid up. shares. Mr. Egarr cited cases where the directors had refused to transfer shares from one man to his son, but had allowed the transfer of shares from another man to his successor. Mr. Yeates stated that he had intended to move that the company refuse to transfer any shares save to the company, and that the company purchase such shares at from 10s to 15s. A supplier stated that the chairman had informed him that ho could not transfer his shares to the man who had bought his farm and stock. THE STORE ACCOUNT. In reply to Mr. Yeates, the chairman stated that the £292 profit on the store was net profit. Mr. Far!) expressed his dissatisfaction with the store balance-sheet. He pointed out that last year with a turnover of over £IO,OOO gross, the profit on the store had been £llOO. This year the profits should have been more, as they had a very Urge stock in hand two yeurs ago and the prices had risen since. He considered the store should be closed. The chairman pointed out the difficulty of buying on a falling market. Mr. Egarr said that he had bought considerably from the store, and everything appeared to be still going up. Mr. Hopsqn said that wages had gone up about £2OO and this would reduce the profit. The chairman slated that there had been no Increase In the staff, but they had to pay the award fixed by the Union, this coming into ; force automatically. In reply to Mr. flooding, the chairman said that the outstanding accounts were being collected. A shareholders considered that the company made a mistake In changing the store from a bulk store. Another shareholder considered that the store was overstaffed, but the chairman questioned if there was another business doing a turnover of £15,000 per annum with a staff cf : four. The chairman stated that the outstanding accounts amounted to £l4O, owing by non-sup-pliers all over the town. Some of the money , had come in since. It was understood that If the' late manager sold to. any one but a ' shareholder without the cash he was to be responsible for the cash. ' The motion for the adoption of the , balance-sheet was then adopted. ELECTION OF OFFICERS. , Tot Uu**cn seats on the directorate Messrs. . *. 8, J" „,fl. Clonal,. X. * (odd, 0. >Y, J

Baldwin, J. Stachurski, D.. Todd and A. W. Yeates were elected unopposed. Messrs. O. E. Hen>vood, S. S. Pagan, and it. T. Williams did not seek re-election. Messrs. (J. W. Baldwin, J. Stachurskl, and A. W. Yeates being appointed in their places. Air. T. C. H. Nicholls was re-elected auditor, the fee being fixed at 20 guineas, an increase of 5 guineas. SHARE CAPITAL. , Considerable discussion ensued on the question of increasing the share capital in order . to Improve the financial position or the coni- ■ pany. A motion, proposed by Mr. A. W. Yeates and seconded by Mr. Angcrsfein, that the directors do net allow any transfer of shares except to the company and that the rumpany ; pay 10s per share to the supplier, wns lost. A motion proposed by Mr. C. W. Baldwin ; and seconded by Mr. Codd, that any one sell- : log out has the right to transfer his shares I to the incoming man was carried. On the motion of Mr. Todd it was re- ; solved to increase the share capital by Isi suing one additional share to suppliers per cow . based on last year's supply. Mr. Egarr moved that the cream supplier 1 and the milk supplier be placed on the same 1 basis regarding share capital. In the course of discussion it was pointed . out that at present the basis was one share to every 200 lb of butter-fat from cream sup--1 plied, or 150 Hi. of butter-fat from milk. > Cream suppliers held that they were entitled to some consideration, as they saved , the company fuel, etc. It was stated that at [ one creamery there were 16 cream suppliers , and four milk suppliers, and that it was not good business to run the creamery at a loss. Other suppliers held that the company only 1 agreed to take cream from settlers on tm- : metalled roads, and should limit the distance from which cream should be taken. ! The chairman pointed out that the Cream 1 1 supply was 40 per cent, of the company's supply, and they did not want to make I lie ; suppliers dissatisfied. The resolution was carried. GENERAL. Di reply to Mr. Taylor, the chairman staled that he could not yet say when the balance from the Government for last season would be available. The company would pay out at least Is (!',id for the season on butter-fat. He could not say when the equalisation fund would be distributed by the Government or how much It would be. In addition 2%d or 2%d would be paid on casein. Votes of thanks were accorded the manages and staff, the retiring directors and the cbals man. OMATA. ANNUAL MEETING. The annual meeting of the Omata Dairy Company was held on Saturday, between 40 and 50 suppliers being present. Mr. J. W. McKee (chairman of directors) presided. The annual report and balance-sheet stated that the balanco to the credit of the profit and loss account was £29?3 4s 2d, and the directors had set aside £507 10s for depreciation of the new factory and plant, horses and carts, etc., in addition to £ll3 18s transferred to reserve, leaving a balanco of £2291 16s 2d, of which £325 10s 7d was held In suspense pending the settlement of the equalisation fund established by the Government by deductions from export shipments. Of the £1955 16s 7d remaining, the directors had already distributed Id per lb. butter-fat over the season's supply, and proposed a further similar payment at the annual meeting which would total £I6OO 12s lOd, and leave to be carried forward £355 3s 9d. TIIO 1917-18 equalisation fund had not yet been wound up, and a further payment out of this fund had yet to be received, but the amount was . uncertain. A3 shareholders would be aware an agitation had been in progress for some time against the equalisation fund levy on the past season's butter, and the directors hoped that a very substantial refund would be made In respect <■' this deduction from all butter companies, me levying of which was most inequitable. During the year casein plants had been erected and worked at the main factory arid at Oakura, and although only a short season was possible, 2d per lb. butter-fat was paid for the skim milk, and £79 10s 9d written off the buildings and plant. The price obtainable for next soaaon was not definitely settled, but was expected to be 3d per lb. Negotiations entered Into with other factories to equip a co-operative drying factory had, unfortunately, j not been successful enough to enable It to bo ' carried through for the coming season, but it ! was anticipated that they would be successfully completed in tlitio to enable this and other companies to obtain in the following season the full value of the casein produced, by dry- . ing and marketing It on co-operative lines, and this would very materially increase the price j which can be paid for tha milk. The directors had met the suppliers at Koru and, If a , sufficient supply of sklm-mllk for casein can bo assured, were prepared to instal a plant there also, and thus enable all milk suppliers to obtain the full value of fho whole of their d milk. It was also intended to make buttermilk casein, as the directors were advised that a much Improved monetary return could be obtained for buttermilk In this manner, which < would assist in reducing the cost of manu- ' facture.

