DAIRY COMPANIES.

Taranaki Daily News, 15 August 1919, Page 8

DAIRY COMPANIES.

' ' -' ■ ■»■ MAKETAWA. ANNUM; MEETING. Tin twenty-fourth annual meeting of tlio Maketawa Dairy Company was held' at the Maketnwa factory yesterday, when Mr. .7. Brown, chairman of directors, presided over a Cood attendance of shareholders. REPORT AND ISALANCE-SnEET. The report showed Hint the quantity r.t butter made was 117 tons 15 cwt. 1 qr. 23 lbs. The sum of £233, being y t d per lb. of butterfat, had been placed to the reserve account towards paying for the last fill shares- taken up In the Tarannkl Producers' Freezing Works Company. The surplus amounted to £2323 ]4s Id, which would allow of n further payment to factory suppliers of 2.5 d per lb. and to creamery suppliers of 2.4 d per lb, which would bring the total payments for the season u;i to Is 6Vid per lb. of butter-fat. Suppliers for casein had already received 2d per lb. of butter-fat, and a further 4-5 d is now due to them. The directors had appointed Mr. I*. P. Robinson to the position of manager. The following statistics were submitted:—lbs. of milk received 5/13",314, lbs. of cream received 17,707, lbs. of hutter-fat 223.682, lbs. of butter made 203,811, butter to lib. butlerfat 1179, average test, milk 4.22, average test, oream 37.2. t Tile balance-sheet showed receipts £21,429, the prlncin I items being butter sold, etc, £20,012, casein £1369, butter-milk £45. The principal items of expenditure were: Wages £713, fuel £ll7, requisites £583, insurance £127, selling and administration £Bft, depreciation £172. The sum of £ 11,1112 had been paid out to suppliers. The casein expenditure totalled £ll3, and £1225 had been paid to suppliers. There was £212» In hand. CHAIRMAN'S SPEECH. In moving the adoption of the report and balance-sheet, the chairman said thero had been a falling oil in the output of 14 tons. This was accounted for partly by (lie bad season, and the influenza epidemic, and partly by the fact that a good deal of swapping of lanil was going on. This was not good for production, as he was afraid that the majority of cases were speculative. Next season he hoped would be a good one, and see the production up to the old mark of 145 to 150 tons. That could be reached easily if the present suppliers would do their best to Increase production. There was a probability of fresh suppliers. It was rather a coincidence that the overrun was exactly the samo as the pre7ioiis* season, and tlint tho test was practically the same. Tho buildings at the factory stood on the books at £328, which the directors considered was bedrock, and It was doubtful whether it would»4>e a good policy to write them down further. TIB plant was standing at £749, i separator having been sold The buildings and creameries stood at £025, but a new cottage, costing OTer £4OO, had been added. Regarding expenditure, the fuel at the factory allowed an increase of £42, and at the creamery £l7. The large Increase in requisites could be accounted for In boxes alone, which had increased from Is 3Vid to is lid. He was happy to sdy that on account of judicious buy[fre; the company had bought stocks ahead, and though thero had teen an incrca-o of prices, the company had not suffered. He liopod they would get a rebate on boxes and crates next year. The cost of production this year showed an increase, being, with last year's figures lu parentheses: Per lb. of butler-fat to f.o.h 2.71 d (2.34(1) ; per lb. of butter, 232 d (1.97 d), or with Interest and depreciation added, -peV lb of butter fob. 2 Slid (2.50 d) ; per lb. of butter, ZM4 (2.li!d). The fuel consumed at the factory and creamery averaged 55a Od per ton of tlio output, as compared wi'th 23s lOd hi 1009, when there was an agitation to Instill the electric power. ¥ct, despite this, people got tip In the towns and laid that it cost the farmer no more to produce to-flay than was tile case before the war. Regarding the prospects for Hie coming season, he said that all knew that the butter had been sold for another year to tho Imperial Authorities, and what was going to happen after that, he was not prepared to prophesy. He then explained the shipping question Ho pointed out that though the directors had spent £50,000 or £6'O,QOO in additions at Jifoturoa, and had put £23,000 jn the Smart liond freezing works, the overdraft was not 'Bore than £OOOO. Ho considered this latter w'Ss »a 8W>(! business proposition, not only for the* MoturOß work?, but also for the Smart Road workS, as the dividend on the £25,000 more than paid the interest on t|)fir overdraft. The fact that the storage was necessary was evidenced by them storing 20,000 crates of cheese there as well as butter. The Idea of tho extra storage was, of course, to tide then) over the war, but he •aaid' It would also be useful in case of n Shipping strike or labor difficult?. It had been Bald that after the war the RctdjttQns. erected at Moturoa would bo a white elephant, but they had already had inquiries for storage accommodation, and with the prospects of harbor development all available accommoxUtion near tiie po»t would soon "be grabbed tip." In fact, lie considered t!