MIDHIRST DAIRY COMPANY.

Taranaki Daily News, 26 July 1921, Page 6

MIDHIRST DAIRY COMPANY.

TWENTY-SIXTH ANNUAL MEETING. The twenty-sixth annual meeting of the Midhirst Dairy Company was held in the Midhirst Hall yesterday, when Mr. G. Sangster, chairman of directors, presided over an attendance of about 100 shareholders. The chairman apologised for the absence of Mr. W. Vickers, who was in the Stratford Hospital. ANNUAL REPORT. The annual report gave the following statistics, with the figures for the previous season in parentheses:—Milk received 20,493,9891b5. (21,110,5291118.) ; average test, 4.24 (4.25) ; lbs. of butter-fat, 880,066, including 11,2481b5. of cream (897,8501b5.) ; butter 1 made, 1,051,3581b5. (1,063,9981b5) ; overrun 1 19.46 (18.50) ; ratio, 19.49 (19.54). The bal-ance-sheet, slowed a surplus of £14,215 14s lOd. which will suffice to make a further payment of 4d over the season, 2d of which will be paid on July 20, and 2d on October 20. X further payment of l%d will be paid out on October 20 on account of casein. Suppliers will then have received 2s 10% d over the season’s butter-fat. The sum of £655 has been written off for depreciation on lines as required by the Commissioner of Taxes. The balance-sheet showed the total receipts to have been £128,651 18s Id, the principal items of expenditure being: Wages £2984, fuel £1691, boxes £1913, requisites £619, repairs and renewals £3058, insurance £457, depreciation £655, railage and carting £1362, freezing charges £795, reduction bank debenture account £BOO. CHAIRMAN’S ADDRESS. In moving the adoption of the report and balance-steet, the chairman said that he thought he could congratulate shareholders on what was a record as far as the financial aspect was concerned. The quality of the butter had been well maintained, in fact it had improved, the company having been top at Moturoa for the average grade over the season with 94% points. They had also been top the previous year, and he hoped that they would continue to hold that position. That, however, was a matter which largely rested with suppliers themselves, as the qual-, ity of the butter really commenced in the paddock. It was no use sending milk to the factory with food taint and expecting firstclass butter to be made from it. There was only four monthsh. in the year that they could feed on grass, and soft turnip was really their staple food in order to keep up tho supply of milk. If the cattie were fed judiciously there would not be much wrong with rhe milk, but if the cattle were fed on .turnips with green tops, one man’s supply | would taint the whole day’s milk. The man- [ ager and staff were willing to do their part, I and it was up to the suppliers to assist us j far as possible. JSvery country in the worldi was looking ior fresh markets, and it vas quality that would tell every time. Midli'.rst was fortunate in that the quality of its butter was the best in the Dominion, ana whereas some other factories were having difficulty in getting rid of their surplus butter, Midhirst was in the happy position of having sold all theirs. The company had had an exceptionally good overrun last year, and Ip this connection he pointeu out that in their output every point of overrun meant £llOO While not wishing to make comparisons, had their overrun been the same as Stratford’s, it would have meant a difference of £2OOO. Regarding casein, he said that last year they had made a contract to sell their casein on a butter-fat basis, viz., on lactic casein 3d, and on rennet casein 3%d per pound butter-fat. The casein company to pay all costs, depreciation, etc. This hail worked out very well, with the result that the company had been able to pay out to suppliers 3/-<l p r pound. It was not possible to say much regarding the prospects of casein for the coming year. The casein company at truu present time had the whole of last year’s: make on hand. Owing to strikes, etc., they had not been able to get It shipped before the bottom fell out of the casein market. They had 1000 tons at Aramoho. He did not know what the prospects for next season would be. as both Mr. Holtz and Mr. Nav'n u were at home, and negotiations would be at a standstill until they returned. He had hopes that Arameho might be able to buy then’ casein, but if hot they might be asked to work on the co-operative syst- ■ . as was done pome time ago; but if this were adopted the company would want some control over the management of tie casein. As well as being successful, the company had worked harmoniously throughout the year, and this was • largely due to the secretary (Mr. Hogg), and the manager (Mr. Bowmap), and staff. He then formally moved the adoption of the report and balance-sheet. Mr. Somers seconded. THE DISCUSSION. In explaining the item of £3OOB 14s 3d for r■•pairs and renewals, the • secretary stated that it had been necessary to obtain two new separators, two boilers, etc., as well as to paint the factory buildings, cottages, v! They would be able to go through next J< ar on a normal expenditure as regarded repairs. ■ Regarding the increase in cartage, the seerc- . rary stated this was due to the fact t-u't the lorries had io be overhauled this year, costing £319. Mr. Plews