DAIRY COMPANIES.

Taranaki Daily News, 5 September 1919, Page 2

DAIRY COMPANIES.

FRANKLEY ROAD. TWENTY-SECOND ANNUAL MEETING. The twenty-second annual meeting of the Frankley Road Dairy Factory was held at the factory on Wednesday, when Mr L. Hill, chairman of directors, presided over an attendance of about 40 shareholders. REPORT AND BALANCE-SHEET. The report regretted to note a decrease In the supply. The milk received totalled 3,400,118 lbs., a decrease of 011,310 lbs., butter-fat 141,717 lbs., and cheese made 345,000 lbs., a docreaso of 67,400 lbs. The average test was 4.2; lbs. of milk per lb. of cheese 9.8, and lbs. rheose per lb. of butter-fat 2.44. After writing oil £314 to reserve against the Freezing Company shares, the profit and loss account showed a balance of £Ol5 10s, which the directors recommended bo allocated by a further payment of Id per lb. of butterfat. The following statistics were presented, last year's figures being given In parenthesis: Number of suppliers, 38 (48) ; milk received 3,400,118 lbs. (4,011,434 lbs.), butter-fat received 141,777 lbs., (101,717 lbs.); cheese 340,000 lbs. (413,000 lbs.); average test, 4.2 per cent. (4.05 per cent.); lbs. milk per lb. cheese 9.8 per cent. (9.7 per cent.); lbs. cheese per lb. butter-fat, 2.44 per cent. (2.6 per cent.); average grado 89.50 (90.91). The balance-sheet showed that cheese sales had totalled £15,132, butter sales £099, buttofr fat levy refund £4; total. £15,843. Expenditure: Salaries and wages £730, interest and insurance £240, cases and boxes £259, fuel £229, cartage and freights £OB9, freezing and port charges £320, factory requisites £833, repairs and renewals £B3, trade oxpenses £B7; total £2985. The sum of £11,804 had been advanced to suppliers, £314 depreciation written oft, and £133 placed to reserve account, leaving a balance of £615. CHAIRMAN'S ADDRESS. In moving the adoption of the report and bala/ieo-shect, the chairman regretted that he was unable, as had been the case during the past four years, to report an Increased output. On the contrary, there had been a deoreaso of 011,310 lbs. of milk, and of about 30 ton of cheeso. This was accounted tor partly by tho rough winter and spring, and partly by the loss of twelve suppliers. During the year a. request had been made to the directors to erect a curd station or branch factory at Weatown. Owing, however, to the small supply offering they did not consider It advisable to saddle the company with the large expenditure necessary to erect aud equip a | branch, especially as Us proximity to town made any further growth very unlikely. Although their refusal to build the factory would result lu the loss of a number of suppliers, tho directors were satisfied that they hud done the right thing: In turning down what i would bo sure to bo an unprofitable proposition. In spite of tho loss of those suppliers, tho prospect of supply for tho coming season was good, as new suppliers were coming I from other directions. A motor lorry I had been purchased, and In addition to carting cheese it would be used to bring mill; from the Carrlngton Road. He referred to the shipping position, and the company's Interest In the Freezing Company. Turning to the year's working, the chairman said that the pay-out was not as large as they had hoped, but there were several circumstances to account for this. In tho first place there was a decrease In the outp'it, and then the influenza epidemic had hit tue company very hard, the whole of the staff having been laid up during Us course. At one time tho manager was the only membeo at work, and suppliers aud others gave what help they could to keep the factory open. Subsequently the manager had had to give In to the epidemic. Ho expressed regret at the death of tho first assistant (Mr. Krank). During the vvholo of this trying time, Ihe whole of tho cheese was second grade, which meant a loss of Is 4d per lb., and no butter was ma'ie, which meant a further considerable loss, especially as tho trouble occurred during the flush of the season, when whey skimming was most profitable. Another factor to be considered was the test which had Increased from 4.05 to 4.2. Tho principal Increases in expenditure during the year were in regard to wages, fuel, and requisites. These had all been rising in cost for several years, and he did not know whether high water mark had been reached yet. They were not carrying a large stock of material now, and If'prices did fail during the coming season, would be In a position to benefit by It. In conclusion, he urged upon suppliers the necessity of increasing" their production to the highest possible amount. Tho urgent need of the day was production and more production, and for their own, as well as for Ihe general good, they wanted lo produce all the district was capable of. THE DISCUSSION.