>At In t few years the biggest part of Tapanakl'i production of bntter and cheese, would go over the New Plymouth wharf. He touehed at some length on the Box Comi pany's affairs, and said if the deal now In hand came off they would have white pine sufficient to last twenty years. He justified the existence of the Bos Company, and said that even if their timber was worked out and they had to import timber, they would need tin Box Company's plant w manufacture the boxes unless they wished to allow private concern? to do to. Ho had been a director for 24 years, and chairman for three years, and all the local bodies he had been connected with, he had taken most interest In the factory, which had been started somewhat in the nature of ait experiment. were not .millionaires then, and of the 16 who signed tho joint and several not more than five or six were worth the paper they were writton on. The first year their output was worth £3987. ne was pleased to say that they had now got a splendid business. Outside companies had been willing and eager to Incorporate their company, but ho had always been against amalgamation. and thought they should keep their own business together. He recognised that they could work more economically if working up to the full capacity, ae 150 tons could be turned out as easily as 117 tons, and with little ex'ra cost. They had, he said, got a new manager, and were going to have a new, chairman, and he urged the suppliers to give all the assistance possible by supplying good materia!, and then they could expect a good article. Fortunately, j Maketawa had very littlo second grade to contend with, but ho did not see why they should even liavo a little. He urged suppliers not to expect the pasteuriser to do too much Ho was still a shareholder, and did not intend to resign from the directorate, as he was willing to place Ills 23 years' past experience as chairman at the services of the new chairman, and was willing to do whatever he could for the factory. Mr. ,1. D. bombroski seconded the motion, which was carried. ELECTION OF DIRECTORS. Messrs. E.' A. Laurence, C. Coble, and ,T. T. Stephens, the retiring directors, were reelected unopposed. Mr. Geo. Pullen was elected auditor at a fee of £7 7s. AN APPRECIATION. SI?. Camiln proposed a hearty vote of thanks to the chairman for his stvlcos during the past 23 years, and expressed the appreciation of the suppliers at his action in remaining on the directorate.. He also moved that Mr Brown be, voted the usual honorarium. Mr. Marshall, in seconiline, stated that Mr Brown had never spared himself in the interests of tho factory, often neglecting his ewn business. Tlio company was to be congratulated that Mr. Brown had agreed to continue on the directorate to assist (lie now chairman. _ Mr. F.rown, In returning thanks, said that one nsv.er knew until he got into public life what a hip scoundrel be was. He urged (hem all to give the new chairman a fair chance and not to kU'k him too much until ills hide had a chance M get toughened. He thanked them for the expressions of thanks, and rcmavkvfi tint he had spent the happiest time of,his life/and also the hardest hi connection with the fa«u;r.v. EQUALISATION FUND. The chairman, in concluding, said Hint tinpayments made »,irc not final as the Equalisation Fund had yet to lie adjusted, and It was difficult to say when iho Government woukl lU)ve Its returns available.. The (lovernmenl . appeared 10 he "snowed tinder" in euiuection with the matter. He asked all suppliers to sijm Oie petition, wtiiul) would lie placed before Parliament otr the Hoot of the House if Cabinet did not give redress. ' ELECTION OF OHAIBMAJf. At a subsequent meeting of director, Mr. J. ' Drown was re-elected chairman, and Mr. ,i. II Stephens depf-ty-elialnnan. MANGOftEI, ! ANNUAL MEETING. | Tiie annual meelliij fit the Mangnrci Cooperative Dairy Company K'?s held at Egmont Village yesterday, iji.o nhaii'iiian 0 f directors (Mr. A. Morton), presiding over a I large attendance. DIRECTORS' REPORT. J The roport of tho directors stated that dur- >** the year £42,332 5s Id had been paid t# |

