DAIRY COMPANIES.

Taranaki Daily News, 5 August 1919, Page 6

DAIRY COMPANIES.

SVAREA DAIRY- COMPANY, ( ANNUAL MEETING. • The twenty-tlilrd annual meeting of the Warea Dairy Company was held In the Warea Public Sal! yesterday, when Mr. W. Rumball presided over an attendance of about 40 suppliers. REPORT. The report showed that the particulars of milk received and cheese made were as follows: —Mill; received, Warea, 4,707,549 lbs., N'ewall, 1, 780,475 lbs, total or average 6,504,024 lbs.; butter-fat, 183,617.98 lbs., 70,613.02 lbs., 204,231 00 lbs.; average test, 3.90, 3.93, 8.91; butter-fat for cheese (Including Pungarehu milk) 180,170 lbs.,' 71,954 lbs., 252,133 lbs.; cliec:;: made (grade weight delivered at Moturoa), 464,949 lbs., 183,933 lbs., 648,882 lbs.; lbs. mill: to 1 lb. cheese, 9.98, 9.97; lbs. cheese to 1 lb. butter-fat, 2.58, 2.55; official average grade, 89.63, 89.88; whey butter made (total) 7971 lbs; creamery butter made (total) 7052 llis. The amount to the credit of the profit and loss account on closing thq books was £4644 0s 3d. Out of this the directors applied £194 17s 2d for depreciation on buildings and plant, leaving a balance of £4449 3s Id, out of which the directors proposed to pay 5 per cent, interest on fully paid Shares, absorbing £207 9s 2d, and a further payment of 4d per lb. butter-fat over the whole year (£4237 3s 8d), leaving £4 10s 3d to be carried forward. The total payment will be Is lOd per lb. butter-fat In addition to Interest on

J shares. Shortly after the last annual meeting the company lost the' services of Mr. Burgess as chairman, he having disposed of his * farm and left the district, and the directors wish to place on reco-d the company's appreciation of the many years of strenuous work done by him. Steps were being taken to completo the purchase of land required for the manager's residence, and the company will probably be faced with some expenditure in this direction. The company will be required to take up further shares in the Egmont Box Company, the latter company having decided to Increase their capital for acquiring a further valuable area of bush containing white pine. The baalnce-sheet Bhowed that cheese sold and on hand totalled £28,288, and putter £973. The principal items of expenditure were: Fuel £546, salt £243, crates £582, stores £1215, cartage £422, repairs £295, salaries and wages £l42o,extra charges £307 transfer to reserve £l7l, and £19,430 had been paid to suppliers. C pi AIRMAN'S ADDRESS. The chairman stated that he had a big task to follow after Mr. Burgess, and he expressed regret at the resignation from the directorate of Mr. A. Clothier, who, after Mr. Burgess, was the oldest director. It would, he said, have been a far eaßler task to address them if he had been able to show better results. For although the pay out this season was the highest in the history of the company, it was for various reasons not as satisfactory as that of some of the other companies. This was due to three causes, viz., decreasing supply, higher cost of manufacture, and low yield of cheese per lb. of butter-fat. The factory could be worked most economically when at full capacity, and this was not the case at their factories. At the main factory, the supply showed an increase of 300,000 lbs. of milk, but at Newall Boad there was a decrease of 550,000 lbs., the net decrease therefore being 250,000 lbs. There were, however, indications that the supply would materially Increase, as a number of the old suppliers were again milking, and there were also some new ones. Working expenses had increased—fuel by nearly 40 *p«r cent., salt 125 per cent., crates 42 per cent., stores nearly 100 per cent., Balary and wages 40 per cent. The total expenses, Including depreciation, amounted to £5733 as against i £4608, or about 24 per cent, (acreage, ,re- * presenting about Id per lb. butter-fat. As showing how the cost had lnoreased, he • stated that In 1914 the total working expenses were £3494, or equal to 2.56 d, whereas in 1919 they rose to 5.41 d per lb., or nearly double, but against this the pay out was Is id in 1914 and Is lOd in 1919. Touching on the balance-sheet he pointed out that the reserve fund had Increased from- £312 to £739 The assets of the company showed that In 1914 the land, building and plant were valued at £4622 on a paid up capital of £3951, whilst in 1919, the land, buildings, and plant bad been written down to £4285, despite the installation of new pas- -» teurlsers at the factory and branch, and a new residence at the latter, whereas the share B capital liad increased to £4487. -He referred to the large increase in the company's sh&reI holding in the Freezing Works, from £340 in 1914 to £ll9O in 1919. This he considered a good asset. In the Egmont Box Company their holding, had increased by 100 per cent. J during tho past live years, and the fact that the company was acquiring an additional block of land would necessitate Its being again doubled.