The chairman, in moving the adoption of the balance-sheet, stated that the reason the directors proposed that the balance of £355 3s 9d be carried forward was thot thero were still further amounts to be received out of the equalisation funds of the past two seasons, the amount being uncertain. As soon as the money was received It would be added to the balance, and such further distribution made, as the directors thought fit These amounts wero entirely independent of the result of the agitation now in progress for the equalisation fund contribution to be mot out of public funds, and If this agitation wore successful, the refund of the amount would bo equal to a further Id per lb. butter-fat at least. The over-run for the year was very disappointing, and had it kept ut last year's figure it would have meant approximately another %d per lb. butter-fat being available for distribution. A»summary of the actual payout showed that Is 4'Ad had already' been paid, a, further Id was payable that day, making Is 5%d, with a further payment to come, In addition 2d had- been paid for milk supplied for casein. Tho directors' endeavours to get a definite offer for next season's casein had so far failed and as late as yesterday tho casein company's manager stated tl\at he could not make any definite offer except for a three years contract. This for reasons explained in tho report, the directors do not desire to accept as it was against the Intorest of the suppliers, to tic up the casein for this period, as next season should see the cooperative drying factory In existence and a much improved return will then be assured. The average test was considerably higher at tho factory and creameries this season. The provision of the casein plant, etc, cost £OIB 4s 7d, the Freezing Company's shares absorbed £575, the Box Company's shares £45 10s, the completion of the new factory cost £458 4s 9d, making a total capital expenditure of £1696 IDs 4d; against which was depreciation £647, transfer to reserve £132 13s, capital paid up £9O 0s 7d, a total of £875 13s 7d, leaving a net capital expenditure in the year of £B2l 5s 9d.

The joint and several guarantee given by the directors was necessary to flnancn the immediate payment of the Id now being distributed and to provide for further expenditure if necessary to Instal a casein plant at Koru, etc. The arrangement for advances against butter in store wore very long delayed last season, and this reduced tho early pay out for milk and also greatly Increased the cost <>f Interest for tho year, but as the arrangement now made for advances held good until June, 1920, the arrangements made by the directors with the bank would enable a pay-out with a good milk supply of about Is 4d per, lb. butter-fat from the start of the season, In addition to from 2d to 3d for case, a total of about Is 6d straight out, and the directors considered that this would he a very advantageous arrangement for shareholders and better than had ever been done in the past.

After, considerable discussion, during which several suppliers criticised at length the working of the company's concerns, the report and balance-sheet were adopted. For the election of two directors in place of Messrs. Watson and Spence, who retired by rotation, three nominations were received, viz Messrs. Watson, G. Green,' and A. Smith. A ballot resulted in Messrs. Smith and Green being elected. Mr. -C. T. Mills was re-elected auditor for tho ensuing year. PEMBROKE DAIKV COMPANY. ANNUAL REPORT. The following report was presented to the annual meeting of shareholders of the Pembroke Dairy Company* held on Wednesday: The profit and loss account discloses a net surplus of £2.111! Os Cd, which will bo sufficient 10 pay a bonus (or payment) of 3%d per lb. butter-fat, making a total pay-out for the season Is 10'/jd. The further payment of 3Ud will absorb £2480 IBs' Bd, leaving a balance of £34 15s 3d. The final payment of the dividend Is independent of the shipment of all cheese at present in the cool store at New Plymouth. Season 1918-lfl: Milk received 4,088,2981b ■ average test, 4.00; lbs. butter whev, 12 823manufactured creamery, 1358; lbs cheeso manufactured, 499,153; yield, 2 64; lbs milk to lib. cheese, 9 32; butter-fat 170,1091bs; 5552 export and 13 medium cheese were manufactured during the period; the cheese forwarded to cool store, New Plymouth,- was graded as follows: 44,9r>41b5. Ist grade, 81691bs 2nd. grade Tho second-grade is equivalent to .75 per cent] (approximately) of the cheese manufactured. I Cost of manufacture per lib. of cheese, not Including milk: Materials 143, fuel .128, wages .442—1.011; charges „..< - to cool store .455 StHtlat Company aw ,m, gintral «*•

. penscs .470—1.090; administration expenses . .(175, depreciation .259—334, adjustments, 1 cheese shrinkage, etc, .274, total 2,715(1; cost , of manufacture lib. butter-fat into cheese, ini eluding all charges and Government shrinkage and adjustments 7.l7Ud;' sales of butter per , lib. cheese manufactured .438 d.