DAIRY COMPANIES.

Taranaki Daily News, 23 August 1920, Page 3

DAIRY COMPANIES.

ELTHAM. The twenty-eighth annual meeting of the Eltham Dairj Company was held in the Eltham Town Hall on Saturday, jvhen Mr. B. D. Forsyth, chairman of directors, presided over an attendance of about 60 sharaholderf. REPORT AND . BALANCE-SHEET The annual report stated that tlie output for the year showed a considerable increase over that of last year,, heliig a record in the history of tho company. The a vera:; a price paid for hutter-fat during the year vis 21<i and the balance to the credit of the wojkihg account would enable the directors to make a further payment, of *3.o(>d per lb. o} butter-fat, when all accounts were settled. Statistics were submitted as follows, with trie flgure3 for the preceding year in parcn-' thesis: Milk received (40,232,475 ih.3.1, 46,171,520 lbs.: cream received (51,419 '.bi.l, 57,968 lbs,; butter-fat (1,512,670,94 lbs.), 1,780,984.80 ibs.; oheese .manufactured (1821 tons), 2109 tons; but tar manufactured (25 tons), 27 tons; wliey butter manut'.telureJ (38 tons), 50 tons; average test, buttermaking (3 79), 3 85; cheese-making '3.71), 3.81; cream (38 20), 38.76; number jf suppliers (211), 223. The balance-sheet showed that the output totalled £216,328 Os 4d. The principal items of expenditure- were: Waßes, £10,558 ; boxes, and crates,' £4588; bandage and caife, £1366; rennfttt, pepsin, and color £4052; fieight, £1421; freezing charges, £1240 ; insurance and interest £2142; coal and firewood, £2878; 'salt and sundry reauisiles, £2597; benzine, £677 ; repairs and renewals, £2729; depreciation, £2500. The sum of £155,633 had been advanced to suppliers, toy! tliej-e was a balance of £22,167 to be dealt with.

CHAIRMAN'S ADDRESS. The chairman remarkad that everything was set out so fully in the balance-sheet that had been submitted to shareholders, that it was not necessary for him to comment on the balance. He congratulated shareholders on the very satisfactory position shown. Regarding the supply, he pointed oQt that taking a line over fne last ten years the difference between the best and tho worst year's supply was on ; y 15*4 per cent., including the erection of die ?vew factory' U Waihapa, so that the variation of supply during the past ten years was iractically nil. The price paid out for butter - fat had, however, varied considerably. Ten years ago they were poid out lid per lb. butter-fat for butter, and this had iricreasel till it was now over 2s per lb. butler-fat. The turnover had increased in that time from £90,227 to £216,326, the increase being practically due to (he higher price of the products. Referring to the financial condition of the company, he pointed out that during the past year they had spent £2729 on repairs and renewals, had written off £2500 depreciation, had placed £2864 to reserve,;, whilst tltfir share capital had been increases by £1954, all going to build up the financial position of the company. They had also paid up £ISBO in shares in other companies, which' added to their assets. In addition, he safd the value of their properties Was appreciating, and not depreciating, so during the last eight or nine years, all their new buildings had been erected in concrete. Theis land too comprising 60 acres, I a great deal of which was in the Eltham, borough was also appreciating. All this showed that they were working on sound business lines, and were gradually ♦ building up the position of the company. On the whole, continued Mr. Forsyth, the production of the past season was very satisfactory. With the late spring and the dry weather in the early part of the summer, matters did not look too bright, but the mild weather following right up to the fall more than compensated with the final result that their output was 288 tons of cheese over the preceding year, with a little increase in the Jbufler and 12 tons in the whey butter, the output constituting a record for the company. Speaking of further production, he said that it appeared to him that they were sill! playing" iflth the business. With closer settlement, more suitable labor, better system of growing food, better methods of testing and selection of stock, there was no doubt that production could be enormously increased. While in California recently he had an opportunity of observing what they do there, and by stall feeding they were able to carry a cow to the acre, and though the land appears to be no better than here, they are able to obtain remarkable results per cow. He had attended a Dairy Conference at San Francisco, where statements had been made that were astounding regarding the results per cow, in fact, but that they were backed up, one would have been inclined to look a little aside at them. If similar methods of feeding were followed her,e a faron now carrying 40 cows could carry 60, and if by better methods of selection, etc, the average yield per cow could be increased from 200 lbs. of butterfat, which was the average for the Eltham company, to 300 lbs., which ho die 1 * not think excessive, it would v mean that the production of that) farm wouid be Increased from 8000 lbs. of butter-fat to 18,000 lbs., the increase at 2s 6d per lb. butter-fat would realise £1250, which would go a long way to pay tho labor required in the better feeding and better care.

