DAIRY COMPANIES.

Taranaki Daily News, 3 August 1920, Page 6

DAIRY COMPANIES.

WAREA DAIRY CO. TWENTY-FQURTH ANNUAL MEETING. The twenty-fourth annual meeting of shareholders of the Warea Dairy Qonipauy was held in the Warea Hall on Monday, when Mr. W. Rumball, chairman of directors, presided over an attendance of about 40 shareholders. ANNUAL REPORT. The report of the year's -working was submitted as follows: — "The following are. the particulars of milk received and cheese and butter made:—Milk received, Warea, 4,322,000 lbs., Newall, 1,992,147 lbs., total 6,314,147 lbs.; butter-fat, Warea, 168,015 lbs., Newall 76,058 lbs., total 244,073 lbs.; averaca test, Warea 3.89, Newall 3.82, average 3.86; butter-fat for cheese, Warea 164,960 lbs., Newall 76,058 lbs,, total 239,018 lbs.; cheese, factory weight, Warea 431,'031 .lbs?., Newall 201,791 lbs., total, 633,422 lbs.; lbs. milk to lib. cheese, Warea 9.79, Newall 9.87; lbs. cheese to lib. butter-fat, Warea 2.62, ■Newall 2.65; official average grade Warea 90.17, Newall 90.25; whey butter made, total, 17,905 lbs.; creamery butter made, total, 4764 lbs. The amount to credit of the .profit and loss account on closing the books for the year was £5920 Is. [Out of this your directors have applied I £304 7s to cover depreciation of the i company's properties and plant, leaving a balance of £5615 14s. Out of this balance the directors propose a payment of five per cent, interest on fully-paid shares, which will absorb £2Ol 16s lOd, and a further immediate payment of 4d per lb. butter-fat over the "whole year, which-will absorb £4067 17s Bd, leaving a balance of £1345 19s 6d, out of which it is proposed to pay a further l%d per lb. butter-fat, absorbing £1271 4s 3d, leaving £74 15s 3d to be carried forward or otherwise dealt with. This will make the total payment for butter-fat for the year slightly over Is 10} d per lb. in addition to interest on shares. The directors regret* the decreased supply of milk at the main factory, also that the expenditure necessary for repairs and renewals was very much heavier than usual, both of which factors reduced the pa.y-out for milk. During the year your directors acquired a suitable piece of land in' front of the factory, and a new manager's residence has been erected, the old residence having for some years been unsuitable. The dam at the mam factory has during the year been the cause of much' expense, having been repeatedly damaged and partly destroyed by flood water."

CHAIRMAN'S ADDRESS. In moving the adoption of the report, the chairman expressed regret at the decreased supply, which naturally increased the ratio of expenses. Newall showed an increase of about 195,000 lbs. of milk, but Warea showed a considerable decrease amounting to 380,000 lbs., and the higher ratio of expenses resulted in the cost per pound of butterfat being 5.79 d, as compared with 5.4 d last year, an increase of about 2-5 d per lb. The total cost of manufacture was £5589, as against £5758 the previous year, with the larger supply, Repairs last year cost £664 as against £294 the previous year, the increase being due largely to renewals at Newall Road, and also to the expenses of repairing the dam at the main factory. This increase represented nearly ] / 2 d per lb. butterfat. He stressed the fact that neither factory was working at its full capacity which could be done at little more expense. Their balance-sheet, he said, had been criticised, and their pay out compared with others, noticeably Patua, which, save that it was under one roof, was practically the same as Warea, tin/ Bupply being the same and the yield about the same, yet they were asked how was it Patua could pay out 2s against Warea's Is IOJd. Without in any way criticising Patua's balancesheet, but purely for purposes of comparison, he would give figures to account for the difference. Patua's total expenses were £4624, as compared with Warea's £5889, a difference of £1265, which was equivalent to lid per lb but-ter-fat. Patua paid no interest, whilst Warea paid £2Ol and placed £356 to reserve fund, making over £SBO which would have enabled them to pay a further id. He gave details showing the creased expenses due to Patua being under one roof. It had also been pointed out that Brooklands, a small factory, had jiaid' out Is ll%d, but ho said that if they compared tha difference intest; Warea being 3.86, against Brooklands 3.72, it would be found that the pay out for milk would be about the same. The test for the year had been somewhat similar to last year, being 3.56, against 3.72, and this should be a satisfactory answer to those who were dissatisfied with their test, for it showed | that if some had gone down, others had -gone up, and the directors had (suffered in the former respect as much as other suppliers. It had been suggested that they should get a member of the dairy division to take charge of the factory for a period and take the test, and while here it would be advisable'to have the milk analysed as the manager had a suspicion that at times water was added or preservatives used, and analysis would be satisfactory to the manager and supliers- alike. The yield had gone down slightly, but this was due to the fact that the river had come down the race into the factory reducing the make for a ttme. Whey butter also showed considerable increase, being 17,904 lbs. as compared with 7971 lbs. the previous pear, the increase at Is 5d per lb., being equal to £703. It was generally recognised that a factory should make 56 lb. of whey butter for every ton of cheese, ane? their factory had made 62 lbs. as compared with 27 lb. for the previous year. The grade had also been slightly better, seconds heing very few indeed. There had, he said, been considerable criticism about the company's operations, but if the suppliers would only supply plenty of good milk, they would get good results. A considerable area of land in the district was not producing milk, but the high price of land would necessitate it sooner or later being milked on and their. output would increase. Another factor that would tend to increase production would he that the high price of land would necessitate more intensive cultivation, and the introduction of better methods on land now milked on. Better herds would give better results, as was shown by one or two herds that now stood out.