suppliers, being equal to 17.18U per lb. of butter-fat. A further payment of Id per 11). on all butter-fat. supplied between September 1, 1918, and April 1111, 1019, had been authorised by tlio. directors, and £7Ol -Is, 7d wag rei'ommended to be written off lor depreciation. The final payment lor the season could not be made until it.was ascertained what amount the company had yet to receive from the Equalisation Fund. The following statistics were given, the figures in parentheses being thoso for the previous season :-—Milk received U,84fi,5G9 lbs. (12,739,027 lbs) ; butter-fat contents ,438,770 lbs. (505,597 lbs.), average test of milk 3.99 per cent. (1197 per cent)'-, cream received 3a3,t)(57 His. (311,784 lbs) ; butter-fat contents 132,547 lbs. (118,884 lbs.) ; average test of cream 37.4 per cent. (.18.13 per cent); butter made 095,145 lbs. (730,125 lbs) ; over-run 17.51 per cent. (17.88 ppr cent.); lbs. of milk to each lb. of butter 21.01 lbs. (21.54 lbs).

CHAIRMAN'S ADDRESS. In moving the adoption of the report and balance-sheet, tho chairman said the decrease In tho milk supply was to be regretted, and he referred to the adverse conditions affecting the season, including the epidemic. The shortage of labor, which had prevailed during the past five years had also been a factor in the decreased supply of milk. There was. also tho preference of suppliers for supplying cream rather than whole milk, and that affected the supply return. One most important aspect of the whole question was tho fact that the output of the dairy companies had been purchased by the Imperial Government, though on somewhat different terms from the previous purchase. It had been made for two years, which meant that this coming season's output was the property of the Imperial Government, the commandeer continuing up till the end of next .luno.

Air. Morton then dealt with the Iniquity of the equalisation fund, which is reported elsewhere. The balance-sheet showed the company was in a very satisfactory position, and in time, when tho supply again Increased, as they had reason to hope It would, the shareholders would reap tho additional benefit (t was unfortunate that the directors were unable to make a final payment for the last season and the season before. The payments to bo made this month would still leave it final payment for the past two seasons to be made. The equalisation fund was still In existence, and had not yet been wound up but It was hoped tho Department would soon be in a. position to say what amount shouia be paid to tho dairy companies. A considerable sum had been written off for depreciation The reason was that during the year ono creamery had been rebuilt and considerable repairs effected to the central factory This the directors thought a wise policy in order that the assets might not appear unduly in-

Tlie company last year paid £1155 to the Freezing Company, and this year Its share was represented by £2095. A portion of thla had not been paid In cash by the company, but by a division of the profits of the Freezing Company Itself. The company's share of that profit had been £450. The Freezing Company s profits hart been fairly KO od and it was likely an even higher rebate would ba recommended than for the previous Tear The Freezing Company had paid to tho Meat Coinpuny *- 25.000 .and the Freezing Company had received £7OOO in interest, etc. The success of the Meat Company was now assured, and tho dairy company shareholders could look for a return higher than the cost h.rl been to thorn, and to other benefits In addition to the increased storage accommodation ■ln referring to the shipment of bmter, which had been very good, the chairman said there had been no long delays in getting stock away. That was ope of tho pec ill"? features of the Imperial purchase. When negotiations were in progress for the disposal of the butter output, the producers were impressed with the fact that the British Coreminent did not want buttor, but cheese, and in the end they were practically forced to accept a lower price than they nskod. It was therefore surprising to find that, after being forced to sel at a lower figure, butter was being shipped .more expeditiously than cheese and in some cases it had not 'remained more' than two weeks in cool store. There were still large supplies of last season's ohoeso tn store It-, certainly showed thero were vcr« good prospects for the butter Industry There was a good demand for it, and people were prepared to pay. When they could go on ho free market again it was practically certain they would get better prices than at present The thing for them to do, therefore, until that time was to see that the supply was fully maintained. wwy