Speaking of the future value of dairy produce, he said that there was no doubt that a» the present tim& the- future prospects were particularly rosy. The world shortage of foodstuffs would be responsible for high prices for a long time to come. A lot, however, depended on tne conditions at Home, the purchasing power of the consumer and the value of money. Anything in the shape of a financial crises, industrial trouble, or ji drop in wages, .would result in a drop in the value of produce

lie Impressed 011 shareholders the great necessity of saving awl caring for every possible veli. During last season the factories of New Zealand were threatened with a shortage of rennet, the seriousness of which few realised, and but for the Rennet Company, the loss would have been serious both to Industry and to the Dominion. The price paid for veils at present was an exceedingly good one, and he pointed out tljat the more veils received by the Rennet Company the less would be the cost of manufacture. The savins and carinf for veils %«» «ftut ii© eeiiest. nn«d

flioney the farm, ant) he considered that it was a crime to waste what could be turned to profit and what was moreover an absolute necessity for the industry. The cool store which the company had built had, he said, since its completion been earning money for storage of produce from t.he Imperial Government. This had been placed to reserve, and they had now got the buildings on which very little remained to be paid.

Seeing they now had a suitable building opened up the question as to whether they should not iiistaJ a small experimental plant for tho drying of milk and other by-products. Tho delegates wftp had gone abroad, had, he said, furnished their report, but on account of the extreme shortage of coal had been unable .to recommend Taranaki factories to take up the matter in a big way. Since then the committee set up had been offered a one unit plant that could be installed at comparatively small cost, and seeing that they had the building, railway siding, and other facilities ho would have no hesitation 5 n recommending his company to take advantage of the opportunity when it presented Itself of stalling tho plant, and so experimenting in a small way. The directors, he said, had secured a further area alongside their cooling loom at Eltiiam, and also at Te Roti, and he did not think that two better sites could be secured for factories that required a large supply of milk. While not stressing the point, ho thought faat tho time had arrived when all milk products had too high a value for human consumption to be fed to pigs, ana seeing that the opportunity presented itself, he would like to see a recommendation from shareholders empowering directors to take advantage of It. if they thought fit. © The housing of their employees had engaged the minds of the directors, and he believed that before they were much older they would have to have batter housing accommodation for the married men at the different branches. This necessitated the stiffening of their financial position. He would, he said, like to bring before them the question of the reduction of whey for feeding st<rk JJe found that in America they carried out very largely the concentration of butter-milk for feeding chicks, &nd in America they did not carry out much that was not on commercial lines. With the high price ruling for land, labor, and stock now* they must look more to the scientific side of the dairy industry than they had in tho past regarding the treatment of butter-fat and iis imany by-products. So far they had only scratched the surface and a great deal had yet to be learned. They were inclined to think tlfat they had made great strides in the last few years with co-openitiive dairy factories, box factories, cool stores, etc., and the Nationaal Dairy Association. They had hardly started yet. They had yet to cooperate for the supply of coal, for shipping and for marketing of their produce, and further for scientific research For tha want v of all these, there was no doubt., the Industry was losing a lot. They had yet to learn whether it would not pay to reduce the whey by evaporation before returning U to the farm, thus decreasing flie acidity It was &n open question whether it would not pay to reduce the moisture by the Increased food value. He believed there was from 6 to 7 per cent, of solids in the whey, but the proportion of the moisture was so great that'tlie animal was unablo to assimilate the proportion of the solids, so that he believed its food' value would be increased by giving it in a more solid form. This was a district Jn which this should be given a trial. Regarding the shipment of their products, the position, he was pleased to report, was much brighter than' for some time past, and practically the whole of the Government produce should be shipped before much of the new season's produce comes to hand. The future of the shipping problem had exercised the minds of tho producers for some time past, and he referred to the resolution passed at the National Dairy Association conference inviting other producers to approach the Government with a view to some satisfactory arrangements whereby they would control their own shipping, which, he believed was a move in tho right direction. Regarding the future jyarketlng of their produce ,ho said that this had been before them a few weeks previously, and he would not. weary them again over the matter. He then formally moved the adoption of the report and balance-sheet. Mr. Carlson seconded.

