WAI-TOI-TOI DAIRY CO.

Taranaki Daily News, 15 August 1921, Page 7

WAI-TOI-TOI DAIRY CO.

ANNUAL MEETING. The sixth annual meeting of the above company was held at the factory on Wednesday last. Mr. J. F. Phillips presiding over an attendance of some twenty suppliers. REPORT AND BALANCE-SHEET. The chairman read the annual report and balance-sheet as follows: “In presenting the sixth annual report and balance-sheet your directors have to congratulate the shareholders on an Increased supply and record pay-out. You have dealt with 3,930,028 lbs of milk, an increase of 836.433 lbs. The butter-fat from milk totalled 160,754 lbs, and from cream, 10,135 lbs, an increase of 23,178 lbs butterfat ; lbs of milk per lb of cheese 9.23; average test and yield 2.64 lbs. The cheese made totalled 425.500 lbs (factory weight). After writing off £146 6s for depreciation, your profit and loss account shows a credit balance of £3012 2s lid. Suppliers have received 2/3 per lb for butter-fat during the season, and your directors recommend that the balance be allocated as follows: A dividend of 5 per cent, on share capital paid to June 30, 1920 ; 2%d per lb of butterfat to cream suppliers, and 4 3-16 d per lb of butterfat to milk suppliers, bringing their total payment equal to an average of 81.W per lb. You are asked to elect three directors in place of Messrs. Baker, Cannon and Johnson, who retire by rotation and are eligible for re-election; also an auditor. Mr. Tunbridge again offers his services.” The profit and loss account showed the receipts to have been £26,286 17s 3d and the expenditure £23,274 14s 4d, leaving a credit of £3012 2s lid. The assets were shown as £5690 15s, and the liabilities £2678 12s Id; the balance of profit and loss £3012 2s lid, making the total £5690 15s. A comparative table of quantities and averages compared with the three previous seasons showed the number of suppliers in 1918 to have been 13; in 1919, 13; in 1920, 16; and in 1921, 23. The milk received for the corresponding years was 3,575,1831b5, 3,218,2681b5, 3,093,5951bs and 3,930,0281b5; butterfat, 139,3121b5, 126,7531b5, 124,4551bs and 160,7541b5; butterfat from cream, 8321b5, 25861b5, 298Glbs and 10,1351b5; cheese made, 367,0001b5, 340,0001b5, 336,5601b5, 425,5001b5; lbs of milk per lb of cheese, 9.46 9.46, 9.19, 9.23; lbs of cheese to lib of butterfat, 2.634, 2.68, 2.7, 2.64; average test, 3.9 per cent., 3.93, 4.02, 4.09; average price per lb of butterfat, 21d, 22d, 23d, 31.28 d; average grade cheese, 90.23, 89.84, 90.18, 89.42; average grade y’hey butter, 87.64, 86.27, 86.09, 84.35; average grade creamery butter, 86.28. THE DISCUSSION. The chairman, in moving the adoption of the report and balance-sheet, said the directors were somewhat disappointed that the amount paid out had not been larger, as the output tad been sold at n record price. The expenses, however, had been higher than ever, and several items re freezing charges, etc., which should have been debited to last year, were held up on account of delay in the shipment to January of this year. An offer of 11 5-8 d for cheese had been received, but the directors felt they would like the feeling of the meeting as to whether they should consign or sell straight out. He invited discussion on the balance-sheet and other matters.

Mr. S. J. Sutton said he thought the chairman and directors had been somewhat lax in the management of the affairs of the company. He did not consider the balance-sheet sufficiently explicit to th_ ordinary layman. To the ordinary farmer, there was no indication as to the cost of manufacture for cheese in relation to the amount received for butter-fat. He worked it out, and found the cost to be somewhere in the vicinity of 5%d per lb. Mr. P. Spurr, as a director, said he was pleased to see there was a shareholder who tad taken this matter up. Ho had also worked the cost out. and found the amount to be 5 13-16 d, Including depreciation, which left the supplier with 2s 7 3-16 d per lb for butter-fat. These and other onatters. In his opinion should be made clear on the balancesheet.