, In connection with dried milk and sugar of milk, the company had contributed their quota with other companies to ttfe investigations made in New Zealand, costing about £l, but had decided not to contribute to the expense of the outside Investigations, as they considered that owing to the cost of the plant and the expense of tho fuel required the company would not benefit. Whilst he did not wish to touch on the affairs of other companies, he pointed out that Rahotu'paid out more than Warea because they had a better' yield and mahufactured more whey butter, whilst Patua, whose yield was about the same, had £ISOO less working expenses and made more whey butter. Referring to the make of cheese, he said that this was very low, both at the main factory and at the branch. One tiling that struck him in connection with the matter was tho great variation in the make from year to year. The highest make In any year had been 2,7 under a previous manager, and under the same man the year previous to that It had been 2.52. The following year It was again 2 58. In 1914, under the present manager it was 2.55, rising In 1915 to 2 69. In 191? the yield was 2.58, 1918, 2.55, 1919, 2.55. One point difference In the yield was equal to Id per lb. butter-fat, so that It could be seen that It was a serious matter. , While there was thlß variation in the yield, the test had been very consistent, showing a slight rise. This; suggested that the method of testing for butter-fat only In connection with cheese making was not a sufficiently accurate one, and he considered they should teat occasionally so as to satisfy themselves that the other solids did not vary, or if they did vary they would know it. A weak feature, as It appeared to his mind, was the > decrease in the quantity of whey butter manufactured. This In 1914," was 16,000 lbs. whereas It was only T971 lb*. )n 1919, 'representing Is 5d per lb„ to which the Imperial Government had Increased the price from Is 2d the sum of £560. He confidently looked forward to some improvement is this respect during the coming season. He then formally moved the adoption of the report and balance-sheet. Mr. W. Rumball seconded, and after a short discussion the motion was carried. ELECTION OF DIRECTORS. Tor tho three vacancies caused by the retirement of Messrs. Wells and Muir by rotation, and of Mr. Clothier, who did sot seek re-election owing to his removal from the district, > there were seven nominations, and the ballot resulted as follows: Messrs. C. S. Muir 163, C. Wells 127, G. Julian 100 (elected) ; Caldwell 63, H. Donald 60, H. Corbett 58, Parker 46. Mr. C. T. Mills was re-appointed auditor at a fee of £7 7s. A vote of thanks was aocordod Mr. Clothier for his valuable services during his many years on the directorate. It was resolved that the directors remuneration be increased from ss. to 10s per meeting. A suggestion was wade that the chairman's honorarium should be doubled, but the chairman expressed himself as well satla&ed with the present honorarium. GENERAL. A supplier proposed that interest on share capital be paid at tho rate of one per cent. Mr. J. Lawn seconded. Mr. W. Glbbonß moved, as an amendment, that 4 per cent, interest be paid on all share capital. He considered it was not fair to pay out only ono per cent, to dry shareholders whose money they were using. Mr. Clothier seconded the amendment, which was lost. The voting on the motion was even and the chairman thereupon gave his casting vote against It, remarking that he considered It only right that dry shareholders should get a reasonable rate of interest. A further motion by Mr. H. Corbett, seconded by Mr. R. Hemingway, that the directors be recommended to pay 2% Per cent, was lost. There was also a brief discussion on the question of purchasing shares, a member sugresting that the company shouh) .buy all shares at 12s 6d. The secretary pointed out that according to the Act the company could only purchase up to one-sixth of Us Issued capital. ELECTION OP CHAIRMAN. At a subsequent meeting of directors, Mr. W. Rumball was re-elected chairman. NORMANBY CO-OP. The twenty-fifth annual meeting of the Normanby Co-op. Dairy Factory Co. was held on Friday. Mr C. .1. Preston, chairman of directors, presiding. DIRECTORS' REPORT. The directors reported that after writing off £OIO in depredation, providing for Interest on IhtMUftL M&UBtnttM of n»

luained in the appropriation account an uidivided balance sufficient to pay out to 2s I%J over the whole season. Mr A. .7. Hopcroft had bedn, re-engaged as manager for the ensuing year.