He touched briefly on the financial condition of the company, which was very sound, pointing out that their holdings in outside concerns, had during the past six years increased from £740 to £2172, and this without going to suppliers for the money, which they had always obtained from the bank. There was, he considered, too great a tendency to lean on the banks. Now banks were flailing .on companies to reduce their

overdraft, and though this might he a hardship at the time, he felt absolutely certain companies would be the gainers.

The directors, he said, had sold the cheese, output for . the ensuing year. They had a good offer and accepted it. to-day a similar price was not offering, though other companies would be pleased to get it. The price was 3Jd more than they had received last year, and would enable them to pay out at least 8d more. He then formally moved the adoption of the report, which was seconded by Mr. IT. Corbett, and there being no response to the chairman's query re comment, was put and declared carried. , THE DISCUSSION. Mr. Corbett considered the balancesheet very disappointing. He thought too, that 'the directors had taken a very unusual course in disposing of the output before the annual meeting. This; had never been done before in the history of the company. He considered too that the expenses could have been reduced. They had been paying the wages of some of the men»all through the winter with the idea that they would be available for next season, and the m«n were now leaving to take positions in other factories. The chairman stated that they had received an exceptionally good offer, and if they had not accepted it at the time suppliers would have regretted it, .as such prices were not offering now. The manager (Mr. Gleutworth) said that the men kept on had been required during the winter for various work. ELECTION OF. DIRECTORS.

When nominations were called for two vacancies on the directorate, Mr. Caldwell asked what had been done about the resolution asking the rest of the directors to resign, which was passed at a meeting of shareholders. The chajrman said that the resolution was passed at a meeting which was qnite informal, as the suppliers on the Newall Road, were not given an opportunity of attending. A meeting of all suppliers should have been held.

Mr. Caldwell said it could be done at this meeting, and he would move in the matter.

The chairman said that if suppliers wished they could put a resolution through expressing no confidence in the directors, but the first thing to do was to elect two directors to fill the vacancies.

There were four nominations for the •vacancies caused by retirement of Messrs. W. Rumball and W. B. Smith. The former did not seek re-election, as he is leaving the district. The election resulted: W. B. Smith 159, H. Donald 129 (elected); H. Luekin 123, H. Corbett 88. Mr. E. P. Webster was elected auditor. Mr. Caldwell again brought up the question of the remaining directors resigning, but the chairman held that it would be neces'sary to call a special meeting for the purpose, and at the chairman's request, Mr. Caldwell moved that a special meeting be called requesting the directors to resign. This was seconded by Mr. P. Ward, and on a poll being taken the resolution was carried by 129 to 123. Instead of holding a special meeting, the resolution calling on the directors to resign, was, by consent of the meeting, dealt with, and on a poll was declared lost by 159 votes to 88.

GENERAL. A vote of thanks was accorded the chairman (Mr. W. Rumball), who is leaving the district. Mr. R. W. Glentworth (manager) briefly addressed the meeting on the past season's results, and urged all suppliers to bring a good article, and not put water in the milk. At a subsequent meeting of directors, Mr. C. Wells was elected chairman. MELLS DAIR CO. ANNUAL MEETING.