Mi. Morton then referred to tho prospects for tho .nauiifnctiiro of oasebi, and expressed : saturation that a special meeting of the shareholders had agreed to Join In a Cooperative Casein Company. lie stated that nothing further had been done sin™ a decision was mado. He thought, of the companies that had decided to go in for it thev * the ™ l *' c ™«™ not actually making f Win. That was due to the fart, that the directors were acting cautiously. Those who were making casein did not know yet ho'v they were going to disposo of their product, and ho did not think they would get its fuli value Up bolievpd the time was not far distant when North Taranaki would have Its' own co-operative casein factory, and all tho dairy companies would be suppliers The delay in its formation was not duo to the Mangorel directors, but the directors of other companies had to be satisfied If they were a 1 of tho same opinion as the Mangorel direotors, tho factory would be within sight now. Ho counselled the shareholders, how. ever, fit ba mutant for anofhep twelve months and assured them that the factory would be established in the next season, and thoy would got full value for the by-product of tho Industry. Ho concluded by formally moving the adoption of the report and halanco-sheet }lf. f. Muudt seconded the motion.

SHB DISCUSSION. Mr. Shute drew attention to the heavy cost of running the creameries, and said it was not fair that the home separators should have to bear a share of the cost of running the creameries for those who wanted them. He t!)Oiigbt the company was losing by keeping the creameries «oing. He estimated alsi that the running to creameries represented 75 per cent of the traffic on tho by-roads, and that if they wero cut out the traffic would be reduced by 50 per cent. Mr. Goodrich asked what would bo done In the event of gpjng in for casein, Mr. Shute replied tha( it would be wise to wait and see, for a good while yet Mr. Pearco urged suppliers to stand together. Be could not understand people going out of the co-operative company and supplying outsiders. Mr. Corney said ho could not see how it was possible for the outside companies to colloot tho eri>am from round the district, and dispose of. their product at a sallsfactory profit as they all had to bo on tho same market' with their butter. The chairman expressed surpriso that some farmers had supplied to the outside competitors. Ho believed In keeping the creameries open. If there were no prospects, it might bo wise to get all the suppliers to ro in for home separating: but he thnncht they should look ahead for •something brighter and better. Mr. Knauf asked If It was a fact tho directors had sold butter to the Maoriland ComDany at Is 5d per lb. The chairman: The next ttine vou hear Hjnt you can say Its—an untruth I Some four years ago they sold some butter to the Maoriland Company, but for reasons which he'stftcd they derided to cease dealings with them Another shareholder asked if it was true thev made £OOO out of the butter bought , ' Mr. Morton said lie did not know what they did with the butter. They sold them £ISOO worth of butter, so if they made that mtirh profit Ihey must have got about 3s per lb. Mr. Knauf referred to the small return (£2O) for the sale of buttermilk, and thought considering the price of bacon, It should" be neirer £2OO. Mr. Morion said they sold in the open market, and the figure shown was what they had received. Mr. Goodrich remarked that In the event of making casein Ihey would want all the buttermilk, an be understood tho buttermilk contained move casein than skim milk. A question was asked as to whv repairs had not been effected to (lio Mangorel creamery and the chairman tenlioil that' the directors had received no request for repairs It was the. policy of Hie directors to keep their buildings and plant in a thorough, state of effloleni'y, am! If repairs wero necessary ihey ivonld be effected. '

The report and balance-sheet wore then Adopted. ELECTION OF DIRECTORS. The eleetlnu of directors, to fill vacancies mused by the retirement of Messrs W (i Rhocinnrli. A. 11, Taylor, and 0. A Cniir.n rciultod in the return of Messrs. Sliocmark,' Taylor, and R Ilnrrows. On the motion of ihe chairman, seonndp' »y ill'. J. 1) Rowlands, a neawv vov or thanks was accorded to Messrs. .1' Hmilnhiiu snd 0. A. Cnvncy for their servic»s tin the directorate. Mr. A. .1. Tuul'i'idgc was re-elected audHoat the usual fee. ALLOTMENT OF SHARKS, Mr. Goodrich »«vu nonce, to move at ih» next annua! meeting that tiie Articles of Association be altered to provide for tlio basis a allotment of shares being iil| e! . o d f or |' ho monthly to tlu ?.n)\\\i\] supply of hutier-fal. GENERAL. A discussion then took place, on the quality of a supply of sing, which the directors had- offered to the suppliers, It being sug. Bested that as no analysis of the slag had been given, in consequent suppliers, m mil know what they were buying. The chairman pointed out that the directors Relieved tl)ey l»sd' * very gpod line tp offer,