Continuing, Mr. Sutton said he would like to know where the whey butter had gone to, pointing out that although the quantity of milk had considerably increased, there was net as much whey butter manufactured in proportion as last year. He estimated they had lost somewhere in the vicinity of 2d per lb on this article, and he would like some solution as to how it had occurred. It seemed to him It must have gone down the drain. Upon investigation it was found that the figures in respect to the output of whey butter did not compare favorably with those of last year, and no explanation of the matter could then be made, whereupon Mr. Sutton moved as a recommendation to the Incoming directorate that an expert butter maker be engaged, and he felt sure that the suppliers would not grudge any extra expense that might be incurred in this direction, being certain that it would amply be repaid. The suggestion met with the approval of those present, and was agreed upon. Mr. Gordon Salway asked for information as to the sum of £237 9s 5d freezing railage and port charges, as he understood, together with other suppliers, that the output had been sold free of all expense, after it reached the freezing works.

The secretary explained that w*hen the books were closed at the end of the previous financial year, there were large stocks of the company's cheese in store awaiting consignment, and though the Government had paid for cheese the factory was still responsible for storage charges. They had anticipated quitting the cheese before August 1, but owing to congestion of shipping it did not get ajvay till January of this year. Meanwhile, storage charges were accumulating, and when presented had naturally to come out of this year’s account, as suppliers had been paid In full last year

Mr. Salway said It seemed rather hard that a new supplier coming in this year should have to pay charges on last year’s working. The secretary pointed out this was one of the Joys of co-operation. It must also be remembered that new suppliers were rfeapinig the privileges of joining a factory almost unique in its financial standing, a position which had been brought about by the heavy deductions taken from the older suppliers. Other items, cost of requisites, etc., were explained, and the balance-sheet was adopted. The chairman said that some few months ago the White Cliffs factory had asked this company to join in a movement for the appointment of a .supervisor to carry out the testing of herds, inspection of dairy sheds, and to conduct agricultural experiments In the district. Uruti had declined to come in, but North Taranaki and Tikorangi were in favor of the movement. The present directors were also of opinion that the scheme was a good one; but the matter had been held over in order to obtain an expression of opinion from suppliers on the matter. It now remained with them to decide whether they were to be represented at a meeting to be held in Urenui shortly in furtherance of the scheme. After considerable discussion. In which the opinion was expressed that from past experience it had been found that Government supervision, which was rather inclined to drive than to lead, would be of little use, the majority decided it would be inadvisable to join in such a movement. The chairman then asked what steps they proposed to take to Improve the quality of their milk. Mr. Ridgley suggested that the manager and two directors be appointed to go round to the different sheds, and ask suppliers to cooperate in the matter of cleanliness and the installation of coolers, etc. The chairman said he would not consent to form one of such a deputation. Some months ago, Mr. Spurr and himself bad been appointed to go round with a view to getting suppliers to instal coolers. They had received promises of support, but to his knowledge matters had not been altered. ' Another director pointed out that it was all very well to talk about tact, but it was well known that in every district there were some suppliers who would not fall in line with the others without direct Government authority. It was eventually agreed that the new directorate be empowered to take the necessary steps to ensure the delivery of good milk.

With reference to the disposal of this season’s output, it was resolved that the directors be empowered to use their discretion us

to the advisability of consigning or selling outright. ELECTION OF DIRECTORS. There were eight nominations for the four vacancies on the directorate, the extra vacancy being caused by tte retirement of Mr. A. Sorensen; the voting resulting as follows: Messrs. G. Baker, 54; S, J. Sutton, 47 ; Mooney, 47; J. Cannon, 47; G. Salway, 36; A. Johnson, 28; S. Ridgley, 25; Mrs. Rockett, 18. The first four gentlemen were declared elected, and duly returned thanks. At a meeting of directors held immediately after the annual meeting, Mr. J. F. Phillips was elected chairman, this being bis, seventh year of office.