DAIRY COMPANIES.

Taranaki Daily News, 22 August 1919, Page 7

DAIRY COMPANIES.

BELL BLOCK DAIRY COMPANY. - JTWBNTY tfHIRD ANNUAL MEETING. the annual meeting of the Bell Block Dairy Co. was held In the Bell Block Hall on Wednesday evenjnir, when Mr .1, S. Connett, chairman of directors, presided over an attendance of about 70 shareholders. REPORT AND BALANCE-SHEET. The report stated that the milk and butter fat quantities showed a considerable Increase on lam year's figures. They were: Bell Block, 3,500,97.1 lbs milk, 374,053 lbs butter fat, 43T average test, Hillsborough, 3,540,280 lbs milk, 152.344 lbs butter fat, 4.3 average test, the totals being: 12,101,259 lbs milk, 520 39T lbs butter fat, 4.35 average tent, cheese at 801 l Block and 9.23 at Hillsborough; Hillsborough 313,000 lbs, a total of 5117 tons It took 8.35 lbs of milk to make a lb of cheese at Bell Block a nd 9.23 at Hillsborough average 9 3

At 801 l Block the yield was 2.42 lbs cheese from a pound of milk, and at Hillsborough 2.52, the average being 2.46. After writing off £320 17s for depreciation, the profit and loss account showed a credit of £10,150 13s 6d. The directors recommended the payment of the usual dividend of si* per cent on capital, absorbing £l9l 17s, and a further payment of ■Ufcd per'lb of butter fat supplied, making the total pay-out Is 10Hd per lb of butter fat, and six pet cent dividend, which equalled an averago payment of Is 111 2-sd. Shareholders were risked to note that the test was rising each year, and the average fof the past year was- 4 35 per cent, a very, high test for cheese-making, and sup"pllors should take this into consideration when Comparing prices per pound of butter fat paid but. . The following statistics were given, with those of last y*tr In parentheses for comparison: Number d' suppliers 85 (85), milk received 12,101,2591b8 (11,804,048ib5), average test 4.35 per cent. (4.27), butter-fat 526,3971bs (505,019 lbs), average price paid suppliers 22 2-5 d (21 33d): cheese made 1,298,0001bs (1,250,500 ilis). lbs milk per pound cheese 9.3 (9.43), (bs cheese per pound butter-fat 2.40 (2.5), average grade, Bell Block 96.37 (90.30), Hillsborough 91.96 (91.56). The balance-sheet allowed that milk Bales had totalled £55,659 lis lid, and butter sales £2857 12s .3d, the total recetptß being £58,650 6s. lid. The principal Items of expenditure were: Salaries and wanes £2219, interest and insurance £454, freezing and port charges £655, cases and boxes £lO6l, cartage £223, fuel £628, repairs and renewals £347, factory requisites £2B24,,trade expenses £209. ex'penses df dried milk £66, depreciation £320. The sum of £39,486 had been advanced to milk suppliers, and there was- still a balance of £10,150. CHAIRMAN'S ADDRESS. ' The chairman stated that before reviewing the, affairs of the company he would like to refer to some of the Important happenings during the year as regarded the dairying Industry. When they met last year the cool Btores at Moljiroa contained 70,000 crates of cheese, and the position ahead looked very serious: Indeed, they had gone So far as to arrange: for the erection of additional storage, and BSH Block factory had set aside £IOOO as their share towards Its cost. Since then the building m Smart road, to which the dairy companies had contributed £23.411(1, had been erected niid ',— cupletl, and additions had also been erected at Mbturon, to accommodate 19,000 cratrn of cheese. At Smart Road the accommodation was for 100,000 boxSs of butter, or its equivalent in cheese. That their Ideas were right were borne out by the fact that at one time they had 20.0 M crates of cheese and 20,000 boxes of butter In store at Smart road. At the maximum they held In Store at one time 87.0H0 crates of cheese and 40,000 boxes of butter, and as the result of their forelhought in providing the storage were able to hold this without any loss In November the war came to an end, and he was pleased to know that the Dominion troops had been rapidly demobilised and that almost all had already returned and were taking up their duties again. He was pleased to have them back again, as they were required, and others too, owing to the paucity of labor, which at present was acute and would take some time to get back to normal. Bell Block, In common with other districts, had suffered from the epidemic, but perhaps not as severely as other districts, as ewtng to tbelr proximity to New Plymouth, they were able to get'medical assistance. Labor at the factory was disorganised, but hot to such an extent as some factories. Indeed they were able to lend a cheese maker to Tarlkl, and also gave assistance to Tarurutangl,