A supplier referred to the considerable Increase of the cost of requisites as compared with the preceding year, despite the decreased output.

The secretary stated that this was duo to tho enormous Increase in the cost of various requisites, which had increased from year to year, the largest increase being lu the past year.

Mr. Vowlcrs said that In 1910 requisites cost 3s Id per 1000 lbs. of milk, in 1018, 4b Sd, and in 1919, 0s 7d. Mr. I'epperell said that If tho war had continued there would have been nothing left for the farmer.

The chairman, referring to the cost of Insurance, said that it seemed an anomaly that Home liners came to New Plymouth and were willing to load the produce, but It had to be shipped by the Corhma, probably the next day, and transhipped at Wellington, entailing double hand-ling, and in addition the company had to pay coastal Insurance. In reply to Mr Vowlors the secretary stated that 10,000 lbs of butter had been made, as against 13,000 the previous year. This decrease was due to the Influenza epidemic. All factories had suffered, but Frankley suffered worse thau many. Mr Todd said that matters might have been much worse, as It was only %d less than last year. The chairman said lhat on the basis of milk suppliers had received exactly the same price per 1000 lbs of milk as in the previous seasons, viz., £3 12s ll%d as against £3 13s. This was duo to the higher test. Willi tho higher price for cheese they should have received moro but 1 for tho unforeseen circumstances. Mr Vowlers considered that freezing and wharf charges were exceedingly high, showing an increase of £lO5 despite the output. The secretary stated that the company had paid the whole of tho storage, and would lift a refund from tho Government on a portion at tho end of the season when the matter was arranged. Moreover they had to pay storage this season on some of tho previous season's cheese, which was held in store. Mr Vpwiers considered that hiore information should be given on the balance-sheet. The secretary said it was a big mistake to give too much Information on tho balancesheet, as shareholders could always get the information by asking at the annual meeting. Dairy factory companies gave more information on their balance-sheets than- did other companies, and that was probably because [hey had no competitors in buying and selling. Other concerns that had competition gave as little information as possible on the balance-sheet. Tho motion was carried.

ELECTION OF DIRECTORS. There wero fiva vacancies on the directorate caused by the retirement of Messrs Hill, tiudopp and Grooby by rotation, and of Messrs Upson and Marfeli, who had resigned. There were eight nominations and tho election resulted: J. Orooby 0(i. F. J. King 55, E. J. Pepperill 52, A. Gudopp 48, G. Burkett 4l> (elected), L. Hill 44, A. Vowlers 44, W. H. Adlam 41. Mr Wjuyard was re-elected auditor, GENERAL. The chairman stated that he wanted all to sign a joint and several of £ISOO to enable the company to advance money to several new suppliers on tlie road whom the company desired to llnance. If the company did not finance them a private concern would, and the supply would bo lost to tho factory. The chairman stated that Mr Upson had been a director of the company ever since he had been on the road, and had devoted considerable time to the compay's interests, having been chairman for two years. On his retirement the directors had forwarded him a letter of thanks. Mr Frank Baker moved that the company spread its payment of tho balance owing on the Moturoa Freezing Co.'s shares over four years instead of two. This would enable tho company to pay out a little more, and though It was generally considered that the company was away on its own, he pointed'out, that they had to contend with considerable opposition. The chairman held that this would require notice of motion. Votes of thanks were accorded the chairman for his past services, and the secretary and staff. At the conclusion of the meeting, light refreshments were handed round and greatly appreciated. At a subsequent meeting, Mr A. Gudopp was elected chairman of directors.