The following were the statistics for the senton: Lb9 of milk received, 11,247,498; lbs o! butter-fat, 431,491; average test, 3.830; number of suppliers, 49; lbs of cheese mode <515 t'CJis 7cwt lqr 14lb), 1,154,42(i; lbs of mlJk to lib cheese, 9.74; lbs of cheese from lib butterfat, 2.675; cost of manufacture, .!)2cl; cost of manufacture (Including depreciation), l.Ood.

In moving the adoption of tho report and bal-ance-sheet the chairman said: The output shows # decrease of, roughly, 15 tons, but when the number of suppliers Is taken Into consideration, there being 49 against 57 for the previous year, and the very backward spring, which resulted in 40 tons less cheese being manufactured up to December 31, the total output must be considered very satisfactory. The cost of manufacture is somewhat higher this season, due largely to the loss of the water wheel for practically the whole of the busiest part of the year. Out of 7000 cases of cheese manufactured, only 29 wer? second-grade. The last of the 1917-18 cheese left Hie stores about the beginning of March, and there still remain in Rtore at June 30 4345 cases of this season'* cheese, nearly two-thirds of the whole output. The balance of the pay-out cannot be made until all cheese is shipped and the refund of storage received from the Government. Last year's pay-out totalled Is 10% d. This year the price is ; >id per lb higher for cheese, and the companies are paying two months' storage as against three months last year. The payout this season of 2s l%d must be regarded as very satisfactory Indeed. We have already paid Is Bd, and cheques are payable to-day after the meeting of a further 2d. The ratio of lib of cheese to lib of bi. er-fat shows an improvement, being 2.67 as against 2.(11 last season, 'making a difference of three-fifths per lib butter-fat. In reply to Mr Gibson, the chairman said it was essential that all rubbers In use in milking machines that had been put away for a month should be thoroughly scalded before being put Into use again. Mr R. Clement moved that this meeting place on record Its appreciation of the excellent work done by Mr Hopcroft and the suppliers who loyally assisted him during the epidemic period. Mr W. J. Laurent seconded, and moved to add that the manager be granted a bonus of twenty guineas. The motion was unonlmously carried. The motion for the adoption of the report and balance-sheet was seconded by Mr Gibson, and carried without further discussion. ELECTION OP DIRECTORS. The two retiring directors, Messrs R. .T. Ballantlne and G. W. Gane, wero nominated for reelection. In addition Messrs G. H. Mills and W. Madgwlck were also nominated. A poll resulted as follows. G. W. Gane 3203, R. J. Ballantlno 2053, G. H. Mills 1087, and IV. Madgwlck 611. Messrs Gaue and Ballantlne were duly declared elected. A MANAGER APPRECIATED. Mr Laurent remarked that their manager had a good deal of running about to do on the company's business, generally in a horse and gig, and he suggested <Jiat the company purchase a small ear for his use. The manager would have the uso of it for Ills own pleasure when he wished, and for this he would maintain it and find benzine. In Mr Hopcroft they had one of the best factory managers in Taranaki, and they should show their appreciation of his excellent services. The chairman endorsed these remarks, and added that Mr Hopcroft had saved the company many hundreds of pounds In the one Item of buying requisites, and it was very largely due to his very capable management that the company had such a good pay-out. The suggestion was unanimously adopted by the meeting, and the directors were authorised to spend up to £ 350 on the purchase of a car. GENERAL. The perennial troubles over whey were again ventilated, and numerous suggestions made to ensure each supplier receiving his quota, but none of them offered m completo solution of tho j trouble. Finally it was resolved to leave tho | matter In the hands of the directors and manager to make the best arrangements possible. The chairman moved that the company form a herd-testing association, and pointed out that with the present hlgh-priccd land dairy farmers must adopt the most up-to-date and scientific methods possible in their business. He mentioned that one man, Mr Bennett, of Ivaupokonui, had reached an average of 3731b of fat per cow, and there was no reason why others could not do the samo, and even an average of 3001b was not enough. After a brief discussion the motion was carried with the addition of the words "in conjunction with other companies." Mr H. A. Lcnnon was re-olectcd auditor at & remuneration of £lO 10s, It was resolved that interest at the rate of 4 per cent per annum be paid ou share capital as usual. The chairman's honorarium was increased from. £SO to £lO2. Appreciative reference was made to the splcn- | did work performed by Mrs Hopcroft during the epidemic in nursing those of the staff who went down. The directors were authorised to spend Up lo ten guineas in making her a presentation conveying the company's appreciation of her good work—Star.