About the same time also they had definite word of the sale- of their produce to the Imperial Government for two years at l»%d on somewhat -similar lines to last year, save that the Government paid storage after two months instead ef three months. He touched on the enquiries made In New Zealand by the committee (of which he was o member) that had been set up to Investigate the position regardihg dried milk. They bad visited the Walkato and Interviewed the delegates of those companies that had visited Ajneflca, and ha* aloe sent deletatcs to the gouth Island U enquire Into the sugar of milk. They failed, to make satisfactory arrangements with the Walkato people, who had secured fights In America, and so considered It desirable to send delegates abroad, with the result that Messrs Murdoch and Forsyth had cone to Investigate Into the possibilities Of dried milk, sugar of milk, condensed milk, and d'her products of milk In America, and, If necessary, nroceed to England and Denmark to get the fullest Information available. While in England they weuld look Into the question of marketing the produce on the English market after the sale to the Imperial Government had come to an end. For some time a desire had been expressed that the dairy companies should endeavor to market their own produce and as they had been dealing direct with the Imperial Government they felt that now was an opportune time to break into a marketing scheme of their own, rather than revert back te the* system of agents who handled their produce hitherto. I

Mother matter of importance was the proposal of the Egmont Box Co. to secure a large area of bush for the manufacture of cheese crates and butter boxes. It was only n matter of six or eight years when, the Box Company'' present supply would be cut out. Front time to time the Box Company, of which he was a director, was securing any Small areas that were available, but the present timber for which they were negotiating comprised .10,000,000 feet of white pine, and it was adi vantapously situated, being close to their mills. If the negotiations were completed liicy mould have sufficient white pine to last many years, and, In adldtion, thete was 54,000,0«0 feet of other timber, which would be marketed, and So enable them to get their boxes and crates cheaper. He congratulated the district on carrying the harbor loan, which he considered a great event In the history of Taranaki and to each and all in the province. He looked forward to the time when the Home liners would trado to the pott for dairy produce as well as meat. The contract betweeb the National Dairy Association and the shipping companies, which had oeeti in existence during the past five years, was expiring during the coming year. It was possible that no effort would be made to renew it during the period that the Government was taking their produce. It was not, he said, in their Interests that It should be They wanted to see the boats come here, but wanted to do a lltlte more work at the harbor first In order to satisfy the shipping companies. The fact, that tr*at boats had been- here and had had a good run, all helped. Once the direct shipping was an accomplished fact, Taranaki would be more prosperous than ever. Another event, too, that showed the desire to keep abreast of the times was the carrying of the tar-sealing loan. THE COMPANY'S AFFAIRS. Dealing with the report and balance-sheet, he said that the increased milk supply was a very gratifying feature. This was partly due to the fact that the rains had suited the coastal district, with the result that the output had Increased by 29 tons. They had also been helped by the fact that lliere had net been many changes among the suppliers, and they had not therefore suffered, as some districts had. by dairy farms being sold and turned to grazing. He was glad to know that all the farms were going to continue dairying, became the greater the supply the more economically the cheese could be manufactured. The test had Increased, showing that farmers were taking an interest In selecting their cows , After reletting to the cheese content of the butter-fat, he petnted out that the assets had Increased considerably. It was expected that the new concrete house for the manager would have cost £IOOO, but It had cost 612E9. There was ho doubt a new factory was required, but the present was not an opportune time to build, as they did not Know What developments would occur when the delegates returned fram America. The shares In! the Taranaki Producers' Freezing Works had In-1 i creased from £775 to £1935, but this he bold was Justified by results, as they now had ample storage for ten months. It was not likely that the dairy companies would need lo occupy the whole of It again, but the meat company had their stores practically full to the doors. At present there was only 42,000 crates In store, and they had notification that 30,01)0 crates would be shlppod In September, ao that they would' start with practically clear floors. If the Bgmont Box Co/s scheme went through, the Bell Bleck Co., In common with other | companies, would have to double its share holding, but the Box Company only proposed i to call un half the amount.

He then traversed the balano«-«heet. pointing out that the cartage hud decreased oenildernWy nvflnc ib the company having done so much oilttlde carting. Requlnltei had Inrr*»ueii cfinildMalilv. oning to the Increased

supply, and also because the company having doubled the price of the veils were Inundated with them, receiving over 6000 veils, 600 coming from suppliers and the balance from outside factories. Owing to the labor troubles and tho epidemic the manager had not been able to give tho requisite attention, and they had not got the same results as the previous year. They intended to reduce the prn* tms year to 2s 6d. ' Mr Cornwall asked whether the rennet was as good as imported, and, receiving a /»ply in the negative, remarked that this might possibly account for the poor yield. The chairman stated that the yield was not affected. It only affected tho amount of rennet necessary to regulate the suppliers' curd. Continuing, the chairman referred to the loss of the manager at Hillsborough, the cheese-maker at Bell Block and the lorry drivers.