THE DISCUSSION. i 111 reply to Mr. Cocker, the chairman said that the cost of production to f o.b. was 5.1 d per lb. butter-fat, including depreciation. . Mr. Cocker said that he had gone into the flucistion and made the cost 5.111 d per lb. The chairman said that this was no near I hat it made no difference. Mr. Cocker also asked information regarding the reservo fund. He considered that information should be given regarding th* amount of milk to took to make lib. < cheese, and also the Quantity of cheese mad* from a pound of butter-fat. He also stressed the need for the appointment of an independent tester. Ho considered the cost of manufacture too high, and stressed the necesfity of economising where possible, particulai-y mentioning fuel. The report and balance-sheet were then adopted, ELECTION OF DIRECTORS. Messrs. W. E. Carter, E. J. Knuckey, and C. H. White, the retiring directors, were reelected unopposed. Mr. W. J. Tristram intimated that he would be unable to accept the position of audiror for the ensuing year, and Mr. E. Parrot*, was appointed to the position at an honorarium of 35 guineas. The directors' honorarium was fixed at £1 Is per meeting. DRIED MILK. PLANT. The ehariman asked for a recommendation from shareholders regarding the installation of the dried milk plant. They could, he said, trust the Erectors in the matter. Tko inptallation or the one unit plant wou-.l educate them as to the manufacture o? drieJ it J lk,

Mr. Cocker, in moving that the directors b.» recommended to instal the one u.V.fc plant for the manufacture of dried milk, took it that the whole company would gain the benefit of any profits after allowing those wno suppiled tlie milk to tho plant to be compensated fur twice a day delivery and loss of wney.

Sir. Wood seconded the resolution, which flas carried. *

The chairman said fhat dried unilk was very low at present, but from Mr. Morton'.? address at Mangorei, he noted that even at the Ijw pnee It was worth 4d per lb. butter-fat, rnd that price even they did not want to go j-asi them. The value of dried milk twelve months ago was nearly Is 4d per lb. butterfar. He believed new channels were being found for the use*, of dried milk, an i if so tlie price would increase, and they mi?ht just as well be in it. Further the American company had offered to instal the pli'.i% and if they were not satisfied it could be taken out again, If satisfied they would pay for it, the cost being about £BOOO or £lO 000. A one unit plant would deal with 25,000 lbs. of milk dally, and if it paid well thoy could run two shifts, dealing with 50,000*!bs. of milk. Moreover, if it proved sattsfaMory, H was a simple matter to add unit to unit. A basis would have to be arrived at whereby the whole company would participate in any profits after those who supplied the dried milk plant were compensated for tho cttra delivery and loss of.whey.

CO-OPERATIVE WHOLESALE SOCIETY In reply to Mr. Cocker, the chainmaa said that the directors had not discussed the question of disposing their output to tho C.W.S. more than to take up shares in the ne»v company. Mr.. Cocker said that at the last meeting he had favored the scheme, hut he had since read the C.W.S. booklet, which said that it would not be satisfied until it. had control of the whole of the sources of production, and in Wo light, of the connection of the C.W.S. with the workers and what had happened recently with the committee of direct action, ho thought they should be careful about -linking up with the C.W.S.

The chairman s;:id that they could not get over the fact that the worker of England was the consumer of their produce. They were out to obtain the best results. There was no reason 'why they should not be sufficiently organised to control their own goods. The C.WS. offered the necessary finaifce, and had no guarantee that- they would get their produce. They would if they -were prepared to pay the best possible price, and that is what the producer was after.

INDEPENDENT TESTER. On the motion of Messrs.* Cocker and Rowe, the directors were recommended to appoint an independent tester. Mr. JHlekeridgc hoped that the services of the tester would be available to shareholders fpp herd testing as this? was one of the principal means by which production could be increased. The chairman said that the manager had always been prepared to test herds for suppliers. A vo;e of thanks was accorded the directors and management. ELECTION OF CHAIRMAN. At a subsequent meeting of directors, Mr. Forsyth was re-elected chainmar.