The annual nteeting of the abovo company was held on Friday, Mr. C. J. Hawken, chairman of directors, presiding over an attendance of between twenty and thirty shareholders. The annual report was presented as follows:—Although the season opened with a bad spring, the autiunn was very favorable, and the output, of cheese shows an increase of 34J tons over the previous season. After writing off depreciation, amounting to £6Ol 6s Id (representing 71 per cent, on buildings and 124 per cent - on machinery), providing for payment of interest and directors' fees, the balance on hand will bring payments for the season up to la lljd per lb for butter-fat. The following are the particulars of the year's operations: Pounds of milk received, 8,875,'585; pounds of butterfat, 344,009.84. Cheese statistics: Pounds of milk, 8,778,708; pounds of butter-fat, 339,753.32; cheese made, 918,7801b (410 tons 3cwt. lqr. 161b); pounds of milk to lib cheese, 9.55; pounds of cheese from lib butter-fat, 2.70; average test, 3.87 per cent.; cost of manufacture, 1.22 d; cost of manufacture, including depreciation), 1.37 d; cost per pound f.0.b., 1.47 d. Butter: Pounds of milk, 99,177; pounds of butter-fat, 4,256.52; butter made (creamery and whey), 27,3931b. The chairman said that the output for the season had been over 34 tons more than last year. This increase was attributable to the favorable autumn weather. With their buildings and machinery they were in a first-class position. Everything was in good order, and a liberal allowance had been made for preciation. All buildings were now showing fairly low on their books. It was a recommendation to the directors at the last annual meeting that a house should be put up at each of the factories for the manager and his assistant. One of these had been erected, and it was fortunate for them that they flmd built when they did. Had the work been delayed the cost would have been very much higher. As for marketing the coming season's output, he would be in favor of delaying action for a time. At the present' time they did not know what might happen, but he thought they were going to get good prices for both butter and cheese. He was not in a position to express a decided opinion about the C.W.S., but it was probable that the scheme had been brought forward far too late to enable financial arrangements to be made for the season. He did not know just yet what they had better do with their output. It may be best to sell or consign, of it may even be advisable to deal with the C.W.S. At any rate there was no hurry, and they would go on for another month without deciding. They had the statistics for the factory before them. They proposed paying out Is 7|d per lb for butter-fat, and they had written 12J per cent, off machinery and 7Jd per cent, off buildings, which was 24 per cent, more than last year in each case. The payments to suppliers were a little better than last year As evidence of the good management of their factories, Mr. Hawken pointed out that of 5700 orates of cheese nuuuifeiittirod. less than SO w.«re second

grade. This was very good indeed, and the manager and staff were to be congratulated on the results achieved.

The motion was seconded and carried unanimously without further discussion.

Messrs. Herbert, Bell and Marsh were elected directors, and Mr. H. A. Lennon was re-appointed auditor at the old remuneration. On the motion of Mr. Bell, seconded by Mr. Bickfonl, it was decided to grant a bonus of £SO to the manager, and £25 each to the assistant manager and the secretary (Miss Beamish). A resolution was passed authorising the payment of directors at the rate, of £1 Is per day, and the payment of interest on shares, at the rate of 5 per cent. \

A brief discussion took place on the scheme for selling to the C.W.S. The chairman remarked that they had all no doubt read a good deal about the scheme, and probably knew as much about it as he did. Mr. Herbert said it would not take him long to express his opinion about the scheme. He had no faith in it at all. Tie C.W.S. was trying to buy in the cheapest marketMr. Bickford said he had nothing to say for or against the scheme, but probably they would get as much from the C.W.S. as from any other source. The C.W.S. had been in existence since 1869, and if it was not fairly straight it would not have kept going so long. He would like to have an expression of opinion from the meeting so that the directors would know their wishes. Mr. Herbert asked what they would do if they dealt with the C.W.S. and that society, after the price had been fixed, refused to buy.' They could not then fall back on Tooley Street. The chairman said that personally he liked the Canadian and Danish ideas of selling every week in their own countries. Once the stuff had got Home they lost control and had pradtically to accept -whatever might be offered, even if it was only threepence. He did not think tlnjre was any doubt but that they would get good prices this season, and if they got a real good offer it would be best to sell. No resolution was moved.

At a subsequent meeting of directors Mr. Hawken was reappointed chairman.—Star.

THE OMATA COMPANY. There was a large attendance at the annual meeting of the shareholders of the Omata Co-operative Dairy Company, held at the Soldiers,' Club, New Plymouth, on Saturday. The chairman of directors (Mr. W. J. McKee) presided. ANNUAL REPORT. The annual report stated, inter alia: The directors regret the shriiikage of approximately 10 per cent, in the total output, as this materially increases the cost of manufacture, and trust to see an improvement in this respect next season. It is in the interest of the company that all suppliers should become shareholders, and the special resolutions, providing the amendments to the articles of association, necessary to give effect to this, if carried, will be submitted for confirmation at a special meeting of shareholders, of which due notice will be given. The prospects for casein have materially improved lately, but the development of the industry is qtill hampered by the want of a co-operative drying-factory, which is essential if the best results are to be obtained. The

present control of butter as regards price" and markets will soon expire, and whatever the restrictions placed on open marketing may be, it is certain a very much improved price will be forthcoming, with a, corresponding increase in the value of butter-fat. The summary in connection with factory work showed that the number of suppliers totalled 102, milk -received amounted to 2,7ii'2,9331b, butter-fat being 1 ]<i,(J3(1."25. 'The average test was 4.15. Cream received, 103,5n11b; butterfat. <if1,113.!)91b; average test, 36.5. Total lbs butter-fat, 172,150.24; lbs of butter made, 202,097; lbs of butter per lb of butter-fat, 1.18; average price per lb received for butter, 10.Id; average price per 11) butter-fat paid out as advance in addition to casein money, Is 5.2071; average grade, season 1919-20, 91.90. The report and balance-sheet were adopted. GENERAL. Special resolutions were carried with the view of Teasing the share capital and also regarding alteration of articles of association. Vacancies on the directorate caused by the retirement by rotation of Messrs J. Jury and G. .H.'Bell were filled by the election of Messrs Bell and Leo Sim. Mr. Jury did not seek re-election. At a meeting of directors Mr. McKee was again elected chairman.