I and it was warranted to cnntnln not leas than 10 to 12 por tout, phosphorlnc acid. No analysis could be given till delivery was received, but there was the protection of the Government analysis, and the demand' that the manure must come up to the warranty. Votes of thanks to. the directors and the staff for their services during the joar concluded the meeting. ' RIVEROALE. The twenty-fifth annual meeting tit the itlverdale Co-operative Dairy \Factory Co Ltd, was held on Monday. There were'about 3o present, and Mr J. §. McKay, chairman of directors, presided. The annual report stated:—The output shows n considerable increase over the previous season, owing to a much better milking season having been experienced, the very severe drought experienced in many parts of the Dominion being only very slightly felt in this district. After allowing depreciation *.»? <m blllMln e a . £275 on plant, and , °". „ ncw factor y. tlierc remains a su ,7»» a of ? 12,007 12s Bd. To this must be added a balance of £195 12s 9d from the »™'™ mill;1 "K s« : ' s »". making a total cf &™ «. "' d „, nvnilaWo f( * distribution. From this your directors recommend a divided of o per cent, on paid-up capital of I the company, and a further- payment ot 4%d per lb. butter-fat supplied during the season, bringing Iho total payments up to 24% d, and to carry the balance forward. The store has again had a successful season. After payment of £2lO as interest on the capital used In the business and all working expensus thwo remains a surplus of £747 10s Id. From this your directors recommend a relate of l> per cent, on store purchases on the, usual conditions, and to carry tho balance to the store reserve account, The following statistics were attached to the report, last >Ws figures being shown In (15,4251.21), Increase 1,722,5381b 5 ; total lbs ft?»; ilt '. 6? " m, im ' m ' am lbs; lbs cheese made 1,732,45 a <1,47Q,R1»> i n . ' U,s cre » b,l »«>- made.ls"- , 932 (2DV.It,), decrease 12041b5; lbs whey butter made, 35,690 (25,928), Increase MMlta- , Ihs che w per lb butter-fat, 2.71 (8 50) in , M .15Ibs; lbs milk per lib eheese 989 10 1 , decrease .211bs; ave W o test, 3.7,9 . U 82), decrease .05; average payments i,Z season, 24% d (21%), S'jd lor The chairman, in waving the adoption *> tho report and halAiico-sheet, said the. W 7r pensea we very heavy, and Itow - £Ji„„,i -I doubt would have to pay its/woport on of g«j 2R„S rco=o n n dn wltn price to be paid for cheese was""id the same as Ut ycar . M ? t ;Jf' w ™ ■ 0836 crates n store as acainit Jnsn i.V. . • Shipping facilities nad" nof&Tu, I<S last sear, but they nil hoped there would be an Improvement In the near future He mo! S" r °^, , ° " le "Potions of the Box Company « IIU tho Re Company. Also to 'SuVw "S °l h ir m T [ ™ ,0 Amerlcfand 0 S th« tn If 1 W ° UM . So ° iy th 6 m <"*°- » %d' The viT; 0 !" fW " ,e Seaa °n «»» 1, i , >lcl(i llod been exceptionally rood and also the test. The cost of Ta3ac7ure wtl, b mo,t otler l " 6 "' • Ind thlS «•£«££ not likely to come down for a few years ELr s " ri1 1" ,h 0 «** B °™ of the star": holders no doubt expected to see a return lr. r<l , ,"' ;i " " m Mn( " h j« « the time or fltqek-tak n B , stocks that were supposed to he depreciating were written down ower than sual, hut it was afterward., aseerEd that thc»c stocks had not depreciated, for t'h. „i .. Sl,owtfon ponded the motion sheet ftc "!!! ° r I", 0 ropOT ' ft "« b »'»« «• siieet, wheh waj carried without discussion a Hi™ iSr«" s «.— manager n , r.",, f >\ w " 9 <lis ™ ! >9ed. The Mr. haowden moved thai the company rilq continue ,ho supply „f hot'water -twiod The two retiring directors, Veaen t w Snowdcn and ].; \ \v„»i„,V •. Icssra •"■ «. without opposition ' wero rc - el^'ed •US *"ne£. , """ 1 "" W ««««« ] M<?L* See! "'•"•"""on of Mr. ensitag j-e«r_wi. 0 eU ' ir ' U " n f ° r ,llc '