DAIRY INDUSTRY.

Taranaki Daily News, 22 June 1921, Page 3

DAIRY INDUSTRY.

THE NORTH TARANAKI COMPANY, THE ANNUAL MEETING, There was a large attendance of shareholders of the North Taranaki Co-op. Dairy Company at the twenty-fourth annual meeting held in the Urenui Hall yesterday. Mr. 11. M. Purdie (chairman of directors) presided. In moving the adoption of the annual report (already published) tl?e chairman congratulated shareholders on the very successful results of the year—results which were not only a record in the h/tory of the coin*pany, but also would probably be a record, he thought, as ‘far as prices were concerned for a long time to come. He expressed the hope that the coming season would be a record as regards production, as l.t was only by that means that they would be able to equalise the falling prices of produce. He did not think they were likely to see the average pre-war prices for dairy produce for some time yet, as the cost of production, particularly in connection with wages, was not likely to fall to tho old level, and this would have to be met by a higher price for the goods. ,

The number of suppliers to the company during the year bad increased by ten over the previous year, and there was an increase in the general milk supply of nearly 700,0001 b, a very satisfactory feature. There was stl.ll a large area of Idle land in the company’s district, and he hoped that this would be soon under closer cultivation, and utilised for the production of imilk to its full capacity. He also looked forward to seeing greater production on the older-established dairy farms, and this object could be realised by improved scientific methods of farming.

Dealing with output, the chairman mentioned that when the control of cheese by the Imperial Government ceased on July 31 last a considerable amount of activity in the market resulted, and offers for outputs at is 2 1-Sd per lb. were made, many sales being effected at this price, and later sales were made at Is 2%d, Is 2 3-Bd, Is 2%d, and he believed there were a few at Is 2%d. The directors were in close touch with the position, and had unanimously decided to sell their output. They made an offer of Is 2 7-16 d, and a sale resulted; It was true that some factories got from l-16tb to 5-lfiths of a penny higher by holding a little longer, but in the opinion of tlie directorate the prices were a dangero is thing to play with. They all knew what happened to the cheese market since, and those factories who unfortunately adopted a consigning policy in preference to selling, he regretted to say, would be the losers by nearly Is per lb butter-fat. The shipping position also had not been in favor of those who consigned, and the consequent excessive shrinkage, which, he was led to believe, amounted to between four and five per cent., was an additional loss to be borne by consigning factories. At the beginning of the season they were told that, shipping facilities would probably improve greatly as the season advanced, particularly after the end of last year, but Instead of that it got worse, and this had cost ccmpanies a considerable amount in storage charges and bank interest on advances against cheese in stores. The position was particularly hard for consigning companies, as though up to the end of the cheese market at Home had hold up fairly well, the consignments would now meet the new season’s supply of Canadian and United States cheese in competition, the result being that within the last few weeks the price had slumped badly. f In regard to butter/the position was somewhat different. The Imperial control had been extended for another year, and the price paid for last year’s output, namely 2s fid. was very much more satisfactory than the price paid for the two previous years’ output. He was sure that if butter had been controlled at the same lime as cheese, Ihe results, especially on consignment, would not have proved nearly so satisfactory, altbougli the drop in prices was not likely to have been in the same ratio as the fall ’u cheese. Next season, however, butter would be on the open market. The shipping position was becoming more satisfactory, and there was a prospect of a more regular despatch of steamers. When the contract for the sale of the company’s output of cheese terminated on April 30, the directors Lad decided to change over to the manufacture of butter en irely, and this policy would le continued until ai Improvement was shown in the cheese market. At the present time the position of cheese versus butter was obscure, and it was impossible to make any forecast as to what would be the policy of the company in tlie future. Present indications were in favor of butter, but they were in a position to change over to the manufacture of cheese at short notice if prospects warranted t the change. Dealing with casein, Mr. Purd:.e said the directors had given the subject careful thought during the past few months. In the event of butter only being manufactured next season, they would be able to make casein, but in view of the serious decline in the market, they were inclined to believe, that it would be better to put the money into

The chairman stated‘that the directors had realised the necessity for the erection of a new butter and cheese factory at Onaero, but had decided that it would be an economical policy to repair the present, factory to enable. it to be used for another two years, when the question of a. new building could he considered. This would probably result in the work -being done at less cost. Turning to the balance-sheet, the chairman dealt with a number of Items of expenditure, and explained the reasons for various increases. The whole of the company’s plant, he said, had had a very thorough overhaul. In conclusion, Mr. Purdie thanked his co-directors for the assistance they had given him in administering the affairs of the company, and he expressed the hope that next year would be quite as successful as that just passed. The motion for the adoption of the report, was seconded by Mr. P. Darke, and after a number of questions had been replied to, was carried. For the two vacancies on the directorate the retiring directors, Messrs. A. Cole and J. T. Robinson, were the only nominees, and were re-elected. Mr. A. J. Tunbridge was reappointed auditor. Tlie chairman was votetF'an honorarium of £75 for his services during the year. In the past it has been the policy of the company to purchase manures, benzine, and other items on a fairly large scale for suppliers, but a resolution was passed recommending the directors to discontinue this class of business except under modified conditions. The question of forming a cow testing associalion was discussed, and was referred to the directors with a recommendation to arrange for one of the officers of the dairy division to address a meeting of shareholders on the subject. A hearty vote of thanks was passed to the manager (Mr. Huse), the factory staff, and also to the directors and secretary (Mr. E. Garner), for their services to the company. At a subsequent meeting cf directors Mr. Purdie re-elected chairman.