Some discussion took place over tho lorry charges, shareholders stating that other firms were carting cheaper than tho Bell Block Co. did to its own shareholders. The chairman stated that there had been a number of changes in both tho Bell Block and Hillsborough district, where several suppliers had sold out, but in the majority of cases their successors would be supplying. Referring to the prospects of the coming year, he said It was difficult to State what the position would be at the conclusion of the contract with the Imperial Government. Ho did not know what difficulties lay ahead regarding marketing, but they would know more about this when the delegates came back from America, and they would also hare the benefit of knowing the best course to pursue in order to make the best out of tho land. The Government contract would run out in Juno 1920, after which they would be on their o-.vn resources again as regards the disposal of their produce. Testing had been held Up during the War, though a few enthusiasts had carried it on. Now that the war was over ho hoped they would endeavor to get Increased returns from their farms by the use of manure, which, during the war, had been very expensive. When it became cheaper ho hoped it would be more freely used. He pointed out that some small holdings In the district had returned as much us 100 lbs of per acre. Of course, a let did not produce that amount, but while they did not claim that their land was as good as South Taranakl tho returns showed what could be done by the enthusiastic man who made a specialty of testing his herd and feeding and taking care of them, and fanning on small areas. It Was on small areas that these returns were obtained.

In concluding, he asked all to sign tho petition which was to bo presented to Parliament asking that the difference Iti the price between local and export butter should be made up out of the consolidated fund. He then formally moved the adoption of the report" and balanceshet. Mr H. C. Sampson seconded. THE DISCUSSION. . Mr. Polettl asked whether It wmild not have been possible tc have built the manager's house a few hundred pounds cheaper. The chairman did not think so The house had been thoroughly -and honestly built. The directors thought Jt was good business to go in for concrete iiistead of wood. They hdd been complimented on the house, which, was a good, sound investment, and any further building should be done on similar lines. As one shareholder pointed out, the house made the factory look disreputable. Mr Polettl maintained th"t tenders should have been called, and thus have saved £250.

The chairman defended the principle of building tho house on a 10 per cent, basis under tho conditions prevailing. Mr Ogle stated that Bell Block appeared to keep more men in the winter than other factories and yet did hot separate their whey. He considered the winter was the most profitable time to Separate whey. The chairman stated it was now the policy of factories to keep as many men as possible It was questionable whether the directors would not have to consider reverting to tho manufacture of butter during tho winter months. In a normal season they would not hesitate but there wsb now such a difference between butter and cheese that factories kept at manufacturing cheese ns long as possible.

The manager stated that ho had not sop' arated the whey v.-hen the supply was low, owing to the cost of fuel, etc.

Mr Laurent held that it would not pay to revert to butter in the winter.

air Smith asked whether the company considered It a fair thing to charge a premium of 10s on shares when It was admitted that the factory was dilapidated. The chairman painted out that the cheese factory had .been paid fur In two years by the present suppliers. If n premium had not hem placed on shares It would have been necessury to have altered tho basis of share capital, thus tho position to new suppliers would have been as broad as It was long. Mr Ogle aslted whether the directors had Interviewed the Borough Council re tho Installation of electric power at the factory. Tho chairman stated that they recognised the benefit of electric power and had approached the Borough Council, who stated that their enlarged scheme would not be available for two years. After a little further discussion tl>e motion was carried. ELECTION OF DIRECTORS. For the two vacancies caused by the retirement by rotation of Messrs A. Marsh and C. Hojkln, air A. Marsh wbb re-elected unopposed to represent Hillsborough, and Messrs C Hoskln and A. W. Oglo were nominated for the other vacancy. The election resulted: A. W. Ogle 222 (elected), C. Hoskln 123. For the two vacancies caused by the retirement of Messrs C. Colson and A. H. Street, who had given up dairying, there were three nominations, and the election resulted: F. Cornwall 237, H. flalwny 231) (elected), F. French 120. Mr C. Hoskln declined nomination. Mr A J. Tunbrldge was re-elected auditor; A vote of thanks was accorded the retiring directors. The directors were also voted the same honorarium. GENERAL. It was resolved to have a soparate account of the working of the motor lorry placed In future balance-sheets. A hearty voto of thanks was accorded the staff.