considered these items should be placed to capital account. Tie realised that it. was a good thing to make such provision during good years, but it was penalising ].: - sent suppliers, and If renegade suppliers came back they would be made a present of tie new boilers, etc. The chairman pointed out that the £2BOO payable off the new buildings might be credited to present shareholders in the event it being necessary to raise fn-sb capital for rebuffing purposes, which would have to be done sooner or later. At present all th >v share capital was fully paid up, and. the plan now adopted was building them up into sound financial position. In reply to Mr. Forbes, the chairman said suppliers could charge more for their shafts when selling out. Mr. Forbes: We would want to have Horns on us like a Jersey bull to charge them. ’ The secretary pointed out that, suppliers would have been paid 2s 10V*d, and they had not had any share capital to pay. Every other company was paying id for share capl- j tai, . I Mr. Forbes said it would be better if Midhirst had deducted Id on allotted shares. In reply to a shareholder who said there, was misunderstanding over the matter, the chairman stated that, the Rugby Road suppliers had paid for their building, and the company had taken their shares. j Mr. Perham asked what insurance was on , the two-roomed building that was destroyed by fire at Waipuku on Saturday night. 11 had been used by people passing by to sleep In, and he considered all buildings when not used should be locked up. The chairman said the insurance was £75. Mr. Bullbt also urged that building when •not used should be locked up. He pointed out that a number of cheese hoops stored there bad also been destroyed. The report and balance-sheet was then adopted. THE STORE. The store busines was then discussed. Mr. Plews considered that the profits shown were too small in view of the fact* that the business was all cash and the prices charged. The chairman said that the store was not out to make profits, but to* be a convenience to shareholders. The directors, however, had the store under consideration, and were formulating a new scheme. During the winter nearly £SOOO had to be found to finance the Store till the cheques came in, and interest had to be paid on this, a matter which shareholders overlooked. A shareholder thought the directors should reduce the price of benzine awl make the first loss the last, so that shareholders could procure their benzine from the store instead of going elsewhere. 'The chairman agreed that this would he advisable, and he pointed out the difficulty of buying on a falling market. There was considerable further discussion on the store business, during which suppliers stressed the necessity for having a keen buyer in charge of that department. Eventuftllv a resolution proposed by Mr. Blick and

seconded by Mr. Hoskin, that the store be closed was overwhelmingly defeated. GENERAL. A -supplier asked whether the chairman could give any idea as to whether they ; would bo manufacturing casein. Mr. Bullot coiiVdercd the shareholders had lost their chance when they declined to raise capital to erect a casein drying plant. Now they did not want to rear calves, and probably could not sell their casein. The chairman pointed out that if they had passed the’ resolution they would probably have been no further ahead, as they could not have raised the money. Moreover, a new method had recently come out in Australia that would necessitate only half the expenditure on buildings and plant. ELECTION OK DIRECTORS. For the three vacancies on the directorate there were four nominations, viz., the three retiring directors, and Mr. R. J. Morey. The election resulted: R. J. Morey 416, .T. M. , 384, E. A. Adlam 352 (elected), and L. Baskin 271. Mr. T'f H. Penn was re-elected auditor. CHAIRMAN. At a subsequent meeting of directors, Mr. G. Sangster was re-elected chairman. STRATFORD FARMERS’ CO-OPERATIVE ASSOCIATION. THE ANNUAL MEETING. The annual meeting of the Stratford Farmers’ Co-operative Association, Ltd., was held in the Town Hall yesterday, Mr. T. Ranford presiding over an. attendance of about fifty. The chairman, in moving the adoption of the report and balance-sheet (already published), said that the past season had been a bad one for the dairy farmer so far as production was concerned, owing, in the first place, to the very wet spring, followed at the other end of the season by an exceptionally dry autumn. However, despite the climatic set-backs, there had been a successful year’s operations. Never before in the history of the company had the pay-out been so high ; 2s per lb. of butter-fat had j been paid out for both butter and cheese I throughout the year, and it was not known what the final payment would bring it up to. it was anticipated, despite the uncertainty of cheese, that butter would realise at least 2s 7d per lb. The turnover had increased from £141,000 to £165,000, a total gain of £24,000. Previous to the annual disposal meeting, the outlook for the season just plosed was most promising. A free market for cheese j bad been secured, and those companies which had sold had secured as high as Is 2 Vid per lb of cheese. Stratford adhered to the consignment policy. Shareholders had been emphatically antagonistic to a selling policy in the past, and he had no doubt that a company adopting a fixed consignment policy would come out on top over a period of years. About June 1 those factories which were manufacturing cheese changed over to butter. The directors had decided that though cheese was still a payable proposition to manufacture, by comparison with butter it would not be so profitable. The delay In shipping made it apparent that cheese would be competing against the Canadian output on the Home markets, and in tne meantime butter had been sold to the Imperial Government for 2s 6d per lb up to tl.e end of March. With cheese uncertain and a fixed price for butter, together with the strong advibe of experts, the directors decided to make the change, and events bad proved that they did wisely. Delay in shipping had also caused as much as 5 per cent, of shrtuKage. in normal times 2% per cent, was a fair allowance. At the end of March, tie close of the period for which the Imperial Government had i purchased their make of butter, the New i Zealand Government decided that control of ; some sort should continue, at least until the end of August, and negotiations between the Government and the dairy representatives led to an agreement whereby the Government fixed the price for bulk butter at Is ll%d Per pound, to be subsidised by the Government at tte rate of 2d per pound, subject to the butter being in consumption by August 31. They had been given to understand that «c the end of next month they will have a free market. When tho books were closed at the end of May there was still unsold £11,600 worth of butter. This had since been sold for spread delivery, and they were not. yet in receipt of the cash for it. The delay in skipping meant a big loss. Storage charges mounted up, and the delay meant that cheese would strike the lower prices. When the books were closed in May cheese had fallen to 94s per cwt., whilst in April they had obtained their highest price of 161 s per cwt. Under normal conditions the cheese would have been sold by the end of April. Cheese and butter suppliers had been paid only 2d per pound of butter-fat as a further payment on July 20, as against 4d per pound * paid ,to those branches producing wholly but-1 ter, because being in doubt as to what the unsold portion of cheese would realise, and 1 not wishing io be placed in the position of I having to ask for a refund, the directors ■ aimed at keeping sufficient money in hand Ito secure the position. Prospects at present, : however, were muck brighter, and with the I then unsold cheese realising more than was i estimated in the balance-sheet, there was I even a possibility of a further payment in i regard to cheese. The interest hill had been very heavy for the year, the total being £836. This was due to a large extent to the unsatisfactory state of the shipping, and but for the fact that the interest account had been credited with £243 from the freezing company, the total would have been higher. Charges had increased all round! Railway charges for dairy produce had been doubled, and from June 1 the Government had instituted grading fees. Shipping charges had been very heavy, but they had managed to secure a reduction of from l%d plus 10 per cent., to l’4d plus 10 per cent., and were striving for further reductions. During tho year the new Income tay regulations in regard to dairy companies had come into force. It was felt that this tax was an injustice to the dairy tug industry, and representations are to be made to the Government through the Na tional Dairy Association to have this matter remedied. Tre association had representation on the South Taranaki Dairy Companies’ Committee, had been brought into existence for the purpose of keeping in touch with dairy companies. During the year the committee had gained a report of the Obura. coalfields by the Government Geologist (Mr. Morgan), and bad also gained data in regard to casein and its manufacture. The association directors had been making inquiries regarding the prospects for the coming season and the possibility of supplying the Wanganui Casein Company. No definite information was yet to hand, but the casein company bad promised to communicate with the association as soon as they knew if they were ame to deal with any more casein. The prospects for the coming season were bright. It was too early to predict whether butter or cheese would be the better commodity to manufacture, but the outlook for both was quite. good. He did not think war prices would be maintained, but they could be reasonably sure of something better than pre-war prices. If they were willing to work and bring commonsense to bear on their efforts, they need have no fear for the future He commented on the good work done during the year by the secretary of the association (Mr W. Pastier). The report and balance-sheet were adopted without discussion. The two retiring directors, Messrs. L. E. Hann and G. A. Harris, were re-elected, and : Mr. J. W. Bradford was elected in place of Mr. J. C. Towes. As there were just sufficient candidates for directorship to fill the vacancies, no election was necessary.