MANGATOKI. ANNUAL MEETING. Tho annual meeting of tlin Mnngatokl Cooperative Dairy Company was Mi in the Public Rail on Wednesday. There was a iuise attendance of shareholders, and Mr.- .1. Marx, chairman of directors, presided. Tho nineteenth anual report and balance-sheet stated that the total quantity of milk received was 23,084,368 lbs, yielding 885,778.53 lbs. of butter-fat, average test 3 83. Milk used for cheese, 21.057,830 lbs.; butter-fat used for cheese, 807,022 lbs ; milk used for butter, 2,089,533 lbs,,- butter-fat used for butter, 78,750 lbs ; cheese made, (100 tons S ewi 3 ore. 11 lbs j cheese yield, 2 08 lbs. cheese to pound butter-fat. Whey butter mado 19 lons 12 cwt.; creamery butter made, 40 tons IS cwt.; total hutter made, 00 tons 5 cwt.; ovoi-run butter, 10 7; 22 lbs of milk to lb. butler. After wrltne. off £2500 for depreciation, there remained £10,771 12s 7d. The directors recommended the payment of a dividend of 5 per cent, on paid-up capital, amounting to £OB7 14s, leaving £10.083 18s 7(1 to be paid out after stocks have been realised and payment received for Government storage, total payment for the year will be over la lid per lb. for butter-fat. The quality of both butter and cheese reflected credit on tho staff, being among the best going through Patea. The percentage of butter and cheese manufnetured from butter-fat was well above the average. In moving the adoption of the report and balance-sheet, the chairman stated that they were clear and self-csphnatory. The season bad heen good for butter and cheese both in regard to quantity and quality. In all Important aspects the company differed very little from the largest companies doing business In Tarnnakl. Ho pointed out that the cost of manufacture was very high just now and that they had heon 3erlously handicapped during the year In other respects. They bad changed managers, and the secretary had been laid up for half the year, and owing to his Inability to attend to his duties, as a result of an accident, he had teen obliged to resign. Ho dwelt upon the frequent changes In tho ownership of land, which lie saia was not In the Interests of the company. There were a number of people who took up dairy farming and acquired shares In a dairy company with a vlow to selling at the earliest possible moment. Those people naturally felt very little Interest In the welfare of the factory bejond their immediate gains, and to meet cases of this kind It was a wise policy to provide ample for depredation. They wanted to keep their values on the right side. He .thought most factories In Tarnnakl would be well advised in giving a little more attention to that and the general stability of their business, leaning less hea-lly upon the banks. Referring to shares held by non-suppliers, he said that If he had his way ho would pay Interest, on thoße shares of at least 5 per cent. There was at present In Taranaltl about a quarter of a million In paid-up shares held by non-suppllors, and yet for the purpose of flnnnclng these shares were not worth £IOOO. At the very least they should be able to raise £IOO,OOO without entering Into fresh obligations when faced with tlie necessity for erecting plant to deal with casein, dried milk, and sugar of milk, as was contemplated. Either the shareholders should receive interest or the company should buy them out. Dealing with the extra cost of manufacture, Mr Marx said that while tho company had had to pay double and went up to ten times the pre-war rates for their factory requirements, thoy had continued to turn out an article fully equal to pre-war quality. Mr. Llhh seconded. Mr. McGulnness askod why somo of the suppliers had gono to neighbouring factories, and why Mr. Guy, one of the directors, had resigned. He crltlclßed several Items on tho balance-sheet, and mM ha nonalriftrad £4OO

too large nn amount to alio* as depreciation on the cheese store, seeing that the building was of concrete. The pay-out should have been better and did not, m his judg. iment, compare with neighbouring factories. The chairman said that when they got right down to figures it would be found that their j own factory was quite as good as other com- : panles and slightly ahead of two of the JargeSt ; companies. He was afraid that the directors could not please some shareholders, but they were trying to work to the best advantage of the whole of the shareholders. He did not known why Mr Guy had resigned. With regard to the cheese Btore, he did not tltlnK too much had been wrttlen off, seeing that the building had been erected under war conditions.

Mr. Astbury considered that some details should hnvo beon given of the amount set out in tho balance-sheet as charges account. The chairman explained that owing to the illness of the secretary It had been difficult to set out particulars, but these could ho given. The company had not actually cmbarked In the timber business, but had made arrangements whereby they would receive an additional quantity of crates. Tho three retiring directors, Messrs. P. Iloskln, T. Linn, and G, Preece, were re-elected unopposed.

On tho motion of Mr. Astbury it was resolved that a Cow Testing Association be formed, each member to find his own bottles, box, scale, etc, 'and pay 2s per cow, being the Department's testing fee, such fee and any amount due for sundry requisites to be deducted from the suppliers' milk cheque. The chairman explained that the company received rennet from the Rennet Company In Proportion to the number of veils supplied, and urged members to aave as many veils as possible.

Mr. H. Burdlkln was appointed auditor for the ensuing year at a fee of 20 guineas. At the conclusion of the meeting, light refreshments were served